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‘As the effects of globalisation and recession have affected business practices and regulation over the
period since the promulgation of the Insolvency Act 1986, so too must insolvency systems evolve to meet the changing paradigm of economic recovery. In so doing, modern insolvency systems with effective forms of corporate rescue can play their part in recovering from financial crises by helping to create an environment where business failure and associated unemployment can be mitigated.’
Critically discuss this statement, giving reasons for your answer.
Sample Solution
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