2.4.2. Co-operation and C'oininnnieaiion
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For effective co-operation to be a realistic objective, communication between the
various actors is of crucial importance. Consequently, the Model Law entitles courts
and representatives to communicate directly with foreign courts and representatives,
or to request information or assistance from them."" establishing direct channels of
communication is intended to avoid the use of time-consuming traditional procedures,
such as letters rogatory, in situations where time is of the essence.""
The exchange and disclosure of information is made more specific in the case of recognition
ot foreign proceedings. Upon application for recognition, the foreign representative
must identity all foreign proceedings in respect of the debtor which are
known to him or her. And from the moment of application for recognition of a proceeding,
s/he is under a duty to inform the court promptly of any substantial change
in the status of the recognised foreign proceeding or the status of the representative;
and any other foreign proceeding regarding the same debtor that becomes known to
the representative.''
Except in the context ot recognition of foreign main proceedings, the Model Law
refrains from prescribing the types of measures the required co-operation entails. The
Model Law allows for full discretion, providing that the co-operation required may
be implemented by 'any appropriate means'.'"" An indicative list is given as to types
of co-operation that are envisaged. The inclusion of such a list was thought particularly
helpful for those jurisdictions which have 'a limited tradition of direct cross-border
insolvency co-operation'. 1 ' The types of measures listed have all been drawn from person to act at the direction of the court, one is reminded of the 'Examiner with
expanded powers' appointed by the United States court in the Maxwell Communication
Corporation proceedings. Communication ot information by any means considered
appropriate calls to mind recent cross-border insolvency protocols, for instance in
the Laewen Groep Inc. proceedings. The approval or implementation by courts of
agreements concerning the co-ordination ot proceedings reflects the successful use
of protocols and concordats in various cross-border proceedings.
Nevertheless, the significance of these provisions should not be underestimated. On
the one hand, the 'command conveyed' on the courts simultaneously constitutes an
authorisation for courts to actually engage in co-operation. One of the main obstacles
for improvement under current law is that such mandates are absent in the laws of
many states. In particular, for states belonging to the civil law tradition, such pragmat
i sm may be felt to be inappropriate without sufficient basis in law. Articles 25 and
26 are therefore 'designed to overcome a widespread lack in national laws ot rules
providing a legal basis for cooperation by local courts with foreign courts'.1 1 On the
other hand, an unequivocal commitment to co-operation serves as a signal to the
courts and representatives of other states of the 'internationalist ethos' prevalent in
a state.'' ~ It specifically invites foreign courts and representatives to seek co-operation,
by expressing that the court will do anything in its power to make the expense of
seeking co-operation worthwhile.