The Power of the Insolvency Agent of a Public Commercial Joint-Stock Company to Protect the Rights of Corporate Creditors

Abstract

This study aims to analyse the role of insolvency agents in protecting the rights of corporate creditors in Jordan, with a specific focus on the Insolvency Law No. 21 of 2018. Adopting a normative juridical research approach, the study employs an interpretivist research paradigm that allows for both social and legal analysis of creditor protection. Secondary qualitative data gathered from primary legal documents, including relevant legislation and regulations, as well as secondary sources such as journal articles and online databases. For data analysis, content analysis employed to extract key concepts related to insolvency and creditor protection. The findings organized into three main sections: (a) an overview of the Jordanian Insolvency Law, (b) the powers and responsibilities of insolvency agents, and (c) the protection of creditors. The introduction of the new insolvency law has replaced the former bankruptcy provisions, adopting a more liberal approach that emphasizes creditor protection. Under the new framework, insolvency agents are empowered to manage and modify creditors' lists, taking on the responsibility of representing the rights and interests of creditors. Despite these improvements, challenges related to balancing creditor rights and debtor rehabilitation remain contentious. The study suggests several solutions to address these issues, including enhancing legal provisions for creditor protection, collaborating with international organizations, and strengthening the capacity of law enforcement agencies involved in insolvency processes. These recommendations aim to improve the legal framework for creditor protection and ensure fair treatment of creditors during insolvency proceedings.