79033 Insolvency Administration

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 2024 is available in the Archives.

UTS: Law
Credit points: 6 cp
Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Description

Students completing this subject explore the law relating to the regulation of insolvent individuals and the procedures relating to the administration of companies undergoing external administration. Students examine the legal procedures 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 or corporate players. Particular emphasis is placed on the various methods of administering insolvent estates including 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.	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 balance the competing interests of different stakeholders involved in an insolvent estate;
4.	Construct and present clear, critical and persuasive written and oral arguments that conform with the Faculty’s preferred referencing style (AGLC3).

Contribution to the development of graduate attributes

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: Student preparation

Students complete assigned readings and other preparatory activities prior to attending class. The Program (below) provides subject sources that students should view, listen to or read, and reflect upon. Preparation enables students to engage in class discussion and to ask questions of the lecturer. Students also engage in independent research and reflection following up on topics discussed in class and, in this way, integrating their learning in each topic.

Strategy 2: Participation in seminar-style lectures

The focus of the learning process is to expose students to the fundamental conceptual and technical material through lectures. Theoretical material and illustrations of developments in practice will be covered. This content will be supported by a combination of practical exercises, case studies and discussion exercises.

There may be guest lectures by specialists in insolvency to present an industry perspective on insolvency practice including discussion of employment opportunities within the industry.

Students are encouraged to ask questions. Discussion in class greatly facilitates individual learning, not only by students but also by the lecturer. Interactive lectures provide an opportunity for students to build on their independent study and critically explore, analyse and reflect upon a range of relevant issues as well as to develop and evaluate their own policy and regulatory approach. Students will be able to gain valuable feedback from their colleagues and the teacher and at the same time develop a sense that solutions can be discerned by collaborative exchanges.

Strategy 3: Group presentations

Students participate in an independent research exercise where they explore selected material in greater depth. At the beginning of the session students are allocated to small groups and the groups are invited to choose a research topic from a list provided by the lecturer. Students explore their allocation topic in groups and present their group findings in class together with a written group report. Presentations take place weekly, starting in Week 4, according to allocations made at the beginning of the session. Students gain collaborative work skills and collaborative problem- solving skills from the experience of working together.

Strategy 4: Feedback

Detailed guidance as to the assessment criteria and the provision of timely feedback are an important part of the learning process. Students receive early and ongoing feedback on their preparation and participation in seminars from the teacher and also from peers who respond to their contributions. In addition, individual formative feedback is provided on students’ seminar participation and on students’ performance in the group presentation. Feedback also comes from a student’s own reflection on their performance with reference to the subject objectives and assessment criteria.

Subject delivery: This subject is delivered in 3-hour weekly seminar-style lectures

Content (topics)

Topic 1 – Introduction

Topic 2 – Voluntary Administration (Part 1)

Topic 3 – Voluntary Administration (Part 2)

Topic 4 – Liquidation (Part 1)

Topic 5 – Liquidation (Part 2)

Topic 6 – Receivership

Topic 7 – Duty of Directors to prevent insolvency trading

Topic 8 - Personal Insolvency (Part 1)

Topic 9 - Personal Insolvency (Part 2)

Topic 10 – Alternatives to Bankruptcy

Topic 11 – Cross – Border Insolvency

Assessment

Assessment task 1: Class Participation

Weight:	20%
Length:	N/A
Criteria:	Appreciates commercial and legal issues arising during financial difficulty (SLO2,GA3). Identifies and addresses the competing interests of the stakeholders in an insolvent estate (SLO3, GA 3). Speaks in a clear, logical, succinct and persuasive manner (SLO4,GA5). Actively engages in discussion, contributing informed viewpoints and responding appropriately to the contributions of peers (SLO4, GA5). Regular contributions that build on previous points made and relate the issues considered to current events and developments (SLOs 2 and 3, GAs 3 and 5).

Assessment task 2: Goup Presentation and Report

Weight:	30%
Length:	2000 words
Criteria:	Applies insolvency laws across a range of commercial situations involving all forms of business structures (SLO1, GAs1 and 3). Appreciates the commercial and legal issues that arise during times of financial difficulty (SLO2,GA3). Identifies and balances the competing interests of different stakeholders involved in an insolvent estate (SLO3, GAs1 and 3); Construct and present clear, critical and persuasive written and oral arguments that conform with the Faculty’s preferred referencing style (AGLC3) (SLO4, GAs3 and 5).

Assessment task 3: Final Examination

Weight:	50%
Length:	2200 words: see Further Information below
Criteria:	Applies insolvency laws across a range of commercial situations involving all forms of business structures (SLO1, GAs1 and 3). Appreciates the commercial and legal issues that arise during times of financial difficulty (SLO2,GA3). Identifies and balances the competing interests of different stakeholders involved in an insolvent estate (SLO3, GAs 1 and3); Constructs and presents clear, critical and persuasive written and oral arguments (SLO4, GAs 3 and5).

Required texts

Christopher Symes, David Brown & Sulette Lombard, Australian Insolvency Law, 5th edition (LexisNexis Australia, 2023)

You will also need to have access to a current copy of the Corporations Act, 2001 (Cth) and the Bankruptcy Act 1966 (Cth).

Recommended texts

C. Symes and D. Brown, Australian Insolvency Law, Cases and Materials, 2nd edition (LexisNexis Australia 2023)

J. Harris, A Hargovan and M Adams, Australian Corporate Law, 6th edition (Lexusnexus Butterworths Australia, 2017)

M. Quilter, Company Law Perspectives, 4th edition (Law book Company, 2020)

References

Books (Always ensure that you obtain the most recent edition of the reference)

M. Murray and J. Harris, Keays Insolvency, Personal and Corporate Law and practice, 11th edition (Thomson Reuters Lawbook Co 2022)

Vanessa Finch, Insolvency Law (Cambridge Uni Press,

Roy Goode, Principles of Corporate Insolvency Law (Sweet and Maxwell),

F.L. Clarke, G.W. Dean, K.G. Oliver, Corporate Collapse (Cambridge University Press).

O.P. Kharbanda and E. A. Stallworthy, Company Rescue (Kogan Page),

Edward L Altman, Corporate Financial Distress: A Complete Guide to Predicting, Avoiding and Dealing with Bankruptcy (Wiley).

Journals

Australian Insolvency Journal (IPAA, hard copy only)

Company and Securities Law Journal (hard copy and Lawbook Company Online)

Insolvency Law Journal (hard copy and Lawbook Company Online)

Insolvency Law Bulletin (LexisNexis Butterworths, hard copy only)

Government Reports

Corporations and Markets Advisory Committee (CAMAC), Report on Rehabilitating Large and Complex Enterprises in Financial Difficulties (2004) http://www.camac.gov.au.

Federal Parliamentary Joint Committee on Corporations and Financial Services, Corporate Insolvency Laws: a Stocktake (2004).

Australian Law Reform Commission, The Harmer Report, General Insolvency Inquiry, Report No 45, 1988.

Other

C. Anderson and D Morrison, Crutchfield’s Voluntary Administration (Thomson Reuters - latest edition). N Coburn, Coburn’s Insolvent Trading (Lawbook Company).

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

M. Gronow, McPherson’s Law of Company Liquidation (Lawbook Company). A Keay, Avoidance Provisions in Insolvency Law (Lawbook Company).

J O’Donovan, Company Receivers and Administrators (Loose-leaf and Lawbook Co Online)

Other resources

Useful Websites
Australian Securities and Investments Commission
http://www.asic.gov.au
Insolvency Practitioners Association of Australia
http://www.ipaa.com.au
Insolvency and Trustee Service Australia
http://www.itsa.gov.au

Australian Restructure Insolvency and Turnaround Association

http://www.arita.com.au

Turnaround Management Association

http://www.turnaround.org.au