The Corporate Governance Article Example | Topics and Well Written Essays - 2000 words

The Corporate Governance - Article sampleIn civil-law countries, corporation law consists of statute law in commonalty-law countries, it consists partly of the ordinary rules of common law and equity and partly statute law. Two fundamental legal concepts underlie the whole of keep company law the concept of legal personality and the theory of limited liability. Nearly all statutory rules ar intended to protect either creditors or investors. There are various forms of legal business entities ranging from the mend trader, who alone bears the risk and responsibility of running a business, taking the profits, but as such non forming any association in law and thus non regulated by special rules of law, to the registered company with limited liability and to multinational corporations. In a partnership, members associate, forming collectively an association in which they all move in management and sharing profits, bearing the liability for the firms debts and being sued jointly a nd severally in congress to the firms contracts or tortuous acts. All partners are agents for each other and as such are in a fiduciary relationship with one another. Limited-liability Companies or Corporations The company or corporation, unlike the partnership, is formed not simply by an agreement entered into between its first members it must also be registered at a public office or courts designated by law or otherwise obtain the official quotation of its existence. Under English and American law the company or corporation is incorporated by register the companys constitution (memorandum and articles of association, articles or certificate of incorporation) signed by its first members at the Companies Registry in capital of the United Kingdom or, in the United States, at the office of the state secretary of state or corporation commissioner. THE heavy FRAMEWORK GOVERNING BRITISH companies overview In Britain, the vast majority of companies are incorporated under the Companies execution 1985. The Act creates a distinction between private companies and public limited companies. Only a small fraction of companies incorporated in Britain are registered as public limited companies.Nevertheless, from a corporate brass perspective, they are of primary importance. A private company cannot apply to have its equity traded on a stock exchange, and debates about corporate governance in the United Kingdom have focused most exclusively on companies that are publicly quoted. In the United Kingdom, most public companies that have their shares quoted for barter have been admitted to the Official List maintained by the Stock Exchange and are known as listed companies. A listed company is obliged to comply with the Listing Rules of Londons Stock Exchange (commonly referred to as the Yellow concur).The Yellow Book regulates the conduct of key transactions and imposes substantial disclosure obligations on listed companies.