This course examines, from a legal perspective, the process by which enterprises raise finance, the rights of the providers of finance, controls over how a company can use external finance and the operation of the capital market which supports the issue and trading of financial instruments. The focus of this course is on equity finance (primarily company shares) since debt finance is considered in the LLM course Debt Finance and Security.

10 x 2 hour seminars in semester 2

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The course is assessed by an essay of 1500 words (25%) and a 2 hour final examination (75%).

General aims

This course provides an in-depth examination of the legal framework for equity finance over the entire corporate lifecycle, including venture capital, management buyouts, initial and subsequent public offers of shares, rights issues, private equity buyouts and share buybacks. It will examine the use of different types of equity finance instruments and the legal rights associated with them. The role of capital markets in raising new capital and trading shares will be examined along with the role of financial regulators in controlling that process.

More detailed aims are:

To provide an intellectual training through the in depth study of corporate finance issues in their theoretical, practical, European and international context.

To establish a learning environment in which the frameworks, underlying principles, values, and contexts in which corporate finance concepts operate can be explored thoroughly and analytically, and in which application skills can be developed.

Through the provision of opportunities for the acquisition of a broad range of professional, transferable, and drafting skills, to offer preparation for employment across firms engaged in corporate finance.

By the end of this course students will be able to:

Knowledge and Understanding

1. Demonstrate a critical understanding of the principal (and a range of specialised) theories, concepts and principles of as well as awareness of current issues in equity finance.

2. Demonstrate extensive, detailed and critical understanding of the role of equity finance at different points in the corporate lifecycle.

Practice: applying knowledge, skills and understanding

3. Demonstrate originality and/or creativity, including in equity finance practices, namely explain how an equity finance operation is structured, or why it is structured in a certain way and raise questions about terms that seem to be anomalous or inefficient or inappropriate for the operation.

4. Practise in a wide and often unpredictable variety of professional level contexts in the area of equity finance.

Generic cognitive skills

5. Apply critical analysis, evaluation and synthesis to forefront legal issues associated with equity finance issues.

6. Identify, conceptualise and define new and abstract problems and legal issues.

7. Develop original and creative responses to problems and legal issues.

8. Critically review, consolidate and extend knowledge, skills, practices and thinking in equity finance issues.

9. Deal with complex issues and make informed judgements in situations in the absence of complete or consistent data/information.

Autonomy, accountability and working with others

10. Exercise substantial autonomy and initiative in professional and equivalent activities related to equity finance operations.

11. Take responsibility for own work and significant responsibility for the work of others.

12. Work in a peer relationship with specialist practitioners.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.