Corporate Law

Corporate Law 1
CORPORATE LAW
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Corporate Law 2
CORPORATE LAW
Introduction to Companies
A company is formed via a process of registration as provided by the relevant statute.
A company may be described as a legal artificial person. A company has a separate
personality from its members and owners. A legal person may be either a human being or a
company.
The main purpose of companies is to unite people and collect capital with the aim of
running a business. They are mostly small businesses which are run by an individual most
times. The law offers protection to the people against paying the company’s debts. The only
amount they may lose is the amount used for investment in the company.
Companies have one member or more who are also referred to as shareholders and
they invest money through subscription for shares or even acquiring of shares from an
already existing shareholder which is referred to as equity capital shares capital. These shares
are paid when the company has made money. Creditors of a company include suppliers,
employees, and lenders. The debt capital must be paid and may include interest whether or
not the business is successful.