Corporate Law

Corporate / Business Law

Corporate law or Company law in India describes the laws regarding owners, shareholders, employees, and all other stakeholders in the company. A company is a separate legal entity. This means that its identity is different from its individual owners/ partners. There are many laws governing the different aspects of a company. These may be related to contracts and agreements, regulations, rights, or dispute resolutions. The laws are enacted through and by the Direct or Board of Directors of a company depending on the type of company it is.
Types of Companies
There are 3 major types of companies under Indian corporate law. These may or may not be separate legal entities. Here are some types of companies:

  1. Private limited company: The company is privately owned and can be owned by 2 to 200 people.
  2. Public Company: The securities of a public company can be traded on the stock exchange by the shareholders. Such a company has a minimum of 7 shareholders. The functioning of public companies is mostly transparent.
  3. One-person company: This kind of company has sole proprietorship under the Companies Act. The sole owner has limited liability in this case.
Laws Governing the Corporates
Most corporates under the Companies Act must deal with employment issues, selling and buying of stocks, compliance with regulatory bodies, taxation, and much more. Legal assistance is often required to make these decisions. Different types of companies are governed by different types of laws. These laws are mainly stated under the Indian Companies Act. The Indian Companies Act has seen several amendments over the decades. Some important Laws are mentioned here:
  • Securities and Investment Laws: Securities of a company such as shares, stocks, bonds, etc. are governed by the SEBI Act 1992 and other legislation.
  • Financial Market Regulations: There are many laws related to market regulation in India. Companies are expected to abide by these laws that are made keeping the functioning of the Finance Ministry, RBI, and SEBI in mind.
  • Legal Dispute Resolution: Corporates are often involved in many internal and external legal disputes. These disputes are usually settled with the provisions in the Companies Act as well as the Arbitration and Conciliation Act of 1996 in courts of law. Some cases are even settled outside the court.
How Can a Corporate Lawyer Help You?
A company, as a legal entity or otherwise, must deal with several other legal entities, individuals, and organizations. The requisites to deal with each of these are different from the others. Many corporates have an inhouse corporate lawyer who advises on issues related to corporate law. A lawyer can help make business decisions in compliance with statutory conditions and other legalities. Some areas in which a corporate lawyer can help are:
  • Mergers and Acquisitions
  • Investment
  • Compliance with employment laws
  • Taxation
  • Competition
  • Insolvency and Bankruptcy
  • Arbitration and Litigation
  • Banking and Finance
  • Financial Regulation
 
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