Background and Rationale

• The aims of the module are to: 
• Give students the opportunity to explore and understand the nature of corporate finance in the form of share and loan capital and to examine and appreciate the consequences and legal options available once a company becomes insolvent. 
• Expose students to legal principles derived from a variety of legal instruments including statutes and cases.

Learning Outcomes
After completion of the module students should be able to:
1. Understand the share capital and how the law perceives it as a creditors’ fund.
2. Understand the loan capital and the standard financing agreements between companies and their bank
3. Understand various rules designed to protect creditors, namely the rules governing distributions to the members; the directors’ duty to have regard to creditors’ interests; and the ability of liquidators to challenge prior transactions once the company goes into liquidation
4. Understand the basic structure of liquidations and the order of distribution of assets on insolvency.