A critical evaluation of Mauritius’ corporate rescue culture with the aim of addressing corporate failures

Purpose Corporate failures in Mauritius continue to expose deep cracks in its insolvency framework, making the development of a genuine rescue culture both urgent and indispensable. Against the backdrop of the Insolvency Act 2009 and the Companies Act 2001, this study aims to critically examine whether the current regime fulfils its purpose of rehabilitating distressed companies, protecting creditors and preserving employment rather than defaulting to liquidation. Design/methodology/approach This study uses doctrinal legal scholarship, focusing on establishing statutes and analysing regulations through legislation, case laws and commentaries. It will analyse relevant legislation, policies, government reports and international insolvency standards. Deductive reasoning will be used to apply these ideas to specific situations, evaluating the Mauritian legal framework’s compatibility with global norms and its ability to address challenges faced by distressed businesses. The research aims to answer the question “what is the law?” through systematic and legal study. Findings The study reveals that Mauritius’s liquidation-driven framework is dominated by liquidation, with limited creditor confidence and weak institutional support. To improve, reforms such as earlier administration, a third statutory objective, reduced judicial involvement, stronger compromise procedures, institutionalised informal rescues and regulation of insolvency practitioners are needed. This could shift Mauritius from a liquidation-driven regime to a credible rescue culture. Originality/value This research provides a doctrinal and comparative evaluation of Mauritius’s evolving corporate rescue framework, critically examining the gap between legislative intent and practical implementation. By analysing recent high-profile corporate failures and situating Mauritius within contemporary international restructuring debates, the study contributes to limited scholarship on rescue-oriented insolvency systems in small island developing economies.