LAW-LEGAL ISSUES

HA3021 Corporations Law

HA3021 Corporations Law

Answer 1

Corporate law can be regarded as the set of legal rules governing corporate life from birth (called creation) to death (liquidation), through different stages such as the increase capital, merger with other company, etc. It applies to commercial companies including corporation, limited liability Company, cooperative and participatory and civil society including law firm associates and Real Estate Company.

Company law is a set of laws and regulations governing the activities of corporations. In most countries, each shareholder has the right: to freely transfer his shares, to receive a share of net profits to be distributed to shareholders (dividend) to purchase part of the company's assets remaining after the liquidation, in proportion to the number of shares held by him, to receive information on the amount of the authorized fund category of shares issued (Dixon and Dogan, 2003, pp.39-57).

In most cases, a company takeover takes place by way of this acquisition, i.e. a company acquires a majority stake in another company (as a share deal). Furthermore, there is the asset deal, in which substantially all its assets of a company to be acquired. A sub-type of corporate takeover is the merger of two companies, in which the shareholders of the merging entities are involved in the acquiring company. The legal and economic characteristics of the corporate takeover vary greatly, depending on the size and legal form of the company. Corporate takeovers denote the attainment of control of a company. Under control, the power to define the objectives and determine the business policies is understood. From the market principles of autonomy and private property, it follows that the control attributable to equity owners.

According to the Company Law Company's shares are divided into ordinary and preference shares. The holders of ordinary shares have special rights, namely to participate in general meetings of the shareholders voting in person or by proxy, to vote and to be elected to the management or supervisory bodies of the company. Holders of preferred shares are entitled to: to a fixed (pre-determined) dividends; priority a share in the division of property in the event of its liquidation; to participate in general meetings, but without voting rights. As the share capital of company law improved, it is complemented with the emerging realities of a country.

Factors to consider in making a decision whether or not to form a corporation include the benefits of incorporation (compared to the operation of a sole proprietorship or a partnership) and the impact that can have on your business activities that form. If you incorporate your business in society, you have a choice between federal and provincial or territorial governments. In case of Silk Company, the shares she don't want to sell is because she wants to be the part of Satin co. and enjoying the advantages of being minority shareholders of the company. As a shareholder, she has a full right to decide whether to sell shares to majority shareholder or ...