UWA Handbook 2024

Unit Overview

Description

This unit examines the way the law deals with individuals and companies are facing financial difficulty. The subject covers the options available under both the Bankruptcy Act and Corporations Act as well as looking at how cross-border insolvencies are recognised and fit within the Australian legal system. Issues covered include what happens and what ought to be done when an individual or company is approaching insolvency or has become insolvent. Students study the major forms of insolvency administration within the broader commercial and social context of business failure, including the impact of insolvency on secured and unsecured creditors, employees and other stakeholders. Students are given the opportunity to refine their skills in problem solving and to develop critical perspectives on insolvency law. This unit examines (1) forms on insolvency administrations for individuals including bankruptcy; (2) the various forms of external administration of insolvent companies including liquidation ,voluntary administration receiverships and schemes of arrangements; (3) the impact of insolvency on, and the rights of, secured and unsecured creditors, employees and other stakeholders; (4) the powers and duties of the different types of insolvency administrators; and (5) cross-border insolvency issues and the role of recognition of overseas insolvency administrations.

Credit

6 points

Outcomes

Students are able to (1) identify the similarities, differences and relationship between the various forms of external administration of insolvent companies and individuals; (2) appreciate the commercial and legal issues that affect companies, and people who deal with them, during times of financial difficulty; (3) identify and balance the competing interests of different stakeholders involved in an insolvent estate; (4) demonstrate their understanding of personal and corporate insolvency laws by applying those laws to identify and solve problems across a range of commercial situations; and (5) evaluate and critically assess the effectiveness of existing law in balancing the competing interests of different stakeholders involved in an insolvent case.

Assessment

Indicative assessments in this unit are as follows: (1) class participation; (2) personal insolvency assignment; and (3) corporate insolvency assignment. If student numbers exceed a manageable level then an examination may replace the final assignment.. Further information is available in the unit outline.

Student may be offered supplementary assessment in this unit if they meet the eligibility criteria.

Unit rules

Prerequisites

Juris Doctor (JD) students: LAWS4101 Foundations of Law and Lawyering
and 30 points from: LAWS4102 Criminal Law, LAWS4103 Contract, LAWS4104 Property, LAWS4106 Torts, LAWS4107 Land Law, LAWS4108 Foundations of Public Law, LAWS5106 Legal Theory and Ethics
or LAWS4109 Legal Theory and Ethics

Incompatibility

LAWS3312 Corporate Insolvency

Advisable prior study

LAWS5103 Equity and Trusts, LAWS4104 Property, LAWS4103 Contract

Recommended reading

Bankruptcy Act 1966 (Cth)

Corporations Act 2001 (latest ed.)

Harris, J., Gronow, M., and Anderson, H. Insolvency Law: Commentary and Materials: Lawbook Co. 2015

Murray, M. and Harris, J. Keay’s Insolvency: Personal and Corporate Law and Practice, 8th edn: Thomson Reuters 2013 (or latest ed.)