Journal of Contemporary Issues in Business and Government

Abstract

Two choices are available to a corporation when it is in financial distress. These choices are
either to rescue or to terminate the corporate body. This piece discusses the main procedure of
corporate rescue which is administration. The Cork Report 1982 has structured the legal regime
on insolvency more specifically, founding the grounds for a corporate rescue culture. The main
issue of discussion is whether or not the culture of corporate rescue has been nourished since the
Cork Report with regards to the administration in the light of the Enterprise Act 2002 despite that
there is occasionally an apparent assumption in favour of the presence of a corporate rescue
culture in the jurisdiction of the United Kingdom. This piece scrutinizes the policy issues and
practical features of the corporate rescue, administration management complexities, and
moratoria implications. The article further inspects institutional concerns and pinpoints the
inconsistencies in the judicial attitude of the UK. The article also provides a comparative
perspective highlighting that the United Kingdom can learn the lesson for improvements of its
existing laws from the United States although several Achilles heels exist in the United States
laws