Corporate and business laws are also correspondingly known as company and commercial laws. Both forms of law govern commercial and business transactions as well as the core rules of business firms. Business laws refer to the laws involving sales, contracts, commercial paper, and employment law and agency, among many others. On the other hand, corporate law studies the relation between consumers and businesses under the internal rules of the firm. Both offer the bodies of law that govern all corporate and business transactions whether in public or private.
According to David Baer Attorney, business law denotes to the laws which are applied to business entities such as corporations and partnerships. These are used as reference when putting up businesses whether small or big – from corporation to sole proprietorship. Business laws stipulate how diverse business can be set up, registrations, how taxes apply to them, documentations and necessities; define diverse terms pertaining to business, making regulations, and articles of organization among many others. These also offer the supervisory schemes on how business should be conducted. Thus, the law of commercial transactions covers an extensive range of business activities. However, it does not govern such fundamentally non-commercial relationships as those involved in sequence and family law.
Business law is applied to all sectors of businesses such as estate planning, automotive, health, law, intellectual property, employment, litigation and labor, business restructuring and corporate and business. It governs all commercial and business transactions whether public or private. Business law also covers other business matters such as starting, buying or selling other businesses, handling the business by local lawyers, dealing with contracts and employees to name a few.
On the other hand, corporate law as said by David Baer Attorney includes the same laws and procedures under business laws but have five essential characteristics which shall contain:
- limited liability of the shareholders
- separate legal personality of the corporation
- transferrable shares
- investor ownership
- delegated management
These are all functional largely for corporations which are publicly retained. As per David Baer Attorney , corporate law is applied to protect both shareholders and company’s rights particularly if the corporation is involved in legal matters or fails. Corporate law can be traced back to the middle ages when primitive guilds were formed but not for common turnover. It was also during this time that diverse forms of businesses such as partnership were established.
Corporate law covers corporate governance that contains the balance of power, corporate constitution, corporate personality, director’s duties, capacity and powers, and corporate litigation. All of these are essential for the application of corporate laws. Furthermore, this also involves how shares, dealings and liquidations should be handled as well as in cases of mergers, acquisitions corporate crimes, and insolvency of the company.
Both corporate and business laws involve the rules and regulations of court, details, involved in setting up businesses petition, choosing legal structures, financing, paying of taxes, recruiting & hiring, dealing with consumers and shareholders, dealing with business and corporate crimes, solving issues, and regulating all aspects involving corporation and commercial by-laws.