What does a corporate lawyer stand for? What is corporate law? These are just some of the questions you might have in mind when looking into corporate law. A corporate lawyer is an attorney that advises and assists corporate entities in form, dissolve, and transfer corporate legal portfolios. They concentrate mostly on the financial aspects of these corporate entities and not their day-to-day operations. Corporate lawyers’ main aim is to safeguard and improve the wealth of the corporate sector.
Areas of Specialization
There are four typical areas that corporate lawyers can specialize in: corporate law, tax law, litigation procedures, and corporate finance. It doesn’t matter which specific area of expertise you want, corporate law professionals are there to help you achieve your goals. Corporate law is an aspect of business that deals with disputes, such as disagreements over mergers and acquisitions, corporate write-offs, property ownership, corporate taxation, and lawsuits. In addition, corporate law professionals can also deal with such issues as corporate secrets and corporate frauds.
- Capital Markets. Corporate law professionals deal with corporate finance and the financing of corporate businesses. They work with investors as they try to fund the company. Capital markets involve many legal characteristics, such as corporate finance, working capital management, debt and financing, corporate insolvency, and commercial paper financing. Capital markets are the primary source of venture capital funding in many jurisdictions.
- Corporate Law. Corporate law focuses on how companies and individuals must obey the corporate governance laws of various jurisdictions. Some of these laws include shareholder’s equity, corporate debt, mergers and acquisitions, insolvency, advertising and marketing rights, and patents.
- Business Management. Business law addresses issues that affect a corporation’s management and officers. These areas include corporate control, corporate finances, corporate leadership, indirect or direct employees, franchisees, partnership interests, corporate law and litigation. Separate legal entities are needed for corporations to avoid conflicts of interest among the directors or owners. For example, different stocks can be owned by the same individual or group of directors within a corporation.
- Corporate Structure. Some corporate law areas require that a corporation have many different types of memberships, such as limited liability companies (LLCs), partnership units, and main articles. Main articles are special articles of incorporation created by the law in various jurisdictions that provide the structure for the corporation.
- Transfer and Sale of Shares. In many jurisdictions, the main article may also provide for the transferability of shares between corporations. This provides a way to create economic power in the hands of the board of directors if one or more shareholders decide to sell their shares of ownership in the corporation. This also allows the creation of an additional income stream for the investors.
- Stock Options. Corporate law also addresses the issue of stock options. These are securities issued by a corporation to their stockholders. They allow the directors to exercise control over the corporation by exercising the right to buy or sell all or part of the company’s shares. These shares are usually listed on a stock exchange, such as the New York Stock Exchange (NYSE).
- Corporate Liability Law. One of the main articles of corporate law relating to corporate liability involves negligence and breach of warranty. These are areas of corporate law that address how a company should handle its products, or how it should respond to negligence claims that it has made. These are areas that can be very complex for an average person to understand.
- Tax Laws. Commercial law relating to corporate law is very complex and specialized because of the many issues that come into play with tax laws. This is the area of business law that deals with paying taxes, paying employees, managing money, and other issues specific to businesses. The corporate lawyer will be able to help the company keep abreast of changes to corporate law and help it maximize its tax returns.
- Issues Concerning Insolvency. One of the most common areas of corporate law dealing with entities in bankruptcy. A corporate lawyer is responsible for handling bankruptcy matters in the corporate world. The most common issue with bankruptcy is that the creditors of the company will often attempt to take control of the business through bankruptcy. In some cases, the creditors of the corporation may take control of the company and liquidate all of its assets. The lawyer will have to be knowledgeable about all of the ins and outs of bankruptcy, as well as being able to assist companies with how to prevent this from happening.
- Issues Within The Private Company. Another one of the areas of business law that a corporate lawyer will be very knowledgeable about is the issue of incorporation. Incorporation is a legal process that happens in each state. For a company to incorporate in a certain state, it must comply with the laws and regulations of that state. The lawyer will have to be aware of all of the ins and outs of incorporating a company and be able to assist companies with what they need to do to get incorporated in the right way.