Undergraduate Module Descriptor
LAW3194C: The Law of Corporate Finance
This module descriptor refers to the 2022/3 academic year.
|Term(s) and duration|
This module will run during term 2 (11 weeks)
Mr Nick Pointon (Convenor)
|Available via distance learning|
The raising, maintenance and strategic application of capital is essential to the long-term prosperity of any large corporate venture. Whether it is expanding into a new market, enabling a merger or acquisition, launching a new product, building financial resilience or any other motive for corporate restructuring, companies of all types constantly need to access different sources of finance swiftly, safely and smoothly. Given that raising capital is a risk-prone activity, with the potential to cause widespread consequences for stakeholders, as well as for wider society, it is a very heavily regulated aspect of corporate governance, with many rules and laws in place to manage and minimise risk the capital raising, maintenance, expenditure and reduction processes.
This module introduces students to the two primary sources of finance for companies outside of the company’s own profits – being equity and loan capital – exploring the different strategic options for companies and the optimum systems of corporate financial structuring. It then builds on each of these by exploring some of the risk, practical management and policy challenges surrounding different aspects of corporate finance, explaining the rationale for different legal rules controlling each process and the broader requirements for corporate and controller compliance. It therefore explores issues such as the law and rules governing different share types and classes, issuing shares, loan security and charges, capital maintenance, capital reduction, financial assistance, and on managing liability in corporate insolvency.
While students may benefit from having previously studied Corporate Law, Theory and Governance (LAW3195C), it is certainly not a pre-requisite, as this module will assume no prior knowledge of company law.