Corporate legal issues are general and specific matters relating to businesses and companies, including mergers, delisting and public listing, acquisitions, as well as the rights of the shareholders. The company is treated by the law as a single unit. This area of law focuses more on corporations than the individuals who make up its workforce. For Litigation Funding advice, visit //www.novo-modo.co.uk/litigation-funding
The Law of Companies explained
Corporate law deals with the legal aspects of a professional business and those who run and finance it. In the law, a company is unique because it can have hundreds or thousands workers but they are still considered a single entity, with a separate legal personality from that of their shareholders, directors or owners. A company is an artificial person in legal terms. However, it has many rights of a natural person.
Corporations, Companies and Businesses
There are many different types of businesses. They differ greatly in terms of where they get their funding, what they do with the profits, and who’s responsible for the debts.
Individuals or partnerships that are financed by and managed by one person or more, who then split profits, are responsible for any debts they incur.
Legally, corporations and companies are separate from the people who own, fund, and manage them. The profits are divided between owners or shareholders. When a corporation or company goes bankrupt, directors and shareholders are not personally responsible for the debt.
Private companies are owned by individuals, small groups or people who are involved in the management of the company. Private companies are funded by loans, investment capital and profits. Private companies are not the same as corporations, but they do share certain characteristics. One of these is that personal responsibility is limited.
Shareholders of public companies or those listed on the stock market are responsible for financing them in part or entirely. They also share profits proportionally to their investment.