What Is Corporate Law?
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What Is Corporate Law?
Corporate law deals with the formation of corporations, as well as their interactions with other companies, individuals, and the public. Corporations are specific types of business structures that have specific characteristics such as:
- Decreased or limited liability of members of the company
- Separate legal personality of the company (i.e., a corporation may be treated as an “individual” for some purposes)
- Different rules regarding stocks and ownership of the company
- Increased rights and responsibilities of directors and other leaders
- Preferential tax treatment in some states
Thus, corporation law outlines how a company can become a corporation, and how corporations are allowed to participate in the economic marketplace. Corporation law is sometimes known as “company law” or “corporations law.”
What Types of Legal Issues Are Covered under Corporate Laws?
Corporate laws involve a number of legal issues related to the creation and operation of corporations. These can include:
- Incorporation and filing processes (i.e., creating bylaws and other corporate formalities)
- Securities issues such as those involving stocks, shareholders agreements, and other investments in the company
- Member liability
- Rights of the board of directors and other key figures
- Disputes between corporations and other businesses
- Business mergers and takeovers
- Dissolution or termination of a corporate entity
These types of legal issues tend to affect many different parties. Although corporations are considered as individuals for legal purposes, legal issues with a corporation can affect the board of directors, company workers, consumers, and many other people.
How Are Corporate Law Disputes Resolved?
Corporate law disputes can sometimes be major and may involve a great deal of assets and resources. Corporation legal disputes can often be resolved through:
- Damages awards to pay for economic losses, loss of business reputation, and other costs
- Various remedies related to a breach of contract
- Court orders to alter corporate practices
- Changes in the company’s leadership or management structure
In some cases, criminal consequences may result, especially for issues such as insider trading or other securities violations.
Should I Hire a Lawyer for Help with Corporate Law Issues?
Corporate law disputes generally involve some complex laws and may affect large groups of people. You may need to hire a business lawyer in your area if you have any type of corporate law dispute or legal issue. Your attorney can research the laws in your region to determine what types of options and recourse you have for your claim. If you need to file a lawsuit in court, your attorney can be on hand to represent you during that process as well.
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Last Modified: 06-15-2015 05:59 PM PDT
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