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78122 Corporate Insolvency

Warning: The information on this page is indicative. The subject outline for a particular semester, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

UTS: Law
Credit points: 6 cp

Subject level:

Postgraduate

Result type: Grade and marks

Requisite(s): (78101c Postgraduate Legal Research OR ((102 credit points of completed study in C04236 Juris Doctor OR 102 credit points of completed study in C04250 Juris Doctor Master of Business Administration OR 22 credit points of completed study in C04147 Master of Legal Studies OR 22 credit points of completed study in C07074 Graduate Diploma Legal Studies)))
The lower case 'c' after the subject code indicates that the subject is a corequisite. See definitions for details.
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Anti-requisite(s): 78121 Corporate Insolvency

Handbook description

This subject aims to provide students with a detailed and practical understanding of the various insolvency and restructuring options that are available to companies in financial distress. 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 range of formal and informal debt restructuring techniques that may be used to assist a company in financial distress. Where relevant, the subject materials provide a comparison between Australia's corporate insolvency and restructuring laws and corresponding laws in Europe, North America and Asia.

Subject objectives

Upon successful completion of this subject students should be able to:

1. understand and apply corporate insolvency laws across a range of commercial situations involving all forms of business structures;
2. appreciate the commercial and legal issues that arise during times of financial difficulty;
3. identify and use electronic and paper-based information resources to locate relevant and up-todate legal materials to assist in resolving insolvency law problems;
4. identify and balance the competing interests of different stakeholders involved in an insolvent estate.

This subject also contributes specifically to the development of the following graduate attributes:

  • Legal Knowledge
    An advanced and integrated understanding of a complex body of legal knowledge including the Australian legal system, social justice, cultural and international contexts, the principles and values of ethical practice, and contemporary developments in law and its professional practice (1.0)
  • Critical Analysis and Evaluation
    A capacity to think critically, strategically and creatively including an ability to identify and articulate complex legal issues, apply reasoning and research to generate appropriate theoretical and practical responses, and, demonstrate sophisticated cognitive and creative skills in approaching complex legal issues and generating appropriate responses (3.0)
  • Self Management
    A high level of autonomy, accountability and professionalism, the ability to implement appropriate self-management and lifelong learning strategies including initiating self-directed work and learning, judgment and responsibility, self assessment of skills, personal wellbeing and appropriate use of feedback and, a capacity to adapt to and embrace change (6.0)

Content

1. Overview of corporate insolvency appointments
2. Informal workouts and restructuring
3. Liquidation
4. Voluntary administration
5. Deeds of company arrangement
6. Receivership

Assessment

Assessment task 1: Class participation

Objective(s):

This task contributes specifically to the development of the following graduate attributes:

1.0 and 3.0

Weight: 20
Length:

Equivalent to 1,000 words
Criteria:

Assessment Criteria:

  • Quality of contributions
  • Regular contributions in class and online
  • At least 2 quality contributions to each topic on UTSonline
  • The ability to build on the contributions of others
  • Demonstration of understanding of the reading material

Assessment task 2: Problem question

Objective(s):

This task contributes specifically to the development of the following graduate attributes:

1.0 and 3.0

Weight: 30
Length:

2,500 words
Criteria:

Assessment Criteria:

  • Identification of legal issues
  • Use of appropriate authorities to support arguments
  • Use of primary sources
  • Demonstration of critical perspectives and counter-arguments
  • Structure and writing style
  • Appropriate referencing

Assessment task 3: Research essay

Objective(s):

This task contributes specifically to the development of the following graduate attributes:

1.0, 3.0 and 6.0

Weight: 50
Length:

3,000 words
Criteria:

Assessment Criteria:

  • Identification of legal issues
  • Use of appropriate authorities to support arguments
  • Use of high quality secondary sources
  • Demonstration of critical perspectives and counter-arguments
  • Structure and writing style
  • Appropriate referencing

Required texts

Murray and Harris, Keay's Insolvency (7th ed, 2011, Thomsonreuters)

and

Corporations Act 2001 (Cth) (all major legal publishers produce an annual edition, only the 2013 and 2014 editions are suitable)

Recommended texts

Books

Symes C and Duns J, Australian Insolvency Law (2nd ed, 2012, LexisNexis Butterworths)

Finch V, Insolvency Law (2nd ed, 2009, Cambridge Uni Press-UK law)?

Goode R, Principles of Corporate Insolvency Law (4th ed, 2011, Sweet and Maxwell-UK law)

Jackson T, The Logic and Limits of Bankruptcy Law (Harvard Uni Press, 1986-US law)

Journals

Australian Insolvency Journal (IPAA, hard copy only)

?Company and Securities Law Journal (hard copy and Legal Online, Thomsonreuters)

?Insolvency Law Journal (hard copy and Legal Online, Thomsonreuters)?

Insolvency Law Bulletin (LexisNexis Butterworths, LexisNexis AU)?

Journal of Banking and Finance Law and Practice (hard copy and Legal Online, Thomsonreuters)

Overseas Journals

American Bankruptcy Institute Law Review (HeinOnline-US law)

Business Lawyer (LexisNexis-US law)?

Company Lawyer (Westlaw-UK law)?

Insolvency Institute of Canada (Westlaw-Canadian law)

Insolvency Intelligence (Westlaw-UK law)

Government Reports

The Harmer Report, Australian Law Reform Commission, General Insolvency Inquiry, Report number 45, 1988, AGPS, Canberra

Specialist works

Allens, Directors Duties During Insolvency (2nd ed, 2006, Lawbook Co)?

Anderson C and Morrison D, Crutchfield’s Voluntary Administration (Legal Online, Thomsonreuters)

?Ferrier Hodgson, Australian Insolvency Management Practice (Looseleaf and online, CCH)?

Gronow M, McPherson’s Law of Company Liquidation (Legal Online, Thomsonreuters)

?Keay A, Avoidance Provisions in Insolvency Law (1997, Lawbook Co)?

O'Donovan J, Company Receivers and Administrators (LegalOnline, Thomsonreuters)