Corporate law (also "company" or "corporations" law) is the practice or study of how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community, and the environment interact with one another. Corporate law is a part of a broader companies law (or law of business associations). Other types of business associations can include partnerships (in the UK governed by the Partnership Act 1890), or trusts (like a pension fund), or companies limited by guarantee (like some community organizations or charities). Under corporate law, corporations of all sizes have separate legal personality, with limited or unlimitedliability for its shareholders. Shareholders control the company through a board of directors which, in turn, typically delegates control of the corporation's day-to-day operations to a full-time executive. Corporate law deals with firms that are incorporated or registered under the corporate or company law of a sovereign state or their subnational states. The four defining characteristics of the modern corporation are
- Separate legal personality of the corporation (access to tort and contract law in a manner similar to a person)
- Limited liability of the shareholders (a shareholder's personal liability is limited to the value of their shares in the corporation)
- Shares (if the corporation is a public company, the shares are traded on a stock exchange)
- Delegated management; the board of directors delegates day-to-day management of the company to executives
In many developed countries outside of the English speaking world, company boards are appointed as representatives of both shareholders and employees to "codetermine" company strategy. Corporate law is often divided into corporate governance (which concerns the various power relations within a corporation) and corporate finance (which concerns the rules on how capital is used).
Company Secretaries have a pivot role to play in the Banking and Financial Sector. A Company Secretary can work as a compliance officer in a banking and financial institution and play an important role in ensuring compliance to complicated legal, regulatory and supervisory issues all the time, transcending various spheres of banking operations. So, in order to build the capacity of Companies Secretaries to work as a compliance officer in Banks and to provide them a specialized knowledge in Banking laws and practice, a paper on Banking Laws and Practice has been added as an elective paper. The students who want to pursue their career in Banking and financial sector may chose this subject. The syllabus and content of this paper has been developed in joint association of Indian Institute of Banking and Finance and the syllabus covers most of the aspects from gamut of banking. The objective of including this paper is to give a specialized knowledge of law and practice relating to banking