Definition of Corporate Law
Corporations may be composed of a single person or a group of people, anyhow, it is still recognized as an individual with right, obligations, and privileges protected and established by law.
The law that is made for corporations is called corporate law, which is primarily for the stakeholders of the corporation.
In any country that is protected and established by law, there are organizations or groups of people that are progressing and surviving because of the said laws. Laws are there to look out for the welfare of each individual partaking in the society that all citizens are living in. It is constructed to ensure equality, equitability, peace, and justice. In the business industry, the group of people under a company or a corporation is viewed more like a country in itself. The structure is followed in such a way that there are leaders and subordinates to implement the flow of responsibilities within the concerned business.
But do not be misled into thinking that a corporation has to be constructed with only multiple numbers of people under it. Actually, it is very tough to set up your own business corporation without the help of a lawyer. A corporation is consisted of an individual or a group of people that participates in the economy by serving of producing items that are relatively important to people in any possible way. A corporation is treated like person already because as mentioned earlier, it also has rights, obligations, and privileges that are established and protected by law. The people that are acting under a corporation are named as one person or entity.
Normally, a corporation is based in a single location only, such as in a city or in a province. But even if it is only located in a single place, it doesn’t mean that it will only be liable to the said area. The corporation’s rights, obligations, and privileges are generally respected or honored in the entire country. It may be a different story already if there is an issue involving another country because of the difference in the law provisions for business corporations locally and internationally.
The laws that are specifically constructed for the business corporations are called corporate laws. It may also be noted as company laws, but it is rarely used because of the people misconstrue the difference between a company from a corporation. That is why for a clearer view of the two, corporate law is a narrowed part of the company law. It is a wide area of law that focuses on the different aspects of a business corporation. It sees to it that all stakeholders of the corporation are receiving and exercising the enough or the right amount of rights, obligations, and privileges under the established rules, regulations, and policies of an office. When pertaining to stakeholders, it point to the people involved in all the transactions that a corporation deals with. These people are the board of directors, stockholder, investors, employees, suppliers, customers, the immediate community, the environment, and the country. These groups of people that have direct and indirect relationships with the corporation are thought of most importantly in each aspect of the corporate law.
The corporate law is divided into two groups. The first one is the corporate governance, while the other part is the corporate finance. Corporate governance specifically defines every aspect of a corporation’s leadership structure, chain of command, and the interconnections of the shareholders thru the different transactions of the corporation. As for the corporate finance, it pertains to the various financial decisions that a corporation has to make that involve all or any of the shareholders. It basically revolves around the allocation and use of the funds and capitals within the corporation.
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