Comparative Corporate Insolvency Law (LAWS90112)

This subject provides a comprehensive analysis of corporate insolvency law from a functional and comparative approach, with a particular focus on the insolvency and restructuring frameworks existing in the United States, the United Kingdom, Singapore, Australia, the European Union, and various emerging markets and developing economies from Asia, Africa and Latin America. 

It will be shown that, despite the legal, economic and institutional differences existing among countries, most insolvency systems seek to solve similar economic problems and they often use similar strategies to address those problems. Those strategies include the use of a moratorium, the availability of rescue financing, the existence of special rules for executory contracts and the approval of reorganisation plans, the avoidance of pre-bankruptcy transactions, and the imposition of special directors’ duties and liability in insolvency.  

This subject will also examine the treatment of micro- and small enterprises in insolvency as well as the challenges, problems and solutions to deal with situations of cross-border insolvency and multinational corporate groups. We will conclude by providing a critical assessment of the Australian insolvency system.  

Intended learning outcomes

A student who has successfully completed this subject will:

• Explain and analyse the goals and function of corporate insolvency law, and how insolvency law can foster entrepreneurship, access to finance and economic growth.
• Recognise the economic problems that insolvency law seeks to solve and assess how different jurisdictions address those problems.
• Examine the insolvency regimes that exist in various jurisdictions with different legal, market and institutional environments.
• Distinguish between different restructuring options available for the reorganisation of viable but financially distressed firms.
• Devise advise to companies and investors when assessing insolvency risks and dealing with a situation of insolvency in any jurisdiction.
• Evaluate the economic desirability of an insolvency regime and formulate recommendations on how countries can improve their insolvency systems.

Generic skills

• Have an advanced understanding of the central rules, policies and principles of insolvency law from a comparative perspective and of the economic and social objectives attributed to the insolvency law system
• Critically examine, analyse, interpret and assess the effectiveness of current insolvency laws and policies and be an engaged participant in debates regarding contemporary and emerging issues in the field such as involuntary bankruptcies, voidable preferences, director liability, equitable subordination and corporate rescue.
• Have the cognitive and technical skills to independently examine, research and analyse contemporary and emerging insolvency law issues and to be able to critically evaluate and compare various jurisdictional solutions to common insolvency law problems.