Insolvency law through the lens of human rights theories

The debate on the purpose(s) of insolvency law has remained on the cusp for decades. Scholars have traditionally argued that in insolvency procedures, rational people would choose a course of action that promotes either efficiency and/or equality. Despite few notable exceptions, the efficiency-equality dichotomy has never been challenged. In this Chapter, we challenge the efficiency-equality dichotomy utilising a critique based in international human rights law generally, and the standards within Business and Human Rights (BHR) specifically. In doing so, we establish a stronger normative and practical argument for an equitable approach to insolvency law. The primary value of this Chapter lies in rephrasing the theoretical debate on the purpose(s) of corporate insolvency law by arguing that proceduralist theories can be as or even more inclusive than value-informed communitarian approaches to corporate rescue.