Free US Law Dictionary

Business Associations

Companies law is the field of law concerning business and other organizations. This includes corporations, partnerships and other associations which usually carry on some form of economic or charitable activity. The most prominent kind of company, usually referred to as a "corporation", is a "juristic person", i.e. it has separate legal personality, and those who invest money into the business have limited liability for any losses the company makes, governed by corporate law. The largest companies are usually publicly listed on stock exchanges around the world, while private companies choose who their shareholders are. The defining feature of the corporation is that shareholders own the sole rights to vote under the company constitution and to appoint the directors who control the company. Companies known as partnerships have a different system of voting, whereby the partners own and vote for who controls the company. Partners may or may not limit their liability for company losses, although this is increasingly popular. Even single individuals, also known as sole traders may incorporate themselves and limit their liability in order to carry on a business. All different forms of companies depend on the particular law of the particular country in which they reside.