Glossary

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Insolvency Law - LAWS3014

Faculty: Faculty of Law

School: Faculty 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-requisites: Equity & Trusts (LAWS2385/JURD7285) and Business Associations (LAWS1091/JURD7224) OR Property, Equity & Trusts 1 (LAWS2381/JURD7281) and Business Associations 1 (LAWS2010/JURD7224).

Excluded: JURD7414, LAWS3130, LAWS3144, LAWS8194

CSS Contribution Charge: 3 (more info)

Tuition Fee: See Tuition Fee Schedule

Further Information: See Class Timetable

View course information for previous years.

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

LAWS2010 Business Associations 1 and LAWS1072 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

20% - Case Note Assignment: Details at the commencement of the semester

30% - Mid-Term Open Book Assessment

50% - Final Take-Home Assessment

Course Texts