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Insolvency Law - LAWS3014
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Faculty: Faculty of Law
 
 
School:  School of Law
 
 
Course Outline: See below
 
 
Campus: Kensington Campus
 
 
Career: Undergraduate
 
 
Units of Credit: 6
 
 
EFTSL: 0.12500 (more info)
 
 
Indicative Contact Hours per Week: 3
 
 
Enrolment Requirements:
 
 
Pre-requisite: LAWS1071, LAWS1072, LAWS1081; LAWS4010 or LAWS2010
 
 
Excluded: JURD7414, JURD7444, LAWS3130, LAWS3143, LAWS3144
 
 
Fee Band: 3 (more info)
 
 
Further Information: See Class Timetable
 
 

Description

The course intends to provide an understanding of the law and practice relating to personal bankruptcy law and to corporate insolvency. It has become increasingly important, if not, essential, for all lawyers to understand when and how the law regulates and deals with the results of commercial entities and/or individuals faltering financially.

The course examines the various regimes of insolvency, the effects of insolvency on the debtor, the rights of creditors, how the law regulates the claims of competing creditors, the role of the insolvency practitioner, the recovery and distribution of assets and the investigation of the causes of the financial faltering. The course will also focus upon the interaction between insolvency law and other branches of law as well as the socio/economic implications of insolvency law.


Recommended Prior Knowledge

Business Associations 1, Contracts 2

Course Objectives

A candidate who has successfully completed this course should:
  • Have an good understanding of the law and practice relating to personal bankruptcy and corporate insolvency;
  • Recognise and appreciate the problematic issues that arise in insolvency and understand the various procedures and mechanisms by which the law addresses these issues;
  • Understand the implementation of strategies for managing, rescuing and dealing with individual and corporate estates that are faltering or, in fact, insolvent;
  • Know the rights and obligations of the various stakeholders, including the debtor, the creditors – secured and unsecured, directors, shareholders and insolvency practitioners;
  • Know the reach of the law relating to the recovery of assets and the distribution of the insolvent estate;
  • Appreciate the international and cross-border context of insolvency;
  • Evaluate the social and economic implications of insolvency and the effect of the solutions imposed by the law;
  • Appreciate the interaction between insolvency law and other legal disciplines.

Main Topics

  • Introducing the aims of Insolvency Law and the historical background;
  • Concepts and role-players;
  • Personal Bankruptcy:
- Measuring bankruptcy and insolvency;
- The impact of insolvency on the debtor;
- Recovery of assets;
- Administration of the estate;
- Non bankruptcy arrangements;
- Ending of bankruptcy.
  • Corporate Insolvency:
- Different insolvency regimes;
- Provisional and Final Liquidation;
- Voluntary and compulsory winding-up;
- The effects of winding-up;
- Recovery of assets;
- Administration of the estate;
- Criminal and civil liability of directors;
- Termination of the winding-up
- Schemes of arrangement;
- Receivership;
- Voluntary administration;
- Deeds of company arrangement.

Assessment

Class participation, including preparation and participation in class discussion: 15%

Individual exercises and Mid-Term test: 15%

Final examination: 70%

The final exam will be a take-home exam comprising one or more problem questions as also short answer questions.

Sub-Minimum Requirement:
Students must achieve a mark of not less than 45% in their final exam in order to pass the course.

Course Texts

  • Australian Insolvency Law, C Symes and J Dun - Lexis Nexis/Butterworth 2009
  • Keay's Insolvency: Personal and Corporate Law and Practice, Michael Murray, 6th ed, Thomson Lawbook Company 2008
  • Bankruptcy Act 1996, P Nichols - Lexis Nexis/Butterworth - 2009 edition
  • Corporations Act 2001 - Chapter 5 - as amended

Resources

Refer to the course outline which will be provided by the lecturer at the beginning of the relevant semester.

URL for this page:

© The University of New South Wales (CRICOS Provider No.: 00098G), 2004-2011. The information contained in this Handbook is indicative only. While every effort is made to keep this information up-to-date, the University reserves the right to discontinue or vary arrangements, programs and courses at any time without notice and at its discretion. While the University will try to avoid or minimise any inconvenience, changes may also be made to programs, courses and staff after enrolment. The University may also set limits on the number of students in a course.