Handbook 1996 : Faculty of Law (Volume 3 page 218)
Law subject : Next:730-314 | Prev:730-350 | Search | Help
Optional Law subject.
Prerequisite: Torts and the Process of Law; History and Philosophy of Law.
Corequisite: Corporations Law.
Contact: 2 hour lecture & 1 hour seminar per week
Timetable: Second semester
Objectives:
Students completing this subject should have: examined the principles of law which apply to the insolvency of both corporations and natural persons; understood the problems that arise in an insolvency situation from the viewpoint of secured and unsecured creditors, the insolvent person and insolvency administrators (including trustees in bankruptcy, liquidators and receivers and managers); considered the alternatives to bankruptcy and liquidation; understood the law which underlies the options available in a situation of insolvency; be able to give appropriate advice. The subject will, so far as possible, be taught from a practical as well as a theoretical standpoint.
Content:
What constitutes insolvency. Alternatives to bankruptcy or liquidation. The role of the Judgment Debt Recovery Act 1984 (Vic. ), informal moratorium on debt, supervised trading, administration under Bankruptcy Act 1966 (Cth. ) Part X, administration under Part 5.3A Corporations Law (introduced by the Corporate Law Reform Act 1992); schemes under Part 5.1.Bankruptcy or winding-up where a debtor is insolvent. The procedures involved; the appointment of an interim administrator by the Court and the role of the provisional liquidator, her/his powers and duties; Court appointed receivers; the appointment of a trustee in bankruptcy/liquidator and her/his powers and duties.
Avoidance of antecedent transactions, including voluntary settlements, fraudulent dispositions and voidable preferences and protective provisions; dealing with claims in the administration, including proofs of debt, mutual credit and set-off, ordering priorities between creditors, debt subordination; Romalpa clauses; dealing with the bankrupt and directors of the company being wound-up; disclaimer of onerous property; claims against directors, other corporate officers and third parties, including claims based on Barnes v Addy; claims under Corporations Law, s 588G.
The insolvency of particular persons, including corporate trading trusts, companies that carry on business in more than one jurisdiction.
The position of secured creditors - floating charges, fixed charges, appointment of receivers and managers, the appointment of controllers, liability of receivers and managers and controllers, the impact of Part 5.3A.
The responsibilities of lawyers acting for insolvent persons, creditors and insolvency administrators.
Assessment:
Research Paper 4,000 words (50 per cent) and Final Exam 2 hours (50 per cent); or Final Exam 3 hours (100 per cent).
Prescribed texts:
Law subject : Next:730-314 | Prev:730-350 | Search | Help
Handbook 1996 : Faculty of Law (Volume 3 page 218)
Status: Official 1996 Date created: Oct 9 1995 Last modified: Oct 9 1995 Authorised by: Academic Registrar Email enquiries: Course_Information@registrar.unimelb.edu.au
Maintained by: Faculty of Law.
Copyright © University of Melbourne 1995,1996.