Publication
Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
On 30th May 2022 it will have been 25 years since the Model Law on Cross-Border Insolvency (Model Law) was adopted by the United Nations Commission on International Trade Law with the intention of facilitating cross-border insolvencies more effectively and efficiently. Since then, the Model Law has been adopted in only 50 jurisdictions.
Fortunately, Canada is one such jurisdiction, the Model Law having been adopted in 2009. Commonly referred to as “Part IV” (as a result of the provisions comprising “Part IV” of the Companies’ Creditors Arrangement Act (CCAA)), the new Model Law provisions replaced what was previously Section 18.6 of the CCAA. Although Section 18.6 had long been used for purposes of foreign recognition, the enactment of Part IV has further facilitated and streamlined the restructuring of several multinational businesses and has become an important and useful tool when considering the restructuring of an international corporate group.
While closely based on the Model Law, Part IV features a number of distinguishing factors as well as accepted (and expected) practices that made Part IV uniquely Canadian. Some of the highlights are set out below.
We are extremely fortunate in Canada to have sophisticated commercial courts that hear matters relating to corporate restructurings. The provisions of Part IV have helped further codify the court’s broad jurisdiction to exercise comity and grant extensive and creative relief if available where the circumstances warrant. While principles of comity and legislative provisions regarding foreign proceedings existed well prior to the Model Law’s adoption in Canada, there is no doubt that adopting these provisions has assisted in further facilitating international restructuring and provided a degree of predictability and certainty for foreign debtors, creditors and other interested parties.
Additional resources:
Publication
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Publication
Artificial intelligence (AI) raises many intellectual property (IP) issues.
Publication
We are delighted to announce that Al Hounsell, Director of Strategic Innovation & Legal Design based in our Toronto office, has been named 'Innovative Leader of the Year' at the International Legal Technology Association (ILTA) Awards.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2023