This module aims to provide students with an opportunity to gain an understanding of the methods available to businesses of raising finance. In particular, it seeks to identify the financial consequences of the choice of business form. Furthermore it is concerned with the legal rules, policy and theoretical underpinnings that exist to deal with insolvent juristic and natural persons. The corporate insolvency regimes (administration, company voluntary arrangements, schemes of arrangement) that facilitate rescue of the juristic person, as well as other avenues (liquidation, receivership, informal arrangements) are critically examined in this module, in addition to the procedures that exist for natural persons (bankruptcy, individual voluntary arrangements, debt relief orders). The relative use of each procedure, relevant case law and statute and academic and practitioner comment is examined so as to posit each procedure in their relevant practical context.
On successful completion of the module, students will be able to:
This module is delivered through a seminar programme. These group seminars, will give the students the opportunity to explore the material they have been assigned and to ask questions relating to any difficulties they have experienced. They will have the opportunity to work in small groups to discuss a topic as well as participate in the wider plenary sections of the session.
| Definitive UNISTATS Category | Indicative Description | Hours |
|---|---|---|
| Scheduled learning and teaching | Lectures, small group sessions and seminars | 22 |
| Scheduled learning and teaching | 278 | |
| TOTAL (number of credits x 10) | 300 | |
| Total (number of credits x 10) | 300 | |
Assessment will consist of coursework and an examination paper. The mixture of essay and problem based questions in the exam will allow students to demonstrate their knowledge understanding and ability to apply the law. The coursework enables the students to demonstrate their ability to research and apply the law. The assessment will require students to demonstrate a clear understanding of the legal issues involved, to carry out competent and independent research into some aspects of the law relating to the legal aspects of business finance and to present and communicate their research findings effectively. The assessment also requires students to consider the different legal approaches to the problems and issues raised and, where appropriate, to review critically the state of current law.
Formative assessment: The students are given the opportunity to answer past exam questions. The students get the opportunity to test their knowledge by answering given questions for each week.
| Learning Outcome | Assessment Strategy |
|---|---|
| 1) assess critically the consequences of the choice of business form for methods of financing | Coursework/examination (S) |
| 2) examine critically the rules relating to the issue of shares, the maintenance of share capital, the taking of loans and the granting of security by companies | Coursework/examination (S) |
| 3) critically evaluate the regimes intended to effect the rescue of a business in financial distress and the regimes under which the affairs of a failed business can be wound up | Coursework/examination (S) |
| 4) apply the rules determining which assets of the insolvent business will be available for distribution to creditors | Coursework/examination (S) |
| 5) assess the circumstances in which those involved in running the business may be liable either to compensate the creditors or to criminal prosecution and assess the circumstances in which those involved in the management of an insolvent business may be disqualified from holding company directorships | Coursework/examination (S) |
| Description of Assessment | Definitive UNISTATS Categories | Percentage |
|---|---|---|
| Unseen Examination | Unseen Examination | 60 |
| Research Exercise | Coursework | 40 |
| 100% | ||
| Total (to equal 100%) | 100% | |
It IS NOT a requirement that any major assessment category is passed separately in order to achieve an overall pass for the module
E. Ferran Principles of Corporate Finance Law OUP
L. Gullifer and J. Payne Corporate Finance Law Hart
Tribe, Core Statutes on Insolvency and Corporate Rescue, Palgrave Macmillan.
Tolmie, Introduction to Corporate and Personal Insolvency Law, Cavendish.
Andrew Keay and Peter Walton, Insolvency Law: Corporate and Personal Jordans.
Finch V, Corporate Insolvency Law, Cambridge University Press.
Fletcher, The Law of Insolvency, Sweet and Maxwell.
R.Goode, Goode on Commercial Law Lexis Nexis Butterworths
L.Gower and Davis, Principles of Modern Company Law Sweet and Maxwell
J. H.Farrar, Farrar's Company Law, Butterworths
P. R. Woode, Law and Practice of International Finance Sweet and Maxwell
Fletcher, IF. The Genesis of Modern Insolvency Law-An Odyssey of Law Reform [1989] JBL 365.
Fletcher, I.F. Juggling with norms: the conflict between collective and individual rights under
insolvency law, in R Cranston (ed) Making Commercial Law (1997) at 395.
Hunter, M. The Nature and Functions of a Rescue Culture [1999] JBL 491.