By: Nishat Fatima
Most of the law student aspire to be a corporate lawyer. In most of the law school, there is no such particular course like Corporate law in Bachelor’s degree. But yes, we do have Company law, business law and other related courses. So here we are going to discuss that whether all those courses are same as the subjects and the aspects which are involved in the Corporate law or is there any difference between Company law or Corporate law. Is there need to of introduction of one single course for Corporate law. What are the subject of Corporate law and what are its scope? Here we are dealing with those issues.
What is corporate law?
Corporate law is a study of law governing rights, rules, regulations, relation and practices that govern the formation and operation of corporations. The term corporate law is used interchangeably as company law, business law or enterprises law, but there is difference and that is corporate law indicates a wider connotation, whereas company law encompasses Companies Act, 2013 and rules, notifications, circular made there under. Corporate law regulates how corporations, investors, shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community, and the environment interact with one another. Corporate law deals with the matter related to company, from all statuary bodies like SEBI, SCRA, Indian Contract Act. A corporation may be called as company but a company can not be called as a corporation. Corporate law is a response to three endemic opportunism: conflicts between managers and shareholders, between controlling and non-controlling shareholders; and between shareholders and other contractual counterparts (including creditors and employees).
Definition of Company and Corporation Company is a legal entity representing a voluntary association of people with a specific objective to engage in and operate a business enterprises with the aim of sharing profits. Section 2(20) of the Companies Act, 2013, defines the term ‘Company’ as follows: “Company means a company incorporated under this Act or under any previous company law. A Corporate is a business structure or a legal form of organization. It has a separate legal identity distinct from its owners. The owners of a corporate are called as shareholders. Corporate, as an artificial person, is solely responsible for its own actions, liabilities and debts. None of the shareholders is personally liable for the actions of a corporate.
Characteristics of Corporation
The 5 legal characteristics of a corporation Legal personality: All resources from investors and homeowners area unit place into a separate legal entity. That entity will then use those assets to conduct business activities. Limited liability: Owners’ and investors’ liability is restricted to the quantity of cash they invested with within the business. If a company gets sued, the homeowners and investors don’t seem to be in person liable – the business may be a separate legal entity. Transferable shares: If associate degree owner or capitalist not needs to be apart of a company, they will transfer their shares to somebody else with very little result on the business. Delegated management: The structure of companies includes a board of administrators and officers. The board of administrators rent and monitor the officers and approve the choices they create. The officers handle day to day operations. each of those teams split decision-making authority. Investor ownership: capitalists facilitate create choices for the corporation, however they aren’t concerned directly with running it.
Differences between Business law and Corporate law
Corporate law is a legal field that governs the formation of companies, shareholder rights, mergers, and acquisitions, while business law or commercial law deals with the sale and distribution of goods. Business law is a general category that covers several areas of law such as employment law, contracts, taxes, and commercial transactions. All these areas affect business and business entities. Corporate law concerns the operations of a corporation, the duties of its management, the rights of shareholders, and other problems that apply mainly to corporations. Laws treat a corporation as a separate entity from its owners. A corporation has various powers such as entering contracts, filing a lawsuit, or getting sued. The owners of a corporation are shareholders and they have certain rights under corporate law. business law includes several areas of law. For instance, a person studying business law would likely learn how employment law affects all types of business entities. Employment law concerns business practices such as hiring people, firing employees, and how a business entity must treat its employees. A business that does not follow these laws may end up in court defending against a lawsuit. The most common difference is that business is an activity, and the business law covers the laws for that activity while corporate law is concerned with the activities of corporation it is not in itself an activity. Corporate laws, influence businesses on a broader scale. Corporate law attorneys deal with areas such as contracts, taxes, and employment law. This kind of law is more common than business law.
Field covered under Corporate law Corporate law includes the following area • Companies law •