Abstract

• Insolvency means being unable to pay due debt. When a corporation or company cannot pay its due payment, it may be defined as “corporate insolvent”. As Myanmar is a developing country, a corporate insolvency regime is critical to encourage economic prosperity and sustainable economic growth of the country. Myanmar’s corporate sector is linked not only to ASEAN countries but also to non-ASEAN countries. Hence, the well-established transparent corporate insolvency system may support the economic development. This study provides an overview of the literature and explores the rehabilitation of a company so that it is not insolvent to the extent possible. It begins by defining some relevant terminology and then reviews theories about the principle of insolvency law.