COMI

centre of main interests (COMI)

European Union, International

A term that describes the jurisdiction with which a person or company is most closely associated for the purposes of cross-border insolvency proceedings. The term "centre of main interests" (COMI) is used in the EC Regulation on Insolvency Proceedings (Insolvency Regulation ) and the UNCITRAL Model Law on Cross-Border Insolvency (Model Law).

The Insolvency Regulation uses the concept of COMI to determine which member state of the EU (other than Denmark) takes precedence if competing insolvency procedures are commenced in relation to a person or company in different member states of the EU. Briefly, if insolvency proceedings are opened in the state in which a person or company's COMI is situated, these must be recognised and co-operated with across the EU (other than Denmark).

The Model Law uses the concept of COMI to determine the degree to which the courts of one jurisdiction are obliged to recognise and assist insolvency proceedings commenced in a different jurisdiction.

COMI is not defined in the Insolvency Regulation or the Model Law, although the preamble to the Insolvency Regulation states that it should should correspond to the place where the debtor conducts the administration of his interests on a regular basis and is therefore ascertainable by third parties (paragraph 13, Preamble). In both the Insolvency Regulation and the Model Law, there is a rebuttable presumption that a corporate debtor's COMI is the location of the company's registered office (article 3, Insolvency Regulation and article 16(3), Model Law).

For more information on COMI issues in the context of the Insolvency Regulation and the UK's enactment of the Model Law, see:

Practice note, Cross-border insolvencies.

Practice note, Forum shopping in insolvency proceedings.

Legal update, Court of Appeal rules on COMI and proceeds of crime issues.