CREDITORS’ COMMITTEES UNDER NEW INSOLVENCY III DIRECTIVE AS GATEKEEPERS OF ECONOMIC STABILITY

STRENGTHENING THE EU’S POSITION IN THE NEW GLOBAL ORDER

Abstract

Discrepancies in national insolvency proceedings are the subject of numerous criticisms and are considered one of the key reasons why the EU single market is not sufficiently attractive to investors in comparison with other competitive markets. In order to address the aforementioned issue, the European Commission published the Proposal for the Insolvency III Directive (Directive) in December 2022. After an extensive legislative procedure on March 30, 2026, the Directive was adopted, with a tendency of harmonising several key substantive legal matters in the national laws of the Member States. Inter alia, the Directive addresses the improvement of the position and enhanced protection of creditors in insolvency proceedings (especially cross-border creditors and employee representatives). The creditors’ committee in the context of the Directive is a body that represents the interests of creditors, supervises the activities of the insolvency practitioner, and ensures the harmonization of the conflicting interests of creditors. By representing the interests of all creditors, the creditors’ committee ensures the right to ensures full oversight of insolvency proceedings and a fair distribution of the assets of the insolvency estate. In addition, the Directive introduces the rules for the involvement of cross-border creditors who would otherwise not participate in national insolvency proceedings for the purpose of exercising their rights. Such an approach not only increases transparency in insolvency, but also strengthens legal certainty in the legal system. The paper critically examines the provisions of the Directive, with regard to the establishment, appointment, rights, duties, remuneration and operating costs of creditors’ committees in national insolvency proceedings. The final part of the paper analyses the possible implications of the Directive on the Croatian legal framework, i.e. the potential impacts on the efficiency of insolvency proceedings in Croatia and gives recommendations for de lege ferenda.