Towards Climate-Conscious Corporate Restructuring: A Comparative Exploration of English and Bhutanese Legal Frameworks

This paper conducts a comparative legal analysis of corporate restructuring frameworks in England and Bhutan, examining their capacity to integrate climate variability considerations and promote sustainable business practices. It discusses the procedural mechanisms for restructuring financially distressed enterprises available under the law of both countries and assesses how the countries’ tools and frameworks could be incrementally leveraged or structurally reformed to facilitate a transition to a sustainable economy. The paper also investigates Bhutan's bankruptcy legal and policy landscape including a draft Insolvency and Rehabilitation Act of Bhutan 2025, evaluating the extent to which its Gross National Happiness philosophy, with its inherent emphasis on environmental conservation and sustainable development, influences its approach to corporate distress and restructuring.
By comparing two distinct legal philosophies - the market-driven English model and the sustainability-centred Bhutanese approach -, this research identifies the pillars of “sustainability” in each of these two legal regimes and discusses best practices and potential areas for mutual learning in developing robust, climate-responsive corporate insolvency and restructuring regimes.
This comparative analysis highlights how disparate legal traditions can converge on the imperative of climate action, offering insights into regulatory enhancements that foster ecological resilience within economic frameworks.