MRL3701/001/4/2012
DEPARTMENT OF MERCANTILE LAW
MODULE: INSOLVENCY LAW
MODULE CODE: MRL3701 (MRL301M)
Contents
Only Study Guide for MRL3701 (MRL301M)
The purpose of this Study Guide is to lead you through
the prescribed textbook and the prescribed cases.
USE THIS STUDY GUIDE with Sharrock et al Hockly’s Insolvency Law 8 ed
(2006), the current version of the prescribed textbook for this module.
,ii
, iii MRL3701/001
CONTENTS
INSOLVENCY LAW – MRL3701 (MRL301M)
OVERVIEW .................................................................................................................. 1
INTRODUCTION TO THE MODULE...................................................................................... 7
Study unit 1
INTRODUCTION TO INSOLVENCY LAW ................................................................. 11
The scenario involving Tenza .......................................................................... 12
Study unit 2
VOLUNTARY SURRENDER ...................................................................................... 20
Study unit 3
VOLUNTARY SURRENDER ...................................................................................... 26
Study unit 4
COMPULSORY SEQUESTRATION ......................................................................... 36
Study unit 5
COMPULSORY SEQUESTRATION ......................................................................... 48
Study unit 6
THE LEGAL POSITION OF THE INSOLVENT ......................................................... 57
Study unit 7
VESTING OF THE ASSETS OF THE INSOLVENT ................................................... 67
Study unit 8
VESTING OF THE ASSETS OF THE SOLVENT SPOUSE ...................................... 75
Study unit 9
UNCOMPLETED CONTRACTS AND LEGAL PROCEEDINGS NOT YET FINALISED
.................................................................................................................................... 81
, iv
Study unit 10
UNCOMPLETED CONTRACTS AND LEGAL PROCEEDINGS NOT YET FINALISED
................................................................................................................................... 93
Study unit 11
UNCOMPLETED CONTRACTS AND LEGAL PROCEEDINGS NOT YET FINALISED
................................................................................................................................. 101
Study unit 12
MEETINGS OF CREDITORS AND PROOF OF CLAIMS ....................................... 108
Study unit 13
THE ELECTION OF THE TRUSTEE ....................................................................... 113
Study unit 14
IMPEACHABLE DISPOSITIONS — INTRODUCTION, AND DISPOSITIONS MADE
NOT FOR VALUE .................................................................................................... 121
Study unit 15
VOIDABLE DISPOSITIONS — VOIDABLE AND UNDUE PREFERENCE,
COLLUSIVE DEALINGS AND THE ACTIO PAULIANA.......................................... 133
Study unit 16
IMPEACHABLE DISPOSITIONS — TRANSFER OF BUSINESS WITHOUT
PRESCRIBED NOTICE ........................................................................................... 145
Study unit 17
CREDITORS’ CLAIMS AND THEIR RANKING — THE DIFFERENT TYPES OF
CREDITORS ............................................................................................................ 151
Study unit 18
CREDITORS’ CLAIMS AND THEIR RANKING — THE ORDER OF RANKING FOR
PAYMENT ................................................................................................................ 162
Study unit 19
COMPOSITION ........................................................................................................ 171
DEPARTMENT OF MERCANTILE LAW
MODULE: INSOLVENCY LAW
MODULE CODE: MRL3701 (MRL301M)
Contents
Only Study Guide for MRL3701 (MRL301M)
The purpose of this Study Guide is to lead you through
the prescribed textbook and the prescribed cases.
USE THIS STUDY GUIDE with Sharrock et al Hockly’s Insolvency Law 8 ed
(2006), the current version of the prescribed textbook for this module.
,ii
, iii MRL3701/001
CONTENTS
INSOLVENCY LAW – MRL3701 (MRL301M)
OVERVIEW .................................................................................................................. 1
INTRODUCTION TO THE MODULE...................................................................................... 7
Study unit 1
INTRODUCTION TO INSOLVENCY LAW ................................................................. 11
The scenario involving Tenza .......................................................................... 12
Study unit 2
VOLUNTARY SURRENDER ...................................................................................... 20
Study unit 3
VOLUNTARY SURRENDER ...................................................................................... 26
Study unit 4
COMPULSORY SEQUESTRATION ......................................................................... 36
Study unit 5
COMPULSORY SEQUESTRATION ......................................................................... 48
Study unit 6
THE LEGAL POSITION OF THE INSOLVENT ......................................................... 57
Study unit 7
VESTING OF THE ASSETS OF THE INSOLVENT ................................................... 67
Study unit 8
VESTING OF THE ASSETS OF THE SOLVENT SPOUSE ...................................... 75
Study unit 9
UNCOMPLETED CONTRACTS AND LEGAL PROCEEDINGS NOT YET FINALISED
.................................................................................................................................... 81
, iv
Study unit 10
UNCOMPLETED CONTRACTS AND LEGAL PROCEEDINGS NOT YET FINALISED
................................................................................................................................... 93
Study unit 11
UNCOMPLETED CONTRACTS AND LEGAL PROCEEDINGS NOT YET FINALISED
................................................................................................................................. 101
Study unit 12
MEETINGS OF CREDITORS AND PROOF OF CLAIMS ....................................... 108
Study unit 13
THE ELECTION OF THE TRUSTEE ....................................................................... 113
Study unit 14
IMPEACHABLE DISPOSITIONS — INTRODUCTION, AND DISPOSITIONS MADE
NOT FOR VALUE .................................................................................................... 121
Study unit 15
VOIDABLE DISPOSITIONS — VOIDABLE AND UNDUE PREFERENCE,
COLLUSIVE DEALINGS AND THE ACTIO PAULIANA.......................................... 133
Study unit 16
IMPEACHABLE DISPOSITIONS — TRANSFER OF BUSINESS WITHOUT
PRESCRIBED NOTICE ........................................................................................... 145
Study unit 17
CREDITORS’ CLAIMS AND THEIR RANKING — THE DIFFERENT TYPES OF
CREDITORS ............................................................................................................ 151
Study unit 18
CREDITORS’ CLAIMS AND THEIR RANKING — THE ORDER OF RANKING FOR
PAYMENT ................................................................................................................ 162
Study unit 19
COMPOSITION ........................................................................................................ 171
