MRL3701 Study guide 2019

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.

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, 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

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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