Faculty of Law

Undergraduate - Unit

This unit entry is for students who completed this unit in 2013 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

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6 points, SCA Band 3, 0.125 EFTSL

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FacultyFaculty of Law
OfferedNot offered in 2013


This unit will introduce the students to the fundamental concepts, policies and mechanisms of corporate insolvency law. It will emphasize specifically the mechanisms designed for rescuing a firm as a going-concern. The unit will discuss formal insolvency proceedings as well as informal out-of-court negotiations between a firm and its creditors. The unit will focus on the following issues:

  1. introducing the various types of corporate insolvency proceedings;
  2. the legal requirements for initiation of each insolvency proceeding;
  3. management's fiduciary duties upon insolvency of the firm;
  4. the control of a firm while it undergoes an insolvency proceedings;
  5. advanced financial planning to combat corporate insolvency (bankruptcy remote
  6. ;
  7. a comparison between insolvency proceedings and out-of-court negotiations;
  8. the relationship between insolvency proceedings and a government bailout;
  9. the authorities of financial regulators upon a firm's insolvency;
    1. the moratorium against the firm's creditors;
  10. the avoiding powers in and insolvency proceeding;
  11. the priority between various types of creditors;
  12. prototypes of corporate rescue (reorganization or going-concern sales);
  13. creditors' representation and voting rights in a rescue regime.


The objectives of this unit are:

  • to introduce the students to the fundamental dilemmas of financially distressed firms;
  • to teach the available legal alternatives for resolving financial distress;
  • to expose the underlying policies of corporate insolvency law;
  • to elaborate on corporate creditors' rights; and
  • to provide a comparative perspective of corporate insolvency law.


Class participation: 10%, class test: 10% and examination (two and a half hours plus 30 minutes reading and noting time): 80%.

Chief examiner(s)

Contact hours

Students will be required to attend 36 hours of seminars, and undertake approximately an additional 108 hours of private study, including reading, class preparation, assignment preparation and exam revision time over the duration of the course.


LAW 4171 Corporations Law or equivalent