Do you have a brilliant business idea? Do you want to open a restaurant or a coffee and bake shop but don’t know where to begin? Contact a LawVo corporate lawyer to make your dream of owning your own business a realty.
Understanding what corporate law is all about is essential if you have a business. The corporate law makes up the rules, practices, regulations, and laws that control the creation and operation of any corporation. This body of law governs legal entities that conduct business and puts all businesses on equal footing.
What is Corporate Law?
Corporate law addresses the rights and obligations of everyone that is involved in operating a business and speci fically addresses:
- Formation of a business
- Dissolution of a business
- Various Ownership structures
- The operation of the business
- The Management and Oversight
- Shareholder Rights
- Duties of Officers and Directors
- Drafting of Agreements and Resolutions i.e., Shareholder Agreements
Who are typically the people involved in a corporation?
A corporation has many different people involved in its operation, it can have one person undertaking multiple roles or many people involved. Not everyone who works for or is involved with the corporation is an owner. Some of the various roles and functions within a corporation include:
- Directors – Directors oversee the activities of the corporation. Usually, they vote on major decisions. Depending on the size of the corporation, an owner can also be a director or the owner can elect directors. The directors are independent and are not obliga ted to agree with the owner(s).
- Officers – The officers in a corporation handle the most significant day to day decision making. They take direction from the board of directors on major decisions
- Employees – Employees carry out the day to day functions of a corporation in return for a salary.
Which Business Structure is Right For You?
- Sole Proprietorship
- Corporation (Federal or Provincial)
- Professional Corporation
Each structure has advantages and disadvantages, from personal liability issues, to tax benefits and filings, to complexity. A LawVo legal professional can help you navigate through the various rules and regulations and help you determine which corporate structure is right for you and your circumstance.