This is a ‘throwing it out there’ piece. Thoughts remain in need of refinement.
Charity insolvency has never been the focus of sustained policy attention. Governed alternatively by company and trusts law, no tailored regime exists. Although there has been a lack of interest in charity insolvency, the picture is brighter elsewhere. In the context of commercial insolvency, a considerable body of critical literature has developed, emphasising the public interests at stake in winding up, and the importance of corporate ‘rescue’ where it is possible. This approach is self-consciously communitarian: rather than looking at insolvency as a legal event upon which property is distributed to entitled creditor, it looks at the impact of closure on wider societal interests.