In this final lecture, the discussion centers on how corporations raise funding, reshape themselves through mergers and acquisitions, and ultimately manage dissolution if needed. The opening theme is corporate financing: a corporation typically secures capital in one of two primary ways—equity or debt. Equity involves issuing various classes of stock, such as common shares that generally provide voting rights alongside economic participation, or preferred shares that might feature special dividends, liquidation preferences, or convertible features but often carry limited voting influence. The decision to issue more common or preferred shares can reshape the power dynamics among existing shareholders, because expanding equity offerings may dilute existing stakes or cede greater control to new investors. This can be a strategic move if the corporation seeks to bring in specialized funds or avoid the obligations that come with debt, yet it can also lead to tension if founders or controlling shareholders wish to preserve influence.

Another significant option is debt financing, where the corporation sells bonds or notes to lenders. Unlike shareholders, bondholders receive no direct voting rights, though they might benefit from covenants restricting the corporation’s actions or mandating certain financial ratios. The law treats these debt instruments as contractual obligations, obliging the corporation to pay principal and interest, or risk default. This choice of debt can leave corporate management free of direct ownership oversight, but it heightens the risk that severe downturns could threaten solvency if interest or principal payments become unmanageable. Especially in leveraged buyouts or expansions, a high debt load may lead to a precarious balance between fueling growth and imperiling the corporation’s stability.

Once the lecture transitions to structural changes, the conversation turns to mergers, acquisitions, and consolidations. Mergers unite two companies into one surviving entity, guided by statutory provisions that require both director and shareholder approval in most cases. Acquisitions may involve purchasing stock or assets, depending on the specific transaction design, with the potential for partial or total takeover. Consolidations yield an entirely new corporation, merging the original entities into a fresh legal form. These transactions necessitate thorough disclosures, fair treatment of minority shareholders, and possible appraisal rights for dissenters who believe the deal undervalues their shares. Control questions loom large if a controlling shareholder orchestrates a freeze-out to oust minority owners, triggering standards of entire fairness and heightened scrutiny in jurisdictions that protect minority interests.

Finally, the lecture addresses the pathways through which a corporation might end its operations. Voluntary dissolution allows the board and shareholders to decide that the corporation’s mission is complete or that it cannot viably continue, leading to asset liquidation and winding up. Involuntary dissolution occurs when courts step in, such as if the corporation’s management is deadlocked or if shareholders can prove oppressive conduct. During winding up, the corporation’s remaining assets go first to satisfying debts and obligations, and only then do shareholders receive distributions in accordance with their priority. Preferred shares, if structured with liquidation preferences, may consume any leftover value before common shareholders see a return. The law expects a systematic approach to paying creditors and clarifies how the leftover resources flow to shareholders.

In real examples, boards might weigh whether to issue additional stock, face the demands of bondholders, or negotiate a merger that reshapes the corporate identity. Founders often consider how expansions or acquisitions mi