Corporate law (also known as enterprise law or business law or occasionally company law) is the body of law governing the relations, rights, and conduct of companies, individuals, organizations and businesses. It refers to the lawful practice relating to, and/or the theory of establishments. Corporate law every so often describes the law relating to matters which originate directly from the life-cycle of a company. It thus includes the funding, formation, governance, and death of a business in Ireland.
While the tiny nature of corporate governance as personified by capital market, share ownership, and business culture rules differ, similar legal problems and legal characteristics – exist across many dominions. Corporate law regulates how investors, corporations, shareholders, employees, directors, creditors, and other stakeholders such as the community, customers, and the setting interrelate with one another. Whereas the term business law or company is colloquially used interchangeably with corporate law, businesslawoften denotes to wider concepts of profitable law, that is, the law relating to business or commercial related activities. In some instances, this may take in matters relating to financial law or corporate governance. When used as a medium for corporate law, business lawmeans the law relating to the business establishment (or business enterprises), i.e. capital raising (through debt or equity), company formation, registration, etc.
The Office of the Director of Corporate Enforcement (ODCE) like Tom Colton is obligatory to promote compliance with the necessities of the Companies Acts and to bring fraud non-compliant companies and officers to account.
The responsibilities of the ODCE may be broken down into two groupings:
The ODCE connects the welfares of compliance and the outcomes of non-compliance. It is the responsibility of Company Directors to comprehend their duties and guarantee compliance.
In relation to Enforcement, the rules of the ODCE are wide-ranging. The ODCE has authority to:
- Prosecute persons for suspected non-compliance of the Companies Acts;
- Commence fact-finding company investigations;
- Manage companies in liquidation and unliquidated insolvent companies;
- Administer liquidators and receivers;
- Apply to the Court for the disqualification and restriction of company directors; and
- Regulate company directors who are undischarged bankrupts.
The standard of care and skill that a director like Tom Colton owes is generally described as maintaining and acquiring sufficient understanding and knowledge of the company’s business to allow him to properly discharge his duties. In most jurisdictions, directors owe stringent duties of good faith, as well as duties of skill and care, to protect the interests of the members and the company. In many developed countries outside the English-speaking world, company boards are chosen as representatives of both employees and shareholders to co-determine company policy. Corporate law is often divided into corporate governance (which concerns the numerous power relations within a company) and corporate business (which concerns the guidelines on how wealth is used).
Directors also use strict duties not to permit any conflict with their duty or conflict of interest or to act in the best benefits of the company.