It is fundamental to good business practice that we are all working within a clear and fair framework, and that is what makes corporate law one of the most important branches of law we have.
Put simply, corporate laws are the obligations and duties that companies need to follow when they are formed, and as they operate. These laws also safeguard the interests of those companies, and the working relationships they form with one another.
This means that corporate law covers an incredibly wide range of matters, and continues to evolve and grow as our business practices change. Corporate solicitors are responsible for understanding all the complexities and nuances businesses are subject to, and guiding their clients through growth and development within that framework.
Here’s what you need to know.
It’s a tree of many branches
Corporate law is involved in so many different areas that directly impact businesses, and those in charge of them, whether it’s just starting up, or has been established for many decades already.
Board meetings and secretarial matters, but also mergers and acquisitions (or demerging), shareholders’ and directors’ rights and responsibilities, articles of association and the buying and selling of shares.
It’s not the same as commercial law
At times, the terms ‘commercial law’ and ‘corporate law’ are treated as interchangeable, but they shouldn’t be. Corporate law takes in the full picture – sometimes referred to as the business’s ‘lifecycle’. By contrast, commercial law is involved in the day-to-day aspects of running a business – factors like intellectual property, supply agreements, and data handling.
Businesses should be underpinned by professional support
Working with a corporate solicitor is not a ‘once in a while’ phenomenon. Business owners who are evaluating their business growth and development could benefit from building a long term relationship with an experienced corporate solicitor. That way, they can be assured that they have consulted an expert who understands their duties and rights, rather than ad hoc corporate law advice further down the line (which may come too late).
The right corporate solicitor can look ahead, and work out ways to strengthen the business now, in preparation of a stronger future.
The stakes are high
There can be significant consequences for businesses that are not underpinned by this expert support. If you fail to fulfil your obligations, or overlook an obligation or unwanted addition to a contract, then you could face steep fines, lengthy court battles, or even time in prison.
Whether you manage to avoid these consequences or not, you cannot be sure that a single mistake won’t have a devastating impact on the business’s reputation. A single mistake or oversight can cause a business to plummet in its customers’ expectations, and may just cause the doors to close permanently.
We are not expected to know the ins and outs of corporate law. After all, understanding it (and following its evolution) is a full-time job, and ensuring your business is operating within that framework is impossible, unless you’re an experienced solicitor. The only sensible option is to start forming that key relationship now, and putting your business’s future in the hands of someone who understands how to help you protect its interests and yours.
