2017 will not only be the first year of the Trump Presidency, but also the year in which the UK Government will (probably) initiate the formal procedure for withdrawing from the European Union (on possible negotiating strategies, read here). European Union law has a significant impact on corporate law and corporate insolvency law, also in the UK. In a recent paper (King’s Law Journal, ssrn), Michael Schillig examines the possible consequences of a Brexit on company and insolvency law.
The conclusions of the paper read as follows:
The biggest ‘losers’ are perhaps companies that incorporated in the UK for legal arbitrage purposes and operate mainly in the rest of the EU. These companies would be well advised to convert into corporate forms of other Member States before Brexit takes effect. For the rest of the EU, Brexit should be an incentive to provide a high-quality legal framework for integrated securities markets and efficient and effective corporate and corporate insolvency laws. In recent history, the UK has often been a leader and an innovator with much input into the EU regulatory agenda. In this role, the UK will be missed.