77730 Corporate Insolvency and Restructuring

This subject examines how the law deals with the problem of companies in financial difficulty. The aim of the subject is to provide students with a practical understanding of the various insolvency and restructuring options that are available to insolvent companies. The discussion of corporate insolvency laws is placed within the broader commercial and social context of business failure, including the impact of insolvency on secured and unsecured creditors, employees and tort victims. In particular, this subject discusses the growing importance of laws promoting corporate rescue for companies in financial distress, providing a particular focus on the voluntary administration regime.

Where relevant, the subject materials provide a comparison between Australia's corporate insolvency laws and corresponding laws in Europe and North America.

The topic areas discussed in this subject include:

• the role and function of corporate insolvency law
• the duties and powers of insolvency practitioners
• voluntary administration
• receivership
• liquidation
• directors' duties during insolvency
• the rights and powers company creditors
• the impact of insolvency law on corporate stakeholders
• the problems posed by insolvent corporate groups.

This subject assumes that students have undertaken foundational study in corporate law and builds upon topics completed in that study including the significance of separate legal entity and limited liability doctrines, directors' duties and corporate fundraising.