Features of crisis management in international practice

Abstract

The article discusses some fundamental mechanisms of crisis management: managing the insolvency and bankruptcy processes of international organizations. As an illustrative example, the Canadian experience as a successor system aimed at preserving the debtor organization and, if possible, restructuring the debt to restore the company’s solvency and financial stability. It characterizes the activities of the Office of the Superintendent of Bankruptcy (OSB) and trustee in bankruptcy (“trustees”). The Bankruptcy and Insolvency Act (“BIA”) and the key officials’ responsibilities in the framework of crisis measures are analyzed. Differences are identified between the voluntary bankruptcy and forced bankruptcy.

In the Canadian crisis management practice, insolvency is not identical to bankruptcy for both individuals and legal entities. Moreover, the very concept of “person” has an extended interpretation. The successor system involves the search for grounds for the bankruptcy exemptions, especially for individuals who do not cease to exist as legal entities. Therefore in the Canadian crisis management practice, the provision on mandatory financial and tax advice to individuals who have become bankrupt for the first time seems extremely interesting. Conclusions about the possibility of using some individual elements of the Canadian crisis management system in Russian practice are drawn.