Company law concerns the companies and the business organizations. Corporate law is the broader spectrum which encompasses the laws governing the association and the functions of the Shareholders, Directors, Employees, Creditors, Consumers, the business community as a whole.
Different countries have various recognized forms of business entities, like:
- Company limited by guarantee: Most of the companies which are run for non-commercial purposes; where the members guarantee the payment of certain amounts in case the company goes into liquidation.
- Company limited by shares: This type of company has shareholders with limited liability.
- Unlimited company: It can be company with or without share capital; and does not enjoy limiting their liability where the company goes into liquidation.
The premise on which company law bases itself is the fact that a corporation is described to be a person in a political capacity created by the law, and endures in perpetual succession.