Corporate law is a body of laws, rules, and regulations that govern the formation and operation of corporations. This field covers a wide range of subjects, from setting up and structuring companies to the legal requirements for running a business. It applies to businesses of all sizes and types, including startups formed for tax advantages and large companies formed through mergers with other businesses.
Moreover, corporate law, also known as company law, aims to help ensure that businesses follow legal standards and guarantee fairness, transparency, and accountability. In other words, it plays a crucial role in maintaining the integrity and stability of businesses within the economy.
Hence, if you’re interested in law and want to be involved in major business deals, company law could be the perfect career for you. In this article, we will address all your questions, from ‘What is corporate law?’ to What are the benefits of a Career in Company Law?’. We will also explore the company law types, its key concepts and career opportunities.
What is Corporate Law? Overview
As mentioned above, corporate or company law covers the rules for forming and running companies, as well as handling mergers and acquisitions. These laws outline the rights and responsibilities of everyone involved in running, owning, and managing a company. For example, when a company decides to acquire a smaller company or seek to raise capital through debt or equity financing, it will rely on company law to ensure the transaction is legal. Hence, this answers the question, ‘What is corporate law?’
Company law professionals handle all aspects of these deals, from conducting legal research to reviewing the final agreement. Moreover, they create agreements and bargain on behalf of clients, giving them advice on transaction plans and legal requirements.
Corporate Law in South Africa
In South Africa, company law has a complex legal framework governed by the Companies Act 71 of 2008. (*source) This act regulates the establishment, operation, and dissolution of companies. Moreover, it outlines the duties of directors and the rights of shareholders to ensure transparency within the corporate governance framework.
However, when you are launching a new business, running an existing company, or handling corporate deals, you must also know the key institutions and bodies involved in company law. They are as follows:
- Companies and Intellectual Property Commission (CIPC)
- Financial Sector Conduct Authority (FSCA)
- Takeover Regulation Panel (TRP)
- Institute of Directors in Southern Africa (IoDSA)
- King Committee on Corporate Governance
- Johannesburg Stock Exchange (JSE)
