The impact of business registers interconnection on modernizing regulation of the insolvency proceedings

Abstract

Business registers play an essential role in this regard; they register, examine and store information on, for example, a company’s legal form, its registered office, capital, legal representatives and annual accounts, and they make this information available to the public. Cross-border access to business information requires cross- border cooperation between business registers. The Insolvency Registers perform an important role in all stages of the insolvency proceeding because they enhance its transparency and reduce its risks (e.g. counterparty risks stemming from asymmetric information between debtor and creditor, moral hazard etc.). The article provides an overview such problems who related to the publicity and the absence of registers will partially improve by the interconnection of national company registers at EU level by the recently adopted Directive 2012/17/EU on the interconnection of central, commercial and companies' registers. The problem with the European insolvency regulation will not be solved sufficiently by the interconnection of business registers.