An Overview of Corporate Law

What is corporate law? This is a branch of law that deals with the study of relationship between shareholders, employees, creditors, directors, as well as other stakeholders like the community and consumers.

Corporate law is another sensitive part of companies’ law. Under this law, businesses of all sizes often have separate legal entity, with both limited and unlimited liability for its owners. The law also deals with the decision making process especially those that affect the operations of the business in the long run.

Corporate law also deals with firms, which are registered or incorporated under the company law of the sovereign state. The four key principles of this law are:

• Separate legal entity of the corporation.
• Limited liability of shareholders ( where a shareholder has a personal liability limited to the total value of their shares within the company)
• Shares (can be traded on any stock exchange)
• Delegated management; where the board of directors (BOD) have a duty of to appoint the executives with the responsibility of day-to-day management of the business.

Check out Judson Sutherland's law blog for more information on corporate law.