Different companies have established the asset reconstruction and restructuring authorities and organizations in several countries. Various multi national companies in different countries are working in this field and are also establishing the asset restructuring phenomena.
Licensing of asset restructuring companies
These asset reconstruction companies are now being established under license. These legalized and licensed companies were established under the Companies Act of 1956. Almost 25 companies have been established under this act and have been registered by the local and international companies. Basically the establishment of these asset restricting companies was meant to prevent and discourage the fraudulent activities which normally prevailed in the asset structuring and restructuring activities.
Need of asset restructuring
Usually people borrow the money from banks on the purchase of any immovable property. Different banks lend them money and this sometimes may cause harm to them in terms of fiscal debts. Therefore the asset restructuring was introduced in order to check these frauds and repair in case of any fiscal loss. In this way many frauds were prevented and were addressed and a considerable decrease in criminal and fraudulent acts was found. Furthermore the frauds of multiple lending could also be checked by means of the asset restructuring system. Different agencies are working on this project and it has been effectively launched and become functional in many countries.
System of asset restructuring
The system of asset restructuring was introduced and it became functional for the first time in 2011. Now it is working efficiently in many companies of different countries. Many of the assets restructuring companies are government owned companies. These include about 50 % or 51 % shares of government as well. The main objectives of these asset restructuring companies is basically to maintain and operate the specific registration system. The main preference of this company is to give preference to security of money over property.
Registration of asset restructuring
Registrations are made on part of the individuals and interested candidates so as to get security for their debts and loans. However attaining the loans and debts would be restricted under the Act of asset restructuring. All this has been made possible by efficient functioning and structuring of the asset management and restructuring.