A Quick Explanation on Corporate Laws
Corporate law includes those laws which
govern corporations as an entity, as well as the laws which apply to the
individuals which comprise that entity. That may include
shareholders, those in leadership roles and creditors of that corporation.
Some types of corporations have limited
liability and others have unlimited legal liability for the actions or in
actions of the corporation as an entity. The laws which apply to corporations
vary according to the type of corporation, as well as the type of business
conducted by that corporation.
The law treats a corporation as an
individual, separate from those which work for or control that corporation.
That means that in most cases individuals are not held liable for the
corporation. Take for example a corporation which declares bankruptcy. Corporate
law would dictate the responsibility of that company to creditors, as well as
to shareholders. In most cases, no single individual would be responsible for
the corporation as an entity, but the responsibility would instead fall on the
corporation itself. However, shareholders
may lose their shares in order to pay off the creditors.
Corporate law often include a law firm with a myriad of lawyers that
work there. That law firm may be a corporation as well being governed by the partners in that
firm. Depending on the type of corporation formed by those
individuals, the individual lawyers may or may not be legally liable for their
actions in the courtroom and outside of the courtroom.