Every company needs money, and a big part of business law practice is helping companies raise it lawfully and helping lenders protect what they put in. Whether a client is selling shares to investors, taking out a loan, or worrying about a borrower who may go under, you need to know the routes available, the procedures that make them valid, and the priority rules that decide who gets paid when money runs short.
This lesson takes you through funding from both sides — the company raising it and the lender securing it — and finishes with what happens on insolvency.
What this lesson covers:
- Equity, Debt and Types of Funding — the two core ways to raise money and the main forms each takes.
- Allotment of Shares — the authority, pricing and filing rules for issuing new shares.
- Pre-emption Rights — when existing shareholders must be offered shares first, and how to disapply that.
- Redeemable Shares and Dividends — buying shares back and the rules on paying out profits.
- Financial Assistance — when a company may not help fund the purchase of its own shares.
- Fixed and Floating Charges — how lenders take security and why the distinction matters.
- Avoidance of Charges and Insolvency Priority — when charges fall away and the order of payment on liquidation.
- Loan Terms and Guarantees — key clauses, events of default, and what makes a guarantee bite.
- Directors' Duties and Insolvency — how duties shift as a company nears collapse.