JEM094 - Corporate Law
| Credit: | 5 |
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| Credit ETCS: | 5 |
| Hours weekly: | 2/0 |
| Status: | Czech F,FM and B - elective Masters - all Semester - summer |
| Obligatory courses: | JEB022 - Institutional Economics JEB045 - Financial Management |
| Recommended courses: | JEM034 - Corporate Finance |
| Course supervisors: | JUDr. Tomáš Richter LL.M., Ph.D. |
| Teachers: | JUDr. Tomáš Richter LL.M., Ph.D. |
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| Literature: | Základní zahraniční knihy: - Kraakman, R., Davies, P., Hansmann, H., Hertig, G., Hopt, K., Kanda, H., Rock, E., The Anatomy of Corporate Law, A Comparative and Functional Approach, Oxford University Press, Oxford, 2004 - Romano, R.: Foundations of Corporate Law, 2nd Edition, Foundation Press, 2010 - Easterbrook, F.H. & Fischel, D.R.: The Economic Structure of Corporate Law, Harvard University Press, Cambridge, MA 1991 - Greenfield, K., The Failure of Corporate Law, The University of Chicago Press, 2006 Základní domácí knihy: - Richter, T., Kuponová privatizace a její vlivy na správu a financování českých akciových společností, Nakladatelství Karolinum, Praha, 2005 - Richter, T., Insolvenční právo, ASPI Wolters Kluwer, Praha, 2008 Materiály připojené k tomuto syllabu jako "readers". |
| Description: | Following a brief law-and-economics-based introduction to the business corporation and its governance, the course will explore the legal principles of debt financing (including the related areas of secured debt and bankruptcy), equity financing (private and public), and mergers and acquisitions. Given the current market situation, there will be more emphasis on debt and less on equity and M&A in the 2009/2010 run of the course. If time allows, the part on public financing will be replaced with a brief discussion of the problems involved in structured financing (securitization). |
| Content: | 1. Course overview; the law and its sources; the basics of contract 2.-4. Basic organizational theory; the purpose and structure of the business corporation; the key agents and the nature of their claims and motivations; the main agency problems and the purpose of corporate law; illustrations on legal rules from Europe (incl. the Czech Rep.) and the U.S. 5.-6. Debt financing (private) - the transaction mechanics - payment obligations in the loan agreement; the agency costs of debt and the contractual solution - loan covenants; 7.-8. Security interests and insolvency - agency costs of debt continued: principles, costs and benefits of secured financing; the basic legal toolkit; the big policy questions; insolvency as exit (reallocation of productive assets), governance and contract enforcement mechanism; types of proceedings; creditors' and debtor's rights depending on type of proceedings; bankruptcy case study (if time allows) 9.-10. Equity financing (private) - transaction mechanics; the agency costs of outside equity & the contractual solution - the subscription/shareholders agreement; governance (voting and exit rights) 11.-12. - Mergers and acquisitions - transaction mechanics: the asset deal v. the share deal, the statutory merger; the information asymmetry between buyers and sellers and its many guises; the seller's moral hazard post-closing; the contractual solution - the share purchase agreement; the issues in public M&A 13. - 14. Public financing (equity and debt) - principles, costs and benefits of regulation of the public capital markets; IPO case study (if time allows) |
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| Downloadable: | 110_20080221153516_tri-ies-readerjem094kapitoly1a2_905048.pdf 110_jensenameckling.pdf Reader 5 - Wood Reader 6 - Smith and Warner 1979 Reader 7 - Richter 2005 Reader 8 - CC 2012 (NML v Argentina) Reader 9 - Hansmann, Kraakman, & Squire, 2006 |