The Role and Position of Other Key Stakeholders Interacting with or Affected by the Distressed MSME

Abstract

This chapter looks at other stakeholders that have an important role in the proper functioning of the MSME insolvency system and that may interact with the debtor during its distress situation in important ways. Both the inception and the ensuing solution for the business in distress may be heavily influenced by the behaviour of creditors, particularly financial creditors, and by the involvement of tax authorities. The fair and efficient handling of the MSME insolvency process may also require dealing with the position of the entrepreneur or the entrepreneur’s family members as guarantors. The MSME insolvency system must also have regard to the position of a MSME’s employees. Finally, the chapter proposes ways and options to address the issues arising for MSMEs as a result of the interaction between the debtor and these other stakeholders.