Comparative Corporate Law Theory and Harmonisation of EU Insolvency Law : Understanding the Impact of Path Dependency

This paper explores path dependency theory in relation to the evolution of corporate law systems. It is accepted amongst corporate law theorists that significant differences in corporate law and governance systems across the globe can be explained by reference to path dependency scholarship. Insights provided by this scholarship raise questions regarding the continued harmonisation of insolvency law in the European Union. Path dependency scholarship provides us with a theoretical framework which might assist in understanding and addressing challenges to the goal of further harmonisation of insolvency laws in the European Union. The purpose of this paper is to illustrate that theoretical debates, such as those which have taken place between convergence theorists and path dependency theorists in corporate governance and company law scholarship, can i) provide analytical tools which give insight into current phenomenon existing in doctrinal law, ii) can provide predictive indicators for the likelihood of success for policy initiatives such as harmonisation and iii) can assist in the formation of future policy initiatives which have a direct impact over time in the development of doctrinal law