'Centre of main interests' - a New Concept in European Insolvency Law

Abstract: I find the concept ''centre of main interests'' interesting, since it is a new concept and a key element in the Regulation. It determines applicability of the Regulation - it is only applicable if the centre is situated within the Community (see 4.1 The Objective and Scope). It is decisive for jurisdiction regarding main proceedings (see 5 The Centre of Main Interessts) and decisive concerning the main rule of the proceedings (see 4.4 Lex Concursus). It is also decisive for determining where a claim is situated. According to Article 2.g of the Regulation, claims shall be regarded as situated in the Member State within the territory of which the third party required to meet them has the centre of his main interests, as determined in Article 3.1 of the Regulation. Apparently, it is important to know how the concept will be interpreted. The other key element in the Regulation is ''establishment''. An establishment in a Member State makes it possible to open up a territorial/secondary proceeding (see 6 Establishment). The meaning of ''establishment'' within the Regulation is therefore useful for the creditors to know. In contrast to ''centre of main interests'', ''establishment'' is known and used in EU Law. The meaning of it within the Treaty is held to be very broad (see 6 Establishment). The meaning of it within Brussels I is considered to be very narrow (see 6 Establishment). Since there is a definition of the concept in the Regulation (Article 2.h), which is not the case for ''centre of main interests'', one could believe that there is very little scope of interpretation. I will make an attempt to estimate where ''establishment'' within the Regulation will be put in relation to the Treaty concept and the Brussels I concept.