Corporate law addresses the challenges that corporations and business leaders deal with daily. Corporate law covers everything from business transactions to legal issues at work. Corporate law aims to establish a framework that allows business operations to run smoothly.
Just as there are different areas of corporate law, there are also types. The various types act as the building blocks that impact how corporations make decisions while staying compliant with corporate regulations. Some kinds of corporate law include contract law, mergers and acquisitions, corporate governance, venture capital, and corporate securities law.
If you are a business owner, you’ve likely run into instances where the need for assistance with corporate law was necessary. By working with a corporate law attorney, your company stays in compliance with the regulations of state and federal corporate laws. For more information on the types of corporate law, continue reading below.
Types Of Corporate Law: Contract Law
Business owners frequently rely on contracts to enforce legally binding agreements. Contracts may be used to sell or buy goods, insurance agreements, etc. Working with an attorney ensures that your legal contacts are drafted correctly. Corporate law as contract law deals with creating, interpreting, and enforcing legal contracts, which involves the reviewing, drafting, negotiating, and counseling of contracts, as well as legal readdressing of contracts and managing potential disputes.
Mergers and Acquisitions (M&A)
One of the types of corporate law that deals with the transfer of ownership or the combination of ownership to formulate new entities is mergers and acquisitions (M&A). Many aspects of M&A go beyond the purchasing of companies, including joint ventures, partnerships, and minority investment. An attorney can help you understand M&A corporate law so that you know the details of your mergers or acquisitions.
Corporate Governance Law
Corporate governance is one of the types of corporate law that deals with the policies and structures that dictate how a business is managed, controlled, and guided. There is a breakdown of authority roles, accountability, and power dynamics with areas of corporate law that fall under corporate governance. Corporate governance ensures that business operations are carried out ethically, honestly, and with sound corporations, markets, and financial institutions.
Venture Capital Law
Venture capital is a branch of the types of corporate law that handles the rules and limitations in venture capital investments, conducts M&A and additional transactions like private or public mergers, and carries out strategic acquisitions and equity sales.
Corporate Securities Law
Corporate securities law is an area of the types of corporate law that clarifies the regulations and statutes for the sale and registration of securities such as stocks and bonds. There are federal securities laws that corporate companies in the US must follow, which provide fair valuation and safeguard against insider trading and fraud.
Making Decisions For Your Company
Corporate law embodies areas of state and federal law that influence the decisions of startups and seasoned businesses. By understanding the types of corporate law, you can make the best decisions for your company as it evolves.