Company Law assignment question helps law students to comprehend Company Law, apply it and provide solutions to Company Law Assignment Questions. Through company law assignment help, students have access to professional assistance, which sheds light on the legal study of operations and structure of corporations and organizations.
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What is Company Law?
Company Law, also referred to as corporate law, is a set of laws, rules, and regulations that safeguard and govern the structure and operation of a company.
This set of laws regulates legal entities which exist to carry out business. Company laws outline the rights and responsibilities of all the people involved in structuring, owning, managing, and operating a company. This brings about corporate governance.
The term company is a legal establishment to conduct business and transactions. It’s a separate legal body from the people who structure it. Like any other person can run a business, a company can do the same in its name.
A company is either a public company or a private limited company. A managing director or director heads every company. Under the companies act, private limited companies are subject to a memorandum of association with the registrar of such companies. Every company shareholder is known as a member, while every member may not be known as a shareholder.
When one owns a section of a company, their liability is limited to the company’s ownership. They can’t lose more than what they have invested in the company.
Company laws are in place to spell out such policies, ensuring corporate governance.
Significant Characteristics of Company Laws
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Company owners pour their resources into a separate legal entity. That entity can use and sell those assets. They form an establishment that operates by itself. Creditors can’t easily take the help initially given to the owners. Such a company stands a chance to grow through essential corporate governance.
When a company-issued is, only the company’s assets get seized. Company Law states that the company owner’s assets are free from seizure. A company’s limited liability allows company owners to risk and expand their investments. This also allows them to exploit their potential in corporate finance and increase the company’s value to the shareholders.
A company doesn’t have to shut down when an owner no longer wants to invest their shares in the company. A unique feature of companies is owners can transfer shares without the stress and pressure that comes with the transfer of ownership in partnerships.
Companies have definite operation structures that enable them to conduct business and internal affairs. Companies have a board of directors and officers. These groups have designations that spell out their decision-making and authority.
The board is in charge of effective decision-making. Every shareholder elects it.
Officers, on the other hand, handle daily company operations. They take the lead in conducting transactions and running daily business.
Owners are the core decision-makers but don’t run the company’s daily operations. Investors are also entitled to company profits. Owners are also entitled to profit-sharing in measure of their ownership interests. Board members are elected when members vote.
Why Do Company Laws Exist?
This topic has to be addressed in the Company Law Assignment Question. Galaxygrades.com law expert writers say that company laws are tailored to be friendly for business. The rules exist to make it easy for companies to conduct business. They ensure that companies act predictable manner that people can rely on.
Divisions of Company Laws
Any student writing an assignment about company law must know that there are two major divisions of company laws. Our law experts state them as follows;
Corporate governance is the study of the relationship between executive or senior members of a company. This includes all the directors, shareholders, and company owners.
Corporate finance is the study of sourcing finances for funding and creating the company’s wealth. A code of conduct has to be implemented by the managers to enhance the company’s value and reputation before the stakeholders.
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Week 1 Corporate Law Assignment Questions Sample Answers
Corporate insolvency is more of bankruptcy. It’s a state where a company cannot pay its debts to its creditors. Such companies end up in cash flow insolvency.
A memorandum of association (MOA) is a document with legal requirements prepared legally for the structuring and registration of a limited liability company to spell out its association with its shareholders. A Certificate of Incorporation is enough evidence that all the requirements of the company activities have been complied with.
Perceptual succession is a company’s continuation in operation despite bankruptcy, death of a board member, membership change, the exit of directors or shareholders, transfer of share capital, etc.
A sole proprietorship is an unincorporated business that has one owner. This sole owner pays income tax on all the profits made by the industry. Such business organizations don’t need shareholders or directors—just the sole owner. The process of decision-making is made more accessible.
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