Corporate law deals with the rules and regulations that govern corporations. In this case, a corporation is a legal entity created to conduct business. Such entities include multinational companies, investment banks, and small and medium scale businesses. Corporate law regulates the formation, ownership, and operations of such firms. So what corporate law issues would require a corporate attorney?
All corporate organizations are formed based on corporate law. In this case, business owners may register a business as a sole proprietorship, partnership, limited liability company, private or public company. Each type of business has a set of requirements and legal obligations to the state, shareholders, public, and creditors. A corporate lawyer will explain the pros and cons of each type of business from a legal perspective. More so, corporate attorneys understand the process of registering the various types of business.
Corporate Acquisition and Mergers
Corporate lawyers facilitate business acquisition and merger processes. Ideally, acquisition refers to the process through which a corporation buys another business entity. The firm acquired maybe a competitor or non-competitor firm. In comparison, mergers occur when two corporate firms at the same or different production stages combine into one entity. In these scenarios, corporate lawyers provide counsel on merging the business equity, assets, and liabilities. More so, they can help maneuver restrictions such as anti-trust laws that control monopolistic behaviors.
In some cases, a corporate organization may become insolvent. An entity is assumed to be insolvent when the business assets are not adequate to cover debt and liabilities. In such a scenario, the business has the choice of liquidation. Ideally, liquidation means selling all the business assets to get cash to pay off the debts and claims. This process involves filing for bankruptcy and negotiating with the creditors. A corporate lawyer is necessary to guide the liquidation process and ensure all legal obligations are met.
As a legal entity, a corporate organization, its owners, and managers can be sued for liability under tort and criminal law. Examples of corporate crimes may include fraud, where a business has engaged in dishonesty to acquire financial benefit. Then a corporation may be accused of falsifying information or bribery. Regarding business operations, a corporation may engage in price-fixing anti-trust violation or insider trading. Moreover, a firm may commit tax felonies such as underreporting and failing to declare taxes. These activities are illegal and require a corporate attorney to offer legal counsel and representation. Such a lawyer understands corporate law knowledge enough to defend the entity in a court.
Navigating through the intricate web of corporate law is not easy, even for top executives. It makes sense to engage the services of corporate attorneys who can support the company to fulfill all legal requirements throughout the lifecycle of your business. Contact a corporate law attorney for more information.