The course begins with an
overview of the functions of insolvency
procedures. It then examines, in the
context of winding-up, the relationship
between Insolvency Law and the general
law of property, contract, obligation, and the
extent to which Insolvency Law interferes
with rights accrued under the general law,
and examines the rationality of the legal
principles underlying the rules relating to the
treatment of claims and the distribution of
assists in winding up. The course then turns
to consider procedures that are capable
of securing the continuation of viable
businesses, often referred to as corporate
rescue. The most significant of these is the
administration procedure, but administrative
receivership, which it is gradually replacing, is
also still of some practical importance. They
raise interesting and complex questions
about the allocation of decision-making
power and the mechanisms for ensuring
the accountability of decision-makers. More
informal procedures, in particular schemes
of arrangement, are also considered.
Company Law also has a role to play in
relation to insolvent companies, raising in
particular such questions as the liability of a
parent for the debts of its subsidiary and the
responsibilities of directors under general
law and under insolvency legislation.
Prerequisites: LAW 305, LAW 404.
Language of Instruction: English (legal terms,
however, are also given in Arabic and French).