The critical discussion on theories in cross-border insolvency: universalism, territorialism, and modified universalism

Abstract

Investment and trade activities brought about by economic globalisation have led to an increase in the number and scale of cross-border insolvency cases, attracting the attention of the international community as well as that of scholars, and the theoretical study of cross-border insolvency has evolved from the traditional universalism and territorialism to the modified universalism. The choice of theory is closely related to the level of economic and social development of the country at that time and the legislative trend of the international community. Modified universalism had been accepted by an increasing number of countries, regions and international organisations because of its flexibility in judicial practice.