LAWS6159 - Corporate Insolvency Law

Objectives

Examine the law, policy and practice of corporate insolvency, under the Corporations Act 2001.

Content

The purposes of insolvency law, including debtor protection, access of creditors to the debtor’s assets and assets disposed of, the need for investigation of financial failure, and financial reconstruction and survival; the principles of insolvency law including the pari passu principle of equal sharing, and exceptions to that principle, collectivism, compulsion and maintenance of creditors’ pre insolvency rights; the processes used by a creditor to commence insolvency proceedings to a winding up order in corporate insolvency under the Corporations Act; the nature of property that is available to creditors in liquidation; processes for identifying the property which may be available to creditors under a company liquidation; voidable transactions in a company liquidation under the equivalent corporate regime; other proceedings which may be available to augment the assets of the company which will be available to satisfy creditors’ claims; the involvement of unsecured creditors through meetings of creditors, funding of litigation, and committees of inspection, and the responsibilities of the liquidator to those creditors; the liability of directors and company controllers in company insolvency, in particular their liability for insolvent trading and their personal liability for taxes; the general duties and powers of the liquidator, and their regulation by AS IC; receiverships and the interaction of insolvency and the rights of creditors with quasi-security and security; the voluntary administration regime under Part 5.3A of the Corporations Act, and its interaction with liquidation and receivership; voluntary Administration and Schemes of Arrangement under Part 5.1 of the Corporations Act as a mechanism for restructuring the affairs of an insolvent company; issues affecting the informal restructuring the affairs of an insolvent company; current reform and policy considerations – CA MAC reports, Senate committee Report 2004, ALRC reports; and Cross-border insolvency.

Session

Semester 2 Intensive
30-31 July & 6-7 August 2010

The timetable is subject to frequent changes. Please refer to the latest version of the Postgraduate Timetable.

Assessment

1 x Take Home Exam (100%)

Assumed Knowledge

LAWS6810 - Introductory Corporate Law or background in Australian corporate law.

Courses this unit is available in

Sydney Law School