Corporate Creditors Protection Rights Worldwide: Towards A Convergence of Strategies

Abstract

<p>Companies rely on creditors for funding to operate, making it crucial to have legislative and procedural frameworks that protect the interests of these creditors. This article engages in a comparative analysis of corporate creditors’ protection rights on a global scale, emphasizing the Ethiopian case. The study contends that while countries may adopt distinct approaches to safeguard corporate creditors, and variations may exist in the strictness of rules across different strategies, nations have a universal commitment to implement strategies to ensure adequate protection for creditors’ interests. Notably, the study underlines that, amid the surge in globalization and cross-border commerce, strategies for corporate creditor protection are progressively aligning and converging worldwide, signaling a positive trend in global business dynamics, and the Ethiopian case is not an exception. This convergence reflects a harmonized effort across nations to establish a consistent and practical framework for protecting corporate creditors’ interests in the contemporary globalized economic landscape. </p>