COURSE INFORMATION

1 . Name of Course Law of Insolvency

2 . Course Code UIS4612
3 . Type of Course Core
(e.g. : Core, major, elective etc.)
4 . Synopsis The course exposes sudents to the law and practice relating to insolvency covering
both bankruptcy and companies winding-up. Students are made to understand the
law and procedure as well as the relevant court documents.

5 . Version Current: September 2020

(State the date of theSenate’s approval - previous and the current approval date) Previous: June 2017, June 2016, May 2013.

6 . Name(s) of Academic Staff Dr. Gita Radhakrishna

Wong Hua Siong
7 . Semester and Year Offered Trimester 2, Epsilon (Fourth) Year.
8 . Credit Value 3
9 . Pre-Requisite Requirement for Registration:
UCL3622
10 . Objective of the course in the programme:
The objectives of this course are to further enhance the understanding of the basic legal principles on the substantive and procedural laws relating to bankruptcy and companies winding-
up proceedings.
11 . Justification for including the course in the programme:
This is a fundamental body of knowedge in MQA's Programme Standards for Bachelor of Laws (Professional Year)

12 . Course Learning Outcomes (CLO) Domain Level

CLO1: Evaluate the law of bankruptcy and companies winding up.
Cognitive 4

CLO2: Apply the general rules and regulations on companies winding-up

Cognitive 3

CLO3: Differentiate the substantive and procedural laws on bankruptcy and winding-up
Affective 3

CLO4: Identify the laws relating to bankruptcy and winding-up proceedings to represent and
defend concerned parties in such proceedings Affective 4

13 . Mapping of the Course Learning Outcomes to the Programme Learning Outcomes, Teaching Methods and Assessment:

Course Learning Programme Learning Outcomes (PLO) Teaching Methods Assessment Method

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 Outcomes (CLO)
(Must tally with CLOs in P P P
item 12) P P P P P P P P P L L L
L L L L L L L L L O O O
O O O O O O O O O 1 1 1
1 2 3 4 5 6 7 8 9 0 1 2
CLO1 Lectures & Tutorials Midterm Test, Final Exam

CLO2 Tutorials Final Exam

CLO3 Case Study, Project, Tutorial, Group Project/Portfolio 1

Work
CLO4 Case Study, Project, Tutorial, Group Project/Portfolio 2

Work
Indicate the relevancy between the CLO and PLO by ticking “ ” the appropriate relevant box
Total 1 1 1 1 (This description must be read together with standards 2.1.2, 2.2.1, and 2.2.2 in Area 2 – pages
16 & 18 of COPPA 2.0)

14 . Transferable Skills:
Problem Solving and Scientific Skills; Managerial and Entrepreneurship Skills; Social Skills and Responsibilities.

15 . Distribution of Student Learning Time (SLT)

Teaching and
Learning Activities Guided Independent
Course Content Outline **CLO Guided Learning Learning Learning Total SLT
(F2F)* (NF2F)* (NF2F)*
*L *T *P *O

Introduction to Insolvency Law;

Definition of insolvency; objectives of the law; parties to the
1 proceedings; elaboration on bankruptcy proceedings; CLO1 2 1 3 6
negative effect of the proceedings Voluntary
Arrangement - pre-bankruptcy rescue mechanism

Insolvency: Individual: Bankruptcy Notice:

Definition of bankruptcy notice; requirements under the Act;
2 Formalities to issue the notice and limitation of issuing; CLO1 2 1 3 6
defect of irregularities; setting aside and the procedures to
set aside the notice; setting aside bankruptcy notice

Bankruptcy Petition:
Types of bankruptcy petition; requirements; procedures to
3 file the petition; hearing of the petition, adjournment; CLO1, CLO3 2 0.5 0.5 3 6
reinstatement of creditor’s petition; and grounds of
opposing the petition.

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 Bankruptcy Order
The Bankruptcy Order; Effect of a bankruptcy order; cause
of action vested with the Director General of Insolvency;
Meaning of action ‘in section 38(1)(a); recession of a
receiving order.
4 CLO1, CLO3 2 0.5 0.5 3 6
Bankruptcy Order may be annulled, effect of annulment,
effect of bankruptcy order; properties that do not pass to
Director General of Insolvency; proceeding consequent to
bankruptcy Order.

Voluntary Settlement & Composition or Scheme of

Arrangement
Avoidance of preference in certain cases; protection of
5 CLO1, CLO3, CLO4 2 0.5 0.5 3 6
bona fide transaction without notice; doctrine of relation
back; definition and procedures of composition or scheme
of arrangement.
Discharge of Bankrupt
Discharge by court order; discharge by certificate of
6 CLO1, CLO3, CLO4 2 0.5 0.5 3 6
Director General of Insolvency; effect of discharge;
payment by third party; annulment.
Companies Winding-up
Definition of winding up; types of winding
up; purpose and applicable law. Members Voluntary
7 CLO1, CLO2 2 1 3 6
winding-up, Creditors voluntary winding-up and compulsory
or Court ordered winding up

Power of the Court in Winding-up Proceedings

Powers of Court on Hearing the Petition for Winding-up
8 CLO1, CLO2 2 1 3 6
Power to grant a 'Stay' or injunction. Suing for Malicious
prosecution.

Compulsory winding-up
Procedure on Compulsory winding-up. Presumption of
9 inability to pay debts. Grounds for setting aside a creditor's CLO1, CLO2, CLO3 2 0.5 0.5 3 6
petition. Can a winding-up Order be set aside? Termination
of winding-up.

Corporate Rescue Mechanisms

10 Scheme of Arrangement, Judicial Managemnent and CLO1, CLO2, CLO3, CLO4 2 0.5 0.5 3 6
Corprorate Voluntary Arrangement.

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 Receivers and Liquidators
Comparison, appointment, duties and
11 responsibilities.Receivership and winding-up. Recovery CLO1, CLO3, CLO4 2 0.5 0.5 3 6
and distribution of assets. Undue preference and voidable
transactions.

Termination of Winding-up.
12 Proof of debt and priority of claims. Release of liquidators CLO1, CLO3, CLO4 2 0.5 0.5 3 6
and dissolution of company

Winding-up on other grounds.

13 Winding-up on just and equitable principles, unfair and CLO1, CLO3, CLO4 2 0.5 0.5 3 6
unjust, oppression
Total SLT 78

SUMMATIVE ASSESSMENT
1. Continuous Assessment Percentage % Total SLT
Midterm Test 10% 4
Project/Portfolio 1 20% 5
Project/Portfolio 2 20% 10

Total SLT for Continuous Assessment 19

Total SLT
2. Final Assessment Percentage %
F2F ILT
Final Exam 50% 3 20
Total SLT for Final Assessment (F2F + NF2F) 23

Grand Total 100% 120

**Indicate the CLO based on the CLO’s numbering in Item 12.
*L= Lecture, *T= Tutorial, *P= Practical, *O= Others, F2F*= Face to Face, NF2F*= Non Face to Face

16 . Identify Special Requirement to Deliver the Course (e.g., software, nursery, computer lab, simulation room):NIL

17 . Main References:

Khoo Kay Ping, Khoo’s Law and Practice of Bankruptcy in Malaysia (2nd edn Lexis Nexis, Kuala Lumpur 2003),
K V Padmanabha Rau, Winding-Up of Companies (Cases and Commentaries) (ILBS, Kuala Lumpur 2000),
Gita Radhakrishna,'Insolvency Law: Bankruptcy and Companies Winding-up (CLJ, Kuala Lumpur 2019).

18 . Additional References:

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 Paul P Subramaniam, Bankruptcy Handbook, (2nd edn MLJ, Kuala Lumpur 2004),
Kala Anandarajah, Law and Practice of Bankruptcy in Singapore and Malaysia (Butterworth Asia, Kuala Lumpur1999),
Ganeson, G. K., Bankruptcy law in Malaysia and Singapore: a sourcebook of principles, practice (2001),
Alex Chang Huey Wah, Companies Winding-Up Handbook, (MLJ, Kuala Lumpur 2003),
Ian Fletcher, Law of Insolvency (Sweet & Maxwell, London 2002),
Roy Goode, Principles of Corporate Insolvency (Sweet & Maxwell, London 2011).

Statute:
Insolvency Act 1967
Insolvency Rules 2017
Insolvency Voluntary Arrangement Rules 2017
Companies (Winding up ) Rules 1972
Rules of Court 2012
Companies Act 2016

Note:
Cells shaded light grey contain formulas / fixed values. Edit these formulas only if needed.

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