78122 Corporate Insolvency
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particular session, location and mode of offering is the authoritative source
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Subject handbook information prior to 2025 is available in the Archives.
Credit points: 6 cp
Result type: Grade and marks
Requisite(s): ((22 credit points of completed study in spk(s): C07122 Graduate Diploma Legal Studies OR 22 credit points of completed study in spk(s): C04264 Master of Legal Studies)) OR ((94 credit points of completed study in spk(s): C04236 Juris Doctor OR 142 credit points of completed study in spk(s): C04250 Juris Doctor Master of Business Administration OR 94 credit points of completed study in spk(s): C04363 Juris Doctor Master of Intellectual Property OR 94 credit points of completed study in spk(s): C04364 Juris Doctor Graduate Certificate Trade Mark Law and Practice) AND 70106c Principles of Public International Law AND 70107c Principles of Company Law) OR (70106 Principles of Public International Law AND 94 credit points of completed study in spk(s): C04320 Juris Doctor Graduate Certificate Professional Legal Practice)
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. See access conditions.
Anti-requisite(s): 78121 Corporate Insolvency
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 learning objectives (SLOs)
Upon successful completion of this subject students should be able to:
| 1. | Demonstrate an advanced and integrated understanding and application of corporate insolvency laws across a range of commercial situations involving all forms of business structures; |
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| 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-to-date legal materials to assist in resolving insolvency law problems critically and creatively; |
| 4. | 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 which reflect the course intended learning outcomes:
- Legal Knowledge
An advanced and integrated understanding of a complex body of legal knowledge including:
a. The Australian colonial and post-colonial legal system, international and comparative contexts, theoretical and technical knowledge;
b. The broader contexts within which legal issues arise and the law operates including cultural awareness, social justice and policy;
c. The principles and values of justice and ethical practices in lawyers' roles;
d. The impact of Anglo-Australian laws on Indigenous peoples, including their historical origins in the process of colonisation and ongoing impact; and
e. Contemporary developments in law and its professional practice. (1.1) - Critical Analysis and Evaluation
A capacity to think critically, strategically and creatively, including an ability to:
a. Identify and articulate complex legal issues in context, including the skill of critical reading and writing;
b. Apply reasoning and research to generate appropriate theoretical and practical responses; and
c. Demonstrate sophisticated cognitive and creative skills in approaching complex legal issues and generating appropriate responses. (3.1) - Research Skills
Specialist cognitive and practical skills necessary to identify, research, evaluate and synthesise relevant factual, legal and policy issues including an ability to:
a. Demonstrate intellectual and practical skills necessary to justify and interpret theoretical propositions, legal methodologies, conclusions and professional decisions; and
b. Apply ethical research practices. (4.1) - Self-management
A high level of autonomy, accountability and professionalism and the ability to implement appropriate self-management and life-long learning strategies including:
a. An ability to initiate self-directed work and learning;
b. Well-developed judgment and responsibility;
c. The ability to support personal and professional development by:
- (i) Self-assessing skills and personal wellbeing; and
- (ii) Making appropriate use of feedback;
Teaching and learning strategies
Strategy 1 Preparation
By completing readings and preparatory work prior to each class, students establish a strong foundational understanding of key issues and controversies of corporate insolvency law. Preparation allows students to better engage with complex content. As part of preparation, students are required to respond to questions prior to class. Students receive ongoing feedback on their understanding of core concepts by active participation in class discussion, which involves engaging with the teacher and peers.
Strategy 2 Learning through simulated practice as a corporate insolvency lawyer
Throughout the session, students will engage with legal problems which simulate professional practice as a corporate insolvency lawyer. This facilitates the application of law in a professional context, and requires students to incorporate factors beyond the mere application of law to the facts – for example, stakeholder interests, client pressures, and regulatory context. Through this process, including collaborative discussions and group work, students develop interpretation, analysis and problem solving skills while advancing their legal knowledge of precedent cases and legislation.
Strategy 3 Mastery of a subject matter via research essay
Students achieve a sophisticated understanding of companies and securities law via completion of a research essay. By undertaking research into a specific area of companies and securities law, students are able to grasp and grapple with complex issues in the field, and make suggestions for improvements to the field.
Strategy 4 Feedback to encourage critical reflection and self-improvement
Feedback is provided throughout the session by teachers and peers. Feedback comes in a number of forms, including responses to completed preparatory questions and discussion during class. Students are also encouraged to deepen their understanding of subject content by posing questions to teachers and peers throughout the session. Formal feedback is provided by teachers for each assessment. Informal feedback is provided via in class and online discussion with peers and the teacher.
Content (topics)
- Overview of corporate insolvency appointments
- Informal workouts and restructuring
- Liquidation
- Voluntary administration
- Deeds of company arrangement
- Receivership
-
Insolvency and trusts
Assessment
Assessment task 1: Research essay
| Intent: | The research essay is an opportunity for students to demonstrate research skills and high level written communication skills in a topic of their own choice and receive feedback on the application of these skills to the chosen issue. |
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| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 1.1, 3.1, 4.1 and 8.1 |
| Weight: | 55% |
| Length: | 2,450 words |
| Criteria: | Assessment Criteria:
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Assessment task 2: Problem question
| Intent: | The written response to the problem question provides an opportunity to demonstrate the reasoning and skills in balancing the various interests in corporate insolvency and develop written communication skills and persuasive argument. |
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| Objective(s): | This task addresses the following subject learning objectives: 1, 2, 3 and 4 This task contributes specifically to the development of the following graduate attributes: 1.1, 3.1, 4.1 and 8.1 |
| Weight: | 45% |
| Length: | 1,950 words |
| Criteria: | Assessment Criteria:
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Required texts
Murray & Harris, Keay's Insolvency (10th ed, 2018, Thomson Reuters)
and
Corporations Act 2001 (Cth). All major legal publishers produce an annual edition; reference to the current version of the Act is essential (either the most recent edition by a legal publisher or an online version - eg, Federal Register of Legislation or UTS Library subscription service such as WestlawAU or LexisAdvance);
Corporations Regulations 2001 (Cth);
Insolvency Practice Rules (Corporations) 2016 (Cth).
Recommended texts
Books
Symes C, Brown D and Lombard S, Australian Insolvency Law (5th ed, 2023, LexisNexis Butterworths)
Murray M and Harris J. Keays Insolvency: Personal and Corporate Law (11th edition, 2023. Thomson Reuters)
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 and Turnaround Association Journal (previosuly 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 Butterworths, 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 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
Anderson C and Morrison D, Crutchfield’s Voluntary Administration (Westlaw AU)
Murray and Taylor, Australian Insolvency Management Practice (Looseleaf and online, CCH)
Gronow M, McPherson’s Law of Company Liquidation (Westlaw AU)
O'Donovan J, Company Receivers and Administrators (Westlaw AU)