Corporate law is the study that includes how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community, and the environment interact with one another. Under Corporate laws, corporations of various sizes have separate legal personality, with limited or unlimited liability for its shareholders. Shareholders control the company through the Board of Directors of the Company, which further delegates their powers to the executives.
Corporate law deals with the formation and operations of corporations and is related to commercial and contract law. Until formally dissolved, a corporation has perpetual life; deaths of officials or stockholders do not alter the corporation's structure. Various laws are formed for incorporation to dissolution of a Company.
Following are some of the things to be done under Corporate law:
Promotion and formation of a Company
The process by which Company is brought into existence is called its promotion. It starts with the birth of the company. The persons who conceive the company and invest the initial funds are known as the promoters of the company. The promoters enter into agreements with various parties for the formation of the Company.
Various requirements for the formation of a Company are Obtaining DIN, availability of name for proposed company, Preparing of the AMOA and AOA, Application for incorporation of a private company,Declaration at the time of commencement of business.
Due diligence of any business is performed before purchasing a Company. Due diligence is an art of evaluation of a business transaction through various analysis. Business transactions in dynamic business environment require detailed analysis, as it involves a number of issues both financial and non-financial that requires careful and methodological investigation of business processes and the parties involved.
Removal of defunct Company
There are many companies which are registered under company act 1956 but because of various reasons they are not operative since incorporation or the subscribers to the memorandum failed to pay the subscription which they had undertaken to pay within a period of 180 days from the date of incorporation of the company and a declaration under Section 11(1) to this effect is also not filed within a period of 180 days from the date of incorporation, or a company is not carrying on any business or operation for a period of two immediately preceding financial year and not made any application within such period for obtaining the status of a dormant company under Section 455, he may initiate the procedure for removal of name of the company from the Register of Companies. Accordingly, procedure for application with respect to closure of defunct company under Fast Track Exit Scheme (FTE) is expected to be ceased and replaced by new rules which have been notified by MCA on 27th December, 2016.