Business and Company Law Overview

A business structure where the owners' personal assets are protected from business debts.

A business structure where the owners' personal assets are at risk for business debts.

The process of separating the financial activities of a company from its owners' personal finances.

The legal principle allowing creditors to pursue a company's owners' personal assets if the company is unable to pay its debts and was created for fraudulent purposes.

A company registered in such a way that it can offer ownership shares to the public.

A company registered in such a way that it cannot offer ownership shares to the public.

Ownership instruments representing a portion of a company's ownership, often used for public companies.

Parties who have a claim against a company for unpaid debts or services.

Companies where individual contributions are highly important, with each person contributing unique skills and expertise.

Companies that rely on the contributions of many individuals, with individual skills often considered interchangeable.

A legal structure where participants share financial obligations and responsibilities for a common purpose.

A form of company based on agreements between individuals, often in the form of partnerships.

A form of company that exists independently of its members, regulated by specific rules and laws.

The field of law covering legal structures for business activities.

The legal system often found in continental Europe, with a strong focus on written codes and regulations.

The legal system commonly found in England and former colonies, with a strong emphasis on precedent and case law.

These companies are designed for larger enterprises, especially those seeking funding through capital markets. They offer full legal personality and limited liability for shareholders.

The minimum capital requirement for public companies is generally higher than that for private companies. This ensures financial stability and credibility in the market.

Shares are freely transferable, meaning investors can easily buy or sell their ownership in the company. This provides greater liquidity in the market.

A company's board of directors, not the individual shareholders, typically handles operational decisions. This ensures professional management of the company.

A 'share' represents a portion of ownership in a company and is a key tool for raising capital quickly. Investing through shares allows investors to enter or exit from an investment rapidly.

Partnerships where each member is personally responsible for all debts and obligations of the company.

A key concept in partnerships, reflecting the mutual trust and commitment between partners.

In general partnerships, each partner has the right to manage the business and bind the partnership to third parties without restrictions.

Partners may modify most legal rules governing the partnership, creating customized agreements.

Partnerships often have flexible voting structures, sometimes based on contributions or other factors.

A new type of legal form with minimal capital requirements, standardized rules, and intended to boost competition between member states.

The ability for a company to deviate from standard legal rules and create custom agreements.

Partnerships are often based on personal relationships and trust, making them less formal than traditional corporations.

A European Commission initiative aimed at modernizing company law across member states, focusing on areas like corporate governance, transparency, and cross-border operations.

A directive adopted by the EU to promote transparency and information exchange related to companies across member states.

A proposed legal structure designed to simplify the creation and operation of single-member companies in the EU.

A proposal designed to harmonize company law across all EU member states, making cross-border business operations smoother.

A legal case that clarified the principles of company law in the EU, impacting how national laws interact with EU regulations.

An initiative to consolidate various EU directives and regulations into a unified framework, making company law clearer and easier to understand.

A comprehensive package proposed to modernize and simplify EU company law regulations, making them more efficient and user-friendly.

A legal principle emphasizing the importance of transparency in corporate governance, allowing stakeholders to access relevant information about companies.

The freedom for companies to establish a branch, subsidiary, or office in another EU member state.

The freedom for companies to move their headquarters and legal base to another EU member state.

The ability of a company to change its legal form (e.g., from a private limited company to a public company) by migrating to a different EU state.

A process where EU countries harmonize their company laws to create a more unified legal framework for EU businesses.

A form of legal cooperation where EU countries agree on common rules and standards for company law. This allows for a more streamlined and predictable environment for businesses.

A system where a company incorporated in one EU country can seamlessly convert its legal form and transfer to another EU country.

A legal entity created in one EU country can move to another EU country and maintain its legal identity.

The competition between companies from different EU countries to attract investment and business. It is driven by factors like tax rates, regulations, and the availability of skilled labor.