Overview
This course examines the legal framework governing corporate financial distress, insolvency proceedings, restructuring, liquidation, and accountability for corporate misconduct. It covers insolvency tests, creditor priorities, secured and unsecured claims, statutory moratoria, administration, receivership, liquidation, corporate rescue, schemes of arrangement, restructuring plans, and cross-border insolvency principles.
Students analyse directors’ duties near insolvency, wrongful and fraudulent trading, fiduciary breaches, misfeasance, transactions at undervalue, preferences, asset stripping, veil lifting, and personal liability of officers and professionals. The course considers the roles and powers of insolvency practitioners, courts, creditors’ committees, shareholders, regulators, and employees, with comparative attention to international cooperation, recognition of foreign proceedings, enterprise preservation, employment protection, creditor recovery, and responsible risk-taking.
Learning Outcomes
- Diagnose legal issues arising from corporate financial distress and insolvency proceedings.
- Classify and prioritise secured, unsecured, preferential, and subordinated claims under applicable statutory frameworks.
- Evaluate restructuring, administration, receivership, liquidation, schemes of arrangement, and restructuring plan options.
- Interpret and apply statutory provisions, leading case law, and cross-border insolvency principles.
- Assess corporate, director, officer, and professional liability for misconduct connected with insolvency.
- Prepare commercially realistic advice for creditors, directors, insolvency practitioners, and distressed companies.
- Develop ethically defensible strategies that balance creditor recovery, enterprise preservation, employee interests, and regulatory obligations.
Timetable
| Type | Length | Frequency | Period |
|---|---|---|---|
| Lecture | 2 hours | Weekly | All semester |
| Tutorial | 1 hour | Weekly | All semester |
| Workshop | 2 hours | Fortnightly | All semester |
| Seminar | 2 hours | Fortnightly | All semester |
Assessment Schedule
| Type | Description | Weighting |
|---|---|---|
| Assignment | Problem-based insolvency analysis | 20.00% |
| Assignment | Creditor and director advice memorandum | 20.00% |
| Test | Insolvency law practical test | 20.00% |
| Attendance | Class participation and case preparation | 10.00% |
| Exam | Final examination | 30.00% |
Prerequisites
Teaching Staff & Programs
This course is delivered jointly by faculty from the participating programs listed below. In line with the Douchewater Way, the University of Sexology tailors core instruction directly to each cohort's specific discipline — adapting curriculum to program needs rather than forcing students into a one-size-fits-all model. Learn more about our approach at The Douchewater Way.
