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CONSULT THE BEST CORPORATE LAWS LAWYERS IN CHHINGCHHIP, AIZAWL

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Lawyers for Corporate Laws in Chhingchhip, Aizawl

Corporate law is also known as company laws. When a person decides to open his/her own company or wants to start their own business it just cannot be done by a person's will and there are certain rules and regulations involved and that need to be followed. The laws which contain those rules and regulations are called corporate law or company law. In this blog, we will discuss what is corporate law? What is the difference between corporate law and company law? What are merger and acquisitions laws? How does a corporate lawyer work? What company a lawyer does for the company?

What is corporate law?

Corporate law or company law is a set of laws, rules, and regulations which help in the formation of a corporation or helps in establishing a company. It involves all the rights, liabilities, and obligations that a company needs to follow to run a business or the rules which are involved in the business activities.

What is a company or corporation?

A company or corporation is a separate legal entity. When a group of people joins hands to start their business by putting their investment and conduct their business as separate legal entities are called the corporation and the name on whose business is conducted is called the company which is considered as a legal person in the eyes of law. A company or corporation has some characteristics such as:

1. Separate Legal Entity or Legal Person: The group of people invests their money in a corporation or company and then that company or corporation runs the business or it can be said that a business is run by a company, that makes the company a separate legal entity or a legal person which also means the company is responsible or every act, not the persons associated with it.

2. Limited Liability: The liability of the people or the investors become limited to the amount they have invested in the corporation or the company. In case the company gets sued then the investors won’t be liable and the assets of the company will be at stake.

3. Transferable Shares: Transferable share is a feature that helps in making the business continuity that means if the owner or the investor wants to leave or wants to discontinue from the corporation then there is no need to put stop to the business the shares of such investor or owner can be transferred before leaving.

4. Delegated Management:  It means there has to be a board of directors who will delegate the works and distribute them among others.

5. Investor ownership: The investor cannot be responsible or liable, his only work is to invest the money therefore he is not directly involved in the business but they can ask for help or advice for the company.

Need for Corporate Laws: Corporations start from small work with small amounts of money and some powers in the market but sometimes when it starts to earn a profit, they become powerful as well and they start to hold the grip over the market. Corporate law does not only help in making or starting their own business but also to maintain fair competition between the businesses. To give equal opportunities to all the business and corporation by maintaining the business activities corporate laws are required or needed.

Work of Corporate Lawyers or Corporate Attorney: Corporate lawyers work as a backbone of any business which means they are directly involved in the business activity but they help in conducting business by providing legal advice and dealing with the legal matters or issues of the company which helps the business to expand and earn profit.

Corporate lawyers or business lawyers have to deal with the laws that are related to their companies specifically and also need to be good at other corporate laws like; Contract Laws, Intellectual Property Rights, Income Tax laws, Negotiable Instruments or laws related to bankruptcy.

Corporate matters that corporate lawyers need to deal with: A corporate lawyer helps in expanding the business from the back foot of the company or the corporation, the legal advice that a company or a corporation or business needs to grow and earn profit without getting involved in any legal issues or without violating any laws. lawyers help them in running the business hustle-free and problem-free.

The corporate lawyers may also deal with certain other corporates matters such as:

  1. Merger and Acquisitions: As its title suggests Merger and Acquisitions mean when a business or corporation or companies merge together or combine or when one company or corporation acquires another company or corporation is merger and acquisitions. Merger and acquisition can either help the business to grow more or may downsize the business. A corporate lawyer helps the business and company with these matters which also involve the transfer of the ownership of the company or the business, due to merger the assets of the company or the business also gets combined, liabilities of the company or the business also might change.

  2. Corporate Insolvency: When the company or the corporation did not have a sufficient amount of money or assets to clear the debts of the company that is called corporate insolvency. When the company or the corporation is going through this matter the only option that is left with the company or corporation is liquidation. Liquidation means when the company or the corporation converts the business into cash to pay the debts of the company or to the investors.

  3. Crimes related to corporate: When there is a benefit there are chances of the commission of a crime. Once the business starts earning a profit, the people running the business get more and more greedy sometimes which might make them commit corporate crimes. Some of the crimes which are common in the corporate world are:

1. Insider trading: Insider trading means when any member of the company or the person from the inside trade the non-public information of a public company is insider trading. The non-public information can be related to stock or securities or bonds etc.

Violation of Antitrust: This crime basically describes when one corporation or company to get a hold on the market fix the price or for monopoly fix the price then the company is committed antitrust violation.

Corporate Frauds: When to establish the company or the corporation and to earn profit and power and to grow, the company does any illegal activity or breaks any corporate laws to get the benefit it is called corporate fraud.

Bribery: The most common crime in any country especially chhingchhip, aizawl unfortunately is bribery, when someone does something which otherwise that person won’t do but for the exchange of money does or does something for money which in normal circumstance won’t do is bribery.

False Claim: The other crime which becomes common is false accusation. To earn money or profit shows wrong information to the government or accuses falsely for money is a false claim, which increases day by day.

Breaking rules: Sometimes when the business or the company starts to grow the owners or the people running the business do not like when something or some rules creates a hindrance, hence they break some of the rules or laws which are coming in their way.

Conclusion: Corporate laws include laws related to business such as company law, income tax law, contract law, laws related to bankruptcy etc. To maintain a healthy competition among the company or the corporation and to give fair chances to the business or the company or corporation and less monopoly the corporate laws are incorporated. Corporate laws are the laws, rules and regulations which are required to run a business or for the establishment of a corporation or company. To deal with the legal matters of the company or the business they require the help of the corporate lawyer who helps them in giving legal advices related to their business or company for which either the company appoint an In-House Counsel or they mostly prefer to get help from the small or big law firms which deals with corporate affairs.

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