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The Regulation is directly applicable in all Member States except Denmark, so litigants can plead it in the national courts. It does not apply to insurance companies or to credit and investment establishments.
To attain its objective the Regulation lays down common rules on the jurisdiction of the courts, the recognition of judgments and the applicable law, and compulsory coordination of proceedings opened in several Member States.
The Regulation applies to insolvency proceedings which comprise the following elements:
The courts with jurisdiction to open insolvency proceedings are those for the Member State in which the “centre of a debtor's main interests” is situated. Where a company is concerned, this will generally mean its registered head office.
But secondary proceedings can be opened later to liquidate assets in another Member State. The law of the Member State in which such insolvency proceedings are opened determines their effects.
The Regulation provides that proceedings opened in several Member States are to be coordinated between them, notably via active cooperation between administrators.
All decisions taken by a court in a Member State that has jurisdiction in the main proceedings is basically recognised automatically in the other Member States without further review.
Last update: 04-11-2009