Corporate Law Basics

Corporate Law

Definition

• Corporate law, also known as company law or corporation law, is the body of law that governs the formation, operation, and dissolution of corporations.
• It deals with the rights, relationships, and conduct of persons, companies, organizations, and businesses.

Key Concepts

• Company: A legal entity separate from its owners, with its own rights and liabilities.
• Incorporation: The process of forming a company, which involves registering with the relevant authority and obtaining a certificate of incorporation.
• Limited Liability: A concept that protects shareholders' personal assets from the company's debts and liabilities.

Types of Companies

• Public Company: A company that issues securities to the public and is listed on a stock exchange.
• Private Company: A company that is not listed on a stock exchange and has restrictions on the transfer of its shares.
• Non-Profit Company: A company that is established for charitable, educational, or religious purposes.
• Partnership: A business owned and operated by two or more individuals.

Corporate Governance

• Board of Directors: A group of individuals responsible for overseeing the management of the company.
• Shareholders: Owners of the company who have a say in its operation and management.
• Annual General Meeting (AGM): A meeting where shareholders vote on important company matters.

Corporate Finance

• Equity: Ownership interest in a company, represented by shares.
• Debt: Borrowed money that must be repaid with interest.
• Securities: Financial instruments, such as stocks and bonds, used to raise capital.

Corporate Law Regulations

• Company Act: A statute that governs the formation, operation, and regulation of companies.
• Securities and Exchange Commission (SEC): A regulatory body that oversees the securities industry.
• Listing Rules: Rules that govern the listing of companies on a stock exchange.

Corporate Law

Definition

• Corporate law governs the formation, operation, and dissolution of corporations and deals with the rights, relationships, and conduct of persons, companies, organizations, and businesses.

Key Concepts

• A company is a legal entity separate from its owners, with its own rights and liabilities.
• Incorporation is the process of forming a company, which involves registering with the relevant authority and obtaining a certificate of incorporation.
• Limited Liability protects shareholders' personal assets from the company's debts and liabilities.

Types of Companies

• Public companies issue securities to the public and are listed on a stock exchange.
• Private companies are not listed on a stock exchange and have restrictions on the transfer of its shares.
• Non-Profit companies are established for charitable, educational, or religious purposes.
• Partnerships are businesses owned and operated by two or more individuals.

Corporate Governance

• The Board of Directors oversees the management of the company.
• Shareholders own the company and have a say in its operation and management.
• The Annual General Meeting (AGM) is where shareholders vote on important company matters.

Corporate Finance

• Equity represents ownership interest in a company, represented by shares.
• Debt is borrowed money that must be repaid with interest.
• Securities are financial instruments, such as stocks and bonds, used to raise capital.

Corporate Law Regulations

• The Company Act governs the formation, operation, and regulation of companies.
• The Securities and Exchange Commission (SEC) oversees the securities industry.
• Listing Rules govern the listing of companies on a stock exchange.