Some thoughts on state regulation of South African insolvency law

Abstract

The significance of a modern insolvency system as a key foundation of sustainable economic development has widely been acknowledged and there is furthermore a general recognition that, in turn, those systems depend on the existence of strong and efficient regulatory frameworks. While the primary focus of any reform process of insolvency law should be on how best to serve the needs and interests of society, it would thus be unrealistic to ignore the wider global context in which trade and commerce takes place. This article aims to emphasise the importance of a fresh approach to law reform in this field of South African law so as to ensure compliance with the underlying values of the Constitution but also public confidence in the system of regulation and supervision, and in the process of insolvency law. The main objective of this study is to make certain recommendations with regard to a regulatory framework for state regulation in South African insolvency law and to propose and highlight certain vital design features which could complement any future policy design and law reform initiatives.