Corporate Law

What is a Corporate Law?

Corporate Law is also known as “Company law” or “Corporations law”. Corporate law focuses on legal matters which stipulate the official articles of the company’s incorporation. The company can be profit-making or professional business, a law or medical office, or even a non-profit corporation. The provisions in a corporate law can be domestic or international. Even foreign companies are under these laws and have to have their own corporate laws. There are also other laws which govern businesses.  These include protection of the consumer (consumer protection law), labor laws, employment laws, laws concerning contracts of employees, trade regulation laws and securities laws.  Corporation laws are also concerned about the day-to-day operations of an organization.

Why is there a need for Corporate Governance?

Basically, corporate governance is the relationship between the board of directors, the shareholders, stakeholders and the employees. There is a need for corporate governance as to establish order in the ranks in a corporation. With this in place, a corporation will be able to direct and exercise different powers for certain purposes. With the corporate constitution, the rules help establish proper governance of a company. Duties are fairly stipulated. Finances, shares, stock and liquidations are distributed to different responsible department for proper management of the company.