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Understanding corporate law
- The processes a company follows when making a decision and resolving issues
- The methods of communication between shareholders and management as well as the company employees.
- How the company shares rights and responsibilities between management, employees, and shareholders.
- The procedures and policies for decision-making on company affairs.
- Company decisions such as litigation, mergers, acquisitions, and intellectual property.
Common matters in corporate law
- Corporate insolvency – Corporate insolvency describes the situation when a company's assets are not enough to cover the company's liabilities and debts.
- Mergers and acquisitions: These are cases where a company's ownership is completely transferred if combined with another company. This includes merging or company assets, liabilities, and even ownership. The process of merger and acquisition happens in the presence of a corporate lawyer.
- Corporate crimes – This occurs when a company or a corporation is accused of breaking corporate law. Corporate lawyers come into place to defend the corporates in court in case of any accusations. Examples of corporate crimes include corporate fraud, antitrust violations, false claims, and bribery, among others.
Principles of corporate law
- Limited liability – When a company-issued, it's the company's assets that are put in line. The complainant can never go after the assets of the company directors or owners. Limited liability in corporate law allows the company owners to take risks by diversifying investments to grow the corporation.
- Legal personality – Company owners put their resources together into a separate entity. The entity then uses the resources as its own. The proceeds of the resources are then used to reward the owners as well as expand the entity.
- Delegated management – Corporations have a specific way of conducting their affairs. A board of directors and management heads a corporation. The management and junior officers head the corporation's day-to-day operations.
- Transferrable shares – If the corporation owners decide they do not want shares in their company, they do not have to shut down; the owners can transfer the shares to other people. Transferring shares is easier than transferring ownership of a company.
- Investor ownership – The owners of the corporation have a huge say in the corporation's decision-making. Owners of companies vote to elect the board. The interest of the board is to see the company moving forward and making more profit.