Outline

Overview

The unit provides an introduction to the mainly statutory law regulating bankrupt individuals and insolvent companies. It explores the objectives and key principles of insolvency law, the pari passu principle, the various forms of insolvent administration including bankruptcy, liquidation, receivership and voluntary administration and associated procedures together with the avoidance of transactions in insolvency. The unit also considers the impact of insolvency on employees, unsecured creditors, shareholders and trustee's of trusts. The unit involves a significant component of statutory interpretation.

Unit details and rules

Academic unit	Law
Credit points	6
Prerequisites ?	LAWS5014
Corequisites ?	None
Prohibitions ?	LAWS3403 or LAWS5103 or LAWS3445
Assumed knowledge ?	None
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Tony Ryan, tony.ryan@sydney.edu.au

Assessment

The census date for this unit availability is 2 April 2024

Details
Criteria

Type	Description	Weight	Due	Length
Supervised exam ?	Final exam (60%) Two problem questions	60%	Formal exam period	2.5 hours
Outcomes assessed:
Presentation	Class presentation (10%) Students will be on-call for 1 class during semester	10%	Ongoing	10 minutes (equivalent to 1000 words)
Outcomes assessed:
Assignment	Problem question (30%) Students will answer a hypothetical problem question on bankruptcy law	30%	Week 06 Due date: 25 Mar 2024 at 23:59 Closing date: 08 Apr 2024	2000 words / 5 weeks
Outcomes assessed:

Assessment summary

Class presentation (10%): Students will be on-call for 1 class during semester (selected by the unit coordinator). Students can be asked questions about cases and topics from the prescribed reading and will present for 10 minutes. Students who are unable to be present for their allocated on-call must apply for special consideration and if granted will be re-allocated to another class. A failure to attend and present in the on-call class may lead to an Absent Fail grade being awarded.

Problem question (30%): Students will complete an assignment in response to a problem based on the bankruptcy classes. The word limit is 2,000 words. The problem will be released at the beginning of Week 1 and will be due at 6:00pm on 25 March 2024, Sydney Australia time.

Final exam (60%): Students will complete a final exam held during the formal exam period. It will be based on two problem questions drawn from topics from the unit seminars. All topics are examinable. Students will have 2.5 hours plus 30 minutes reading time to complete the exam. Total duration is 3 hours. The exam will take place on-campus, supervised and handwritten pen to paper. It is an open book test, hard copy and or printed materials only, no electronic devices allowed.

Special consideration: Successful grants of Special Consideration may involve alternative tasks, as appropriate, which may include a viva voce (oral) exam.

Word limit penalty: A piece of assessment which exceeds the prescribed word limit will attract a penalty of 10% of the total marks available for the piece of assessment for every 100 words, or part thereof. The total word count for essay and other written assessments will exclude all footnotes and any bibliography (if required).

Use of editors and automated writing tools: In completing unsupervised assessments, students may use editors, proof-readers, and automated writing tools (including translation software, grammar checkers, reference generators and artificial intelligence), provided that all use is acknowledged and consistent with University policies and procedures including Academic Integrity Policy. Acknowledgment must be made in writing on the front of the work submitted for assessment, or in an appropriate footnote or other reference, and state the name of the person or software.

Assessment requirements to pass a unit of study: A student must make a genuine attempt at all assessment tasks set out in this Unit of Study in order to obtain a Pass mark and grade (or above); otherwise an Absent Fail grade will be recorded as the student’s result for this Unit of Study.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2021 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100	• Completely answers the question. • Contains striking originality of approach or analysis. • Demonstrates exhaustive or innovative research (where independent research required). • Exceptionally well written, structured and expressed. • Is otherwise exceptional in some way.
Distinction	75 - 84	• Completely answers the question. • Achieves a critical and evaluative approach to the issues. • Content and structure is well organised in support of the argument. • Demonstrates extensive research and analysis to support a well-documented argument. • Generally well expressed and free from errors. • Has a clear structure and is well articulated.
Credit	65 - 74	• Covers main issues fairly well in answering the question. • Contains no significant errors • Demonstrates an attempted critical approach to the issues. • Demonstrates reasonably sound research and analysis in addressing the key issues. • Has a clear structure and reasonably clear expression.
Pass	50 - 64	• Identifies the key issues, but does not follow through with a reasoned argument. • Contains some significant errors. • Displays satisfactory engagement with the key issues. • Offers descriptive summary of material relevant to the question. • Superficial use of material, and may display a tendency to paraphrase. • Demonstrates little evidence of in-depth research or analysis. • Adequate expression. • Overall, demonstrates the minimum level of competence in the assessment and satisfies the requirements to proceed to higher-level studies in the degree or subject area.
Fail	0 - 49	• Does not answer the question. • Contains significant or numerous errors. • Few or no identifiable arguments. • Content that is inappropriate or irrelevant. • Lack of research or analysis. • Difficult or impossible to understand through poor grammar, expression or structure. • Overall, does not demonstrate the minimum level of competence in the assessment.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

The late submission of a piece of assessment, which has not been granted an extension, will attract a penalty of 10% of the total marks available for the piece of assessment per calendar day or part thereof. For example, a submission after the due time but by 11.59pm on the due date will attract a 10% penalty. A submission after midnight of the due date for submission will attract a 20% penalty. A submission on the following day after midnight will attract a 30% penalty, and so on. Late penalties will be applied with a 10 minute grace period. The date and time of submission as recorded by Canvas is taken as the official and final record of a student’s submission.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Support for students

The Support for Students Policy 2023 reflects the University’s commitment to supporting students in their academic journey and making the University safe for students. It is important that you read and understand this policy so that you are familiar with the range of support services available to you and understand how to engage with them.

The University uses email as its primary source of communication with students who need support under the Support for Students Policy 2023. Make sure you check your University email regularly and respond to any communications received from the University.

Learning resources and detailed information about weekly assessment and learning activities can be accessed via Canvas. It is essential that you visit your unit of study Canvas site to ensure you are up to date with all of your tasks.

If you are having difficulties completing your studies, or are feeling unsure about your progress, we are here to help. You can access the support services offered by the University at any time:

Support and Services (including health and wellbeing services, financial support and learning support)
Course planning and administration
Meet with an Academic Adviser

Weekly schedule

WK	Topic	Learning activity
Week 01	Class 1. Introduction: History of Insolvency Law; Regulatory framework; Important legal concepts; Identifying solvency and insolvency	Seminar (3 hr)
Week 02	Class 2. Bankruptcy 1: Overview of bankruptcy; Commencing bankruptcy; Role and powers of trustees; Alternatives to bankruptcy	Seminar (3 hr)
Week 03	Class 3. Bankruptcy 2: Effect of bankruptcy on stakeholders; Antecedent transactions; Terminating bankruptcy	Seminar (3 hr)
Week 04	Class 4. Bankruptcy 3: Antecedent transactions; Terminating bankruptcy	Seminar (3 hr)
Week 05	Class 5. Liquidation 1: Commencing court liquidation; commencing voluntary liquidation; Independence of liquidations; Reporting and creditor meetings	Seminar (3 hr)
Week 06	Class 6. Liquidation 2: Powers of liquidators; Insolvent trading; Examinations; Proof of debt	Seminar (3 hr)
Week 07	Class 7. Liquidation 3: Voidable transactions; Ending liquidation and reinstatement of companies	Seminar (3 hr)
Week 08	Class 8. Voluntary administration 1: Overview of Pt 5.3A; Overview of Pt 5.3B; Appointing an administrator; Creditor meetings in administration	Seminar (3 hr)
Week 09	Class 9. Voluntary administration 2: The effect of administration on stakeholders; The role of the court	Seminar (3 hr)
Week 10	Class 10. Voluntary administration 3: Deeds of company arrangement (DOCAs)	Seminar (3 hr)
Week 11	Class 11. Receivership	Seminar (3 hr)
Week 12	Class 12. Schemes of arrangement; Workouts	Seminar (3 hr)
Week 13	Class 13. Cross border insolvency; Revision	Seminar (3 hr)

Attendance and class requirements

Attendance: All students are required to attend 70% of classes (or as otherwise specified by the Unit Coordinator) to satisfy the pass requirements for each unit of study. Attendance requirements may be satisfied by in person attendance as specified by the Unit Coordinator. Failure to meet this requirement may result in a student being precluded from sitting the final assessment. 

For units offered in Intensive mode, participation in all scheduled sessions may be expected by a Unit Coordinator in order to satisfy the requirements of the unit.

Referencing: The Sydney Law School expects you to use the Australian Guide to Legal Citation (4th edition, 2018) for your footnoting style, although you should confirm this with your lecturer, and a link to the library website where this is set out comprehensively is available at Referencing and Citation Styles: AGLC4 

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

Michael Murray and Jason Harris, Keay’s Insolvency: Personal and Corporate Law and Practice (Law Book Co. 11th ed 2022).

Students will also need to have access to an up to date copy of the Bankruptcy Act 1966 (Cth), the Corporations Act 2001 (Cth) and the Personal Property Securities Act 2009 (Cth).

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. accurately apply the key provisions of the Bankruptcy Act 1966 (Cth) and the Corporations Act 2001 (Cth) to common commercial situations concerning insolvency
LO2. appreciate the interrelationship between personal and corporate insolvency law and the general law
LO3. explain and synthesize the commercial and legal difficulties that can arise in times of financial stress
LO4. explain and synthesize the competing interests of stakeholders in common insolvency scenarios

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

No changes have been made since this unit was last offered.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Support for students

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect

Current students

LAWS5145: Insolvency Law

Semester 1, 2024 [Normal evening] - Camperdown/Darlington, Sydney

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Support for students

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect