MRL3701 – INSOLVENCY LAW

ONLINE TEACHING AND LEARNING

Learning Unit 2 and 3: Voluntary Surrender

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Dear Students,

I trust that you are well and that you are beginning to enjoy your studies in the Law of
Insolvency, finding it both interesting and rewarding! Remember my words… Stay strong,
stand tall, and never, never ever, give up!

We are also very excited to bring you along on this new teaching and learning experience. In
this regard, please see the important Lessons that has already been sent to you. You will find
all the materials posted under announcements. By now you should have also received (and
worked through) the following (but not limited to) materials:

1. Introductory Lessons and Administration

2. Learning Unit 1 Teachings
3. Learning Unit 1 Self-Test Questions
4. Learning Unit 1 Suggested Answers to the Questions
5. Learning Unit 1 Narrated Power Point Presentation

These above-mentioned materials will be sent to you every week, on every Learning Unit. This
is the way the module will be taught. Following the above mentioned teaching study plan
weekly will ensure that you take accountability for your own learning, that you stay on track
with your learning instead of cramming everything before your assessment or exam, and that
I may assist you in your learning throughout the semester.

NB NB NB! Please check your announcements posted regularly and ensure that you
keep up to date with your studies. I have had several students email me, only to indicate
to them that all the information they enquired about was already posted under
announcements. MyModules forms an important part of your study material, as this is
the only way for me to ensure effective communication with my students.

I will start scheduling Microsoft Teams classes towards mid-February. Make sure that you
regularly check on the announcements posted to ensure that you can attend the class. If you
cannot attend, remember all classes are recorded and the recording will be sent to all students
after the class, so attendance is not compulsory. Everyone will have access to the recordings.

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This week we will focus our studies on Learning Unit 2 and 3: VOLUNTARY SURRENDER.

In preparation for our teachings of this week, please ensure that you study the following study
material:

1. Study your prescribed textbook, Hockly’s chapter 2, up to and including 2.2.3.

2. Study Guide, Learning Unit 2.
3. Ex Parte Arntzen (Nedbank Ltd as Intervening Creditor) 2013 (1) SA 49 (KZP).
4. Strutfast (Pty) Ltd v Uys 2017 (6) SA 491 (GJ).
(Note that both judgments must be studied as in the law reports and summarised to
enable you to discuss the relevant issues in not more than one typed page.)
5. Transformative Constitutionalism in Insolvency Law.
6. Please note that the Hockly’s textbook chapter 2 is divided into 2 Learning Units,
Learning Unit 2 and 3.
a. This week we study the first part of chapter 2, i.e. Learning Unit 2. Thereafter we
will study the second part of chapter 2, i.e. Learning Unit 3. (See the next
Teaching and Learning document posted.)
b. You will receive the Self-test questions and suggested answers for both
Learning Units.
c. Therefore, you will only receive one Narrated Power Point Presentation that will
cover both Learning Units 2 and 3.

So, admin done, let’s start to learn!! Have fun!

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When you look at the Insolvency proceedings, you will note that when a debtor is experiencing
financial difficulties, there are various methods he could use, before following the
sequestration route (Individual Proceedings). However, when we then come to the Law of
Insolvency, and look at the debtor’s estate, we will note that every debtor has some assets,
but also some liabilities (debts owed). When we look at Voluntary Surrender, this is the case
where the debtor applies to court to surrender his estate for sequestration. So, if we should
look at a road map of where we now are in the debt collection process, it would look like this:
 Debt collection Road Map

Individual Collective
(Sequestration)

Various Methods

Attempts by creditors before

sequestration

Insolvency Debtor’s Estate

Assets Liabilities
(Fairly (Fairly
valued) valued)

Sequestration Sequestration

Voluntary Compulsory
Surrender Sequestration
(Debtor (Creditor
applies) applies)

Sequestrating – Court Order

Now go study the material. Remember this is to enhance your own learning experience, is not
compulsory and it does not need to be submitted. It will be of great value to you in
understanding the work better and to help you work throughout the year, rather than panic
study before the exam. So, enjoy this journey with us!

Best wishes, and warm regards,

Mrs Taljaard