The taught modules offered on the LLM programme vary from year to year. Please check the full list of taught modules list for details of modules running in specific academic years. We make every effort to ensure that every module will be offered, but modules are subject to change and cancellation. You are therefore advised to check this site regularly for further updates throughout the year preceding entry to the LLM programme.
|THE LEGAL FRAMEWORK FOR ENTERPRISE CREDIT: INTERNATIONAL AND COMPARATIVE PERSPECTIVES (LAWSG173)
Credit value: 30 credits (12 ECTS)
|Module Convenor: Prof Riz Mokal
||Other Teachers: N/A
Business needs credit to create innovation, wealth and employment. The flow of credit through an economy is a function, among other things, of that economy’s legal credit framework. Legislators and policy makers have an interest in understanding how best to facilitate responsible access to credit in their jurisdictions; market participants have interests in influencing this law-making process; and donor organisations with mandates to promote international development and stability have interests in identifying and disseminating international best practices in the design of the credit framework. This module would be of interest to anyone intending to develop a practice of advising any of these stakeholders on such issues.
A country’s credit framework consists, among other things, of the laws and regulations governing credit history information, security interests, risk management practices, informal workout and collection practices, formal enforcement, liquidation and restructuring, and the operations of the commercial judiciary and the specialist insolvency/turnaround profession. Many of these issues intersect in important and illuminating ways with other elements of law and regulation, such as central bank guidance, and tax, financial reporting and accounting laws.
This module will introduce students to the credit framework by examining the law, regulation and practice of each of these points in the credit life cycle. The perspective will be international and comparative, with an emphasis on transnational ‘soft law’ instruments regarded as instantiating ‘best practice’ standards in their domain. This will be supplemented by concrete examples drawn from the national systems of industrially developed, emerging and developing countries. Philosophical and economic analyses will be employed to evaluate extant and possible laws, regulation and practices.
1. Introduction: The Lifecycle of Enterprise Credit
Lending and Risk Management
2. Credit and Credit Information Systems
3. Security interests: creation, operation, registration
4. Lender credit risk management practices
Informal Distress Resolution
5. Rescheduling and workouts
6. Enabling regulatory frameworks
Individualistic Claim Enforcement
7. Non-court enforcement
8. Court-based enforcement
Collective Claim Enforcement
9. Insolvency Law: Principles, policies, objectives
10. Eligibility, scope, commencement
11. Governance in insolvency proceedings
12. Preservation and realisation of estate
13. Transaction adjustment
14. Treatment of contracts; priorities
16. Duties of controlling persons
17. Cross-border issues; enterprise groups
Institutional and Regulatory Frameworks
18. Commercial courts
19. Insolvency professionals
Background Reading (optional):
- The World Bank, Principles for Effective Insolvency and Creditor/Debtor Regimes (2011)
- Westbrook et al, A Global View of Business Insolvency Systems (Washington, D.C.: Martinus Nijhoff, 2010)
- Mokal, Corporate Insolvency Law: Theory and Application (Oxford: OUP, 2005), Chapters 1 to 3
- UNCITRAL, Legislative Guide on Insolvency – Part I (2004)
- Garrido, Out-of-Court Debt Restructuring (The World Bank, 2012)
- Tirado, Regulation of Insolvency Representatives (The World Bank, 2011)
- The World Bank, The Treatment of the Insolvency of Natural Persons (2012)
Module reading lists and other module materials will be provided via online module pages, once students have made their module selections upon enrolment in September.
|Delivery and enrolment
|Lectures/Seminars: 20 x 2-hour seminars
|Previous module enrolments: Small – less than 15 students
|Who may enrol: LLM students
|Prerequisities: No formal prerequisites, though a familiarity with commercial, security, and/or insolvency laws would be strongly advantageous.
|Barred module combinations: None
|Core Module for LLM specialism: Comparative Law, Corporate Law, International Banking and Finance Law, International Commercial Law, Law and Economics
|Final Assessment: 3,000 word coursework essay (50%) and 2-hour unseen written examination (50%)
|Practice Assessment: Individual feedback on one essay in the first teaching term, and on part of the coursework essay in the second teaching term.
|Teaching and Learning Method:
The module will be taught on a modified Socratic basis: readings will be set in advance and students would be expected to draw on their understanding of the set material actively to participate in seminar discussions in response to the seminar leader’s questioning. A critical approach would be indispensible, with students encouraged not merely to master existing material but to interrogate it by reference both, to the interests of those producing them, and against the values and goals underlying the relevant domains. Students not comfortable with this method of discussion and learning are unlikely to be suited to the demands of the module.
This page was last updated on
11 July, 2014