When many people hear the phrase “corporate law”, the notion of businesses come to mind. What many do not know though, is what exactly corporate law encompasses. How is it different than other fields of law? Is it universal, or does it vary from region to region? In its most basic of definitions, corporate law is a structure of laws the govern the formation and fundamental operations of corporations. The specifics of the laws are dependent on the location of the corporation. Every country, state, and province in the world can have different corporate regulations, which makes having a lawyer who is well versed in all areas where a corporation does business.
What exactly is a corporation, and how is it governed by corporate law?
A corporation can best be thought of a legal entity. Unlike an individual, a legal entity is the representation of a corporation in matters of law. When a person sues a company over a faulty product, it is not the person or machine on the factory line that is sued, but the legal entity of the corporation. Corporations also act as a tax shield to the individuals that own or act as share holders. If a corporation fails and dissolves, with the exception of unpaid taxes, its debts are not burdened upon the owners and shareholders. Corporate law involves building the corporate entity and ensuring the structure of the corporation is maintained, despite any change in owners or leadership.
What role do lawyers who specialize in corporate law play?
Corporate lawyers are specialized professionals who are well trained in the laws regarding not just the formation and daily guidelines for conducting business, they are also involved in many aspects of the corporate world. They are vital in the formation of joint ventures, merging, and licensing arrangements to name just a few aspects in with corporate law rules. Any form of business conducted by a corporation is best handled and at times required to be conducted by a lawyer who specializes in corporate law. This is especially true for crucial corporate matters such as creating internal legal forms and any issue concerning taxes. Ultimately corporate law is a series of laws that are put in place to protect not just the corporate entity, but the persons who run and own it. It protects the investment of shareholders, and the livelihoods of all that the corporation employs. Corporate law creates the structure and shield sustain corporations.
