76115 Insolvency
Warning: The information on this page is indicative. The subject outline for a
particular session, 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.
Subject handbook information prior to 2017 is available in the Archives.
Credit points: 6 cp
Result type: Grade and marks
Requisite(s): 70417 Corporate Law OR 70327 Commercial Law
These requisites may not apply to students in certain courses. See access conditions.
Description
This subject provides an introduction into the protection and regulation of insolvent individuals and corporations. The subject aims to discuss insolvency within the social context and impact of insolvency law. Students examine the legal procedure involved in insolvency law (such as bankruptcy petitions, lodging proofs of debt and distribution of insolvent estates) as well as the impact of insolvency upon stakeholders such as employees, unsecured creditors, and individual and corporate debtors. Both individual and corporate insolvency are examined. All aspects of personal and corporate insolvency will be discussed but the subject places particular emphasis on discussing powers of insolvency administrators, voluntary administration, liquidation and the rights of creditors.
Subject learning objectives (SLOs)
Upon successful completion of this subject students should be able to:
| 1. | understand and apply 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 using 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. |
Course intended learning outcomes (CILOs)
This subject also contributes specifically to the development of the following graduate attributes:
- Legal Knowledge
A coherent understanding of fundamental areas of legal knowledge including the Australian legal system, social justice, cultural and international contexts and the principles and values of ethical practice. (1.0) - Critical Analysis and Evaluation
A capacity to think critically, strategically and creatively including an ability to identify and articulate legal issues, apply reasoning and research, engage in critical analysis and make reasoned choices. (3.0) - Communication and Collaboration
Effective and appropriate communication skills including highly effective use of the English language, an ability to inform, analyse, report and persuade using an appropriate medium and message and an ability to respond appropriately. (5.0)
Teaching and learning strategies
Strategy 1 Class discussion on weekly topics and problem questions
Strategy 2 Legal problem solving workshops
Strategy 3 Pre-class podcast
Strategy 4 Guest speaker presentations
Strategy 5 Online Activities
Subject Delivery
This subject is conducted with the aim of promoting student-centred learning in order to assist in the development of information literacy and analytical skills relevant to insolvency law. This aim will be achieved by requiring students to engage with the topics presented in the subject through independent research (usually on the internet) as part of the required weekly readings.
It is expected that students will have completed the required readings and attempted the questions in the course outline in advance of each class. This subject is worth 6 credit points, which means you should be spending on average 9 hours per week working on this subject (including attending class).
Assessment
Assessment task 1: Class participation
| Objective(s): | This task addresses the following subject learning objectives: 1 and 2 This task contributes specifically to the development of the following graduate attributes: 3.0 and 5.0 |
|---|---|
| Weight: | 25% |
Assessment task 2: Major Assignment
| Objective(s): | This task addresses the following subject learning objectives: 1, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 1.0, 3.0 and 5.0 |
|---|---|
| Weight: | 25% |
Assessment task 3: Final exam
| Objective(s): | This task addresses the following subject learning objectives: 1, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 1.0 and 3.0 |
|---|---|
| Weight: | 50% |
| Length: | There will be a strict page and word limit imposed. |
Required texts
- Michael Murray and Jason Harris, Keay’s Insolvency (Lawbook Co, 9th ed, 2016).
You will also need to have access to an up to date copy of the Corporations Act 2001 (Cth). It is strongly recommended that students purchase LexisNexis Butterworths, Australian Corporations Legislation 2016 (select the practitioner edition which has annotations) as this includes the full text of the Insolvency Law Reform Act.
You will also need access to the Bankruptcy Act 1966 (Cth). CCH publishes a hard copy of the Act, and LexisNexis Butterworths publishes an annotated version of the Act. Alternatively you can access it on ComLaw or AustLII.
Recommended texts
Books
- Harris, Gronow and Anderson, Insolvency Law: Commentary and Materials (2014, Thomsonreuters)
- Symes C and Duns J, Australian Insolvency Law (3rd ed, 2015, LexisNexis Butterworths)
- Brown D, Symes C and Wellard M, Australian Insolvency Law: Cases and Materials (2015, 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 Restructuring Insolvency & Turnaround Association Journal (formerly Australian Insolvency Journal) (available on Australian Public Affairs Informit database)
- Company and Securities Law Journal (Westlaw AU)
- Insolvency Law Journal (Westlaw AU)
- Insolvency Law Bulletin (LexisNexis AU)
- Journal of Banking and Finance Law and Practice (Westlaw AU)
Overseas Journals
- American Bankruptcy Institute Law Review (HeinOnline-US law)
- Business Lawyer (LexisNexis-US law)
- Company Lawyer (Westlaw UK)
- Insolvency Institute of Canada (Thomsonreuters Westlaw-Canadian law)
- Insolvency Intelligence (Westlaw UK)
Government Reports
- Productivity Commission, Business Set-up, Transfer and Closure (September 2015), http://www.pc.gov.au
- CAMAC, Report on Rehabilitating Large and Complex Enterprises in Financial Difficulties (October 2004) http://www.camac.gov.au
- Federal Parliamentary Joint Committee on Corporations and Financial Services, Corporate Insolvency Laws: a Stocktake (June 2004).
- The Harmer Report, Australian Law Reform Commission, General Insolvency Inquiry, Report number 45, 1988, AGPS, Canberra
Specialist works
- Anderson and Morrison, Crutchfield’s Voluntary Administration (Westlaw AU)
- Bigmore (ed), Bankruptcy Law and Practice (LexisNexis AU) (co-written by J Johnson)
- Murray and Taylor, Australian Insolvency Management Practice (CCH Intelliconnect)
- Gronow, McPherson’s Law of Company Liquidation (Westlaw Au)
- McQuade and Gronow, Australian Bankruptcy Law and Practice (Westlaw AU)
- O'Donovan, Company Receivers and Administrators (Westlaw AU)
Useful Websites
- Australian Securities and Investments Commission http://www.asic.gov.au
- Australian Restructuring, Insolvency and Turnaround Association http://www.arita.com.au
- Australian Financial Security Authority http://www.afsa.gov.au
References
N/A
