Corporation law (company law) is a branch of commercial law that deals with the nature, creation and operation of legally created businesses. It is also related to contract law and studies how shareholders, directors, employees, community and consumers relate with each other.
A corporation is a legal entity that is formed under laws of the state it’s incorporated within. This means that it can sue and get sued, enter into contracts and also maintain a business.
The function of corporation law is to reduce the ongoing costs of organizing business through the corporate form by ensuring the coordination between participants in a corporate enterprise.
Corporate law professionals are trained on matters concerning corporations. They are in charge of forming joint ventures, mergers, licensing, acquisitions, tax consultations, securities law and other legal matters that corporations involve themselves with.
Corporation law is very important since it can help in cases of transferring shares, aid in centralized management and offers guidelines regarding shared ownership by contributors of capital.