Corporate Law is the body of law pertaining to the practices, structure, rules, and regulations, conduct of persons within corporations. Working in corporate law is highly sought after due to its dynamic, fast paced, and exciting nature.
What do Corporate Lawyers do?
Working in corporate law, no two days are ever the same. The general undertakings of a corporate lawyer include advising businesses on their legal obligations, rights, and responsibilities.
Corporate lawyers must be well versed in contract laws, tax law, intellectual property protection etc. The lawyers represent the corporation entity, not the shareholders, employees, or board members.
In the world of business, corporations are constantly faced by challenges and need to make important decisions which, for anyone without extensive knowledge, can become stressful. With the help of a lawyer, time can be saved negotiating and come to a conclusion faster. Typically, a corporation will work alongside a mid to large sized well-known law firm as they have a bigger capacity to help and more in-depth knowledge. Some corporations hire lawyers from law firms they’ve previously worked alongside, to form their own exclusive in-house legal team to assist them with their legal matters.
Many assume that corporate lawyers spend their time preparing to argue in court, but they do quite the opposite. Their constant aim remains the same and that is helping corporations to avoid litigation – the process of taking legal action.
What is a Corporation?
A corporation is a legal entity that exists to conduct business whilst being entirely separate from its owners. Corporations are controlled and maintained by numerous owners through shares they have within the company.
Corporations are created and regulated under the corporate law found within their authority. To become a corporation, they must undergo a legal process called incorporation. Incorporation involves writing up a document known as ‘the articles of incorporation’, bringing the corporation into existence and separating the business’ assets and income from the investors and owners – known as limited liability.
Corporations can enter contracts, borrow money from financial institutions, own assets and both sue and be sued, known as corporate personhood. Corporate personhood voids shareholders, of all accountabilities for debts, lawsuits, and legal claims.
Like a government body, during the annual meeting the shareholders vote and elect a board of directors to act as their representative. The board must respect their new duty of care, act within the best interests of the corporation and make executive decisions that impact the shareholders.
How Corporate Law Can Protect Your Business
We know that ‘corporate law’ may not sound all that thrilling, but it is vital to ensure that you are protected.
Corporate law firms commonly advise corporations on mitigations and acquisitions, contracts, corporate governance, venture capital, security and protection from insider trading, fraud etc.
At Motion Paradox, we offer corporate governance services, helping you to ensure that your business complies with the rules and regulations set out by Companies House and HMRC. Combined with other services that we offer, you can rest assured that you’re saving time spent on paperwork, and you are operating within the law, efficiently and safely. Find out more about what we can do for you and your business.
Is it Necessary to Use a Corporate Lawyer?
In essence, yes, but only if you can afford one. A corporate lawyer can help you draft documents and develop a business structure. They will be able to assist you in any stage of your development and aren’t limited to only helping large multi-million-pound corporations, in fact many startups and SMEs seek help from them. However, they can be quite expensive to hire, so we advise you assess your finances and business goals first.