Corporate law (also "company" or "corporations" law) is the study of how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community and the environment interact with one another. Corporate law is a part of a broader companies law (or law of business associations). Other types of business associations can include partnerships (in the UK governed by the Partnership Act 1890), or trusts (like a pension fund), or companies limited by guarantee (like some community organisations or charities). Under corporate law, corporations of all sizes have separate legal personality, with limited liability or unlimited liability for its shareholders. Shareholders control the company through a board of directors which, in turn, typically delegates control of the corporation's day to day operations to a full-time executive. Corporate law deals with firms that are incorporated or registered under the corporate or company law of a sovereign state or their subnational states. The four defining characteristics of the modern corporation are:
- Separate Legal Personality of the corporation (access to tort and contract law in a manner similar to a person)
- Limited Liability of the shareholders (a shareholder's personal liability is limited to the value of their shares in the corporation)
- Shares (if the corporation is a public company, the shares are traded on a stock exchange, such as the London Stock Exchange, New York Stock Exchange, Euronext in Paris or BM&F Bovespa in Sao Paulo)
- Delegated Management; the board of directors delegates day-to-day management of the company to executives
In many developed countries outside of the English speaking world, company boards are appointed as representatives of both shareholders and employees to "codetermine" company strategy. Corporate law is often divided into corporate governance (which concerns the various power relations within a corporation) and corporate finance (which concerns the rules on how capital is used). A major contributor to company law in the UK is the Companies Act 2006.
Read more about Corporate Law: Corporate Governance
Other articles related to "corporate law, law, corporate, laws":
... Bhutanese law regulates incorporation, capital, debentures, shares and issuance of stock and securities, corporate management and accounting, directorships, mergers and acquisitions, and dissolution ... The bulk of Bhutanese corporate law, however, is identical to those of modern nations, including statutory shareholder inspection rights, the dichotomy between "equity shares" (common) and ... general corporate and insolvency laws) Since 2007, Bhutan has separately regulated civil society organizations ("CSOs") ...
... Corporate Rescue and Insolvency Journal. ...
... Basic corporate Law is found in the Civil and Commercial Code sections 1012 to 1273 (Book II, Title XXII) ...
... Berle became a professor of corporate law at Columbia Law School in 1927 and remained on the faculty until retiring in 1964 ... He is best known among economists and corporate law specialists for his groundbreaking work in corporate governance ... economist Gardiner Means, remains the most quoted text in corporate governance studies ...
... Books Corporate Law (1986) Articles "Major Trends Lead Us Back to Basics," 31 Journal of Corporate Law 591 (2006) ... "Corporate Governance Changes in the Wake of the Sarbanes-Oxley Act A Morality Tale for Policymakers Too," 22 Georgia State Law Review 251 (2005) ... "Why So Many Lawyers? Are They Good or Bad?" 61 Fordham Law Review 275 (1993) ...
Famous quotes containing the words law and/or corporate:
“No great idea in its beginning can ever be within the law. How can it be within the law? The law is stationary. The law is fixed. The law is a chariot wheel which binds us all regardless of conditions or place or time.”
—Emma Goldman (18691940)
“If when a businessman speaks of minority employment, or air pollution, or poverty, he speaks in the language of a certified public accountant analyzing a corporate balance sheet, who is to know that he understands the human problems behind the statistical ones? If the businessman would stop talking like a computer printout or a page from the corporate annual report, other people would stop thinking he had a cash register for a heart. It is as simple as thatbut that isnt simple.”
—Louis B. Lundborg (19061981)