Company law deals with the intricate relationships between companies and
their shareholders, creditors, regulators and third parties. A company is a
legal fiction, a creatutre of the law and as such the law is based on statute
and common law.
A company has shareholders (those who invest in it and get
shares in return), a board of directors (human beings who manage the affairs
of the company) and creditors (those to whom the company owes money). A
company has to function within the law and depending on its size and the type
of business it operates it may be subject to more or less regulation.
As business becomes increasingly global, company lawyers in one jurisdiction now have to be more and more aware of the company laws of other states and
Company law is a bit like constitutional law- it
focusses on the way a company is managed , on the responsibilities and duties
of the board to the company and the rights and remedies (and sometimes
duties) of shareholders and creditors.
Company law is essential to anyone planning to practise commercial law.