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Company Law - Article Example

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Company Law

(2) In other words it is the body of rules, whether by convention, agreement, or national or international legislation, governing the dealings between persons in commercial matters.
Business law falls into two distinctive areas: (1) the regulation of commercial entities by the laws of company, partnership, agency, and bankruptcy and (2) the regulation of commercial transactions by the laws of contract and related fields. In civil-law countries, company law consists of statute law; in common-law countries it consists partly of the ordinary rules of common law and equity and partly statute law. Two fundamental legal concepts underlie the whole of company law: the concept of legal personality and the theory of limited liability. Nearly all statutory rules are intended to protect either creditors or investors. There are various forms of legal business entities ranging from the sole trader, who alone bears the risk and responsibility of running a business, taking the profits, but as such not forming any association in law and thus not regulated by special rules of law, to the registered company with limited liability and to multinational corporations. ...Show more

Summary

Corporate governance concerns the systems by which companies are directed and controlled. (1) The topic should not be studied in isolation within any one country. Instead, corporate governance is becoming an important issue in all industrial economies, and students of the topic need to be aware of what is occurring outside their respective countries…
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Company Law Article essay example
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