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Company Law. Key concepts and Definitions

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  • A person appointed to the board of directors who helps make major decisions and ensure the company complies with its legal obligations.
    A company director
  • A legally recognized organization that is formed to conduct business. It can take various forms such as a sole proprietorship, partnership, or company.
    A business entity
  • An entity (such as a company or organization) that has legal rights and obligations, similar to those of a natural person, including the capacity to enter into contracts and sue or be sued.
    A legal person
  • The legal process of creating a new company, including registration with the relevant authority (e.g., Companies House in the UK).
    Company formation
  • Business structure where two or more individuals share ownership and management of a business, as well as liability for its debts.
    A partnership
  • Legal documents that govern the internal structure and operation of a company, typically including the memorandum and articles of association.
    Constitutional documents
  • An individual who owns and operates a business alone, with no legal distinction between the owner and the business.
    A sole proprietor/trader
  • A person or entity to whom money is owed by the company.
    A creditor
  • A document that outlines the rules for the internal management of the company, including procedures for meetings, voting rights, and the roles of directors.
    The articles of association
  • A type of company structure where the owners (members) have limited liability, protecting their personal assets from company debts. Common in the US.
    LLC
  • A human being with legal rights and responsibilities, as opposed to a legal (or artificial) person like a corporation.
    A natural person
  • A group of individuals elected by shareholders to manage and oversee the affairs of a company.
    The board of directors
  • A legal document that sets out the company’s relationship with the outside world, including the company’s name, objectives, and initial subscribers.
    The memorandum of association
  • A company whose shares are privately held and not traded publicly. Shareholders have limited liability.
    Ltd (a private limited company)
  • An official document issued by a government authority that confirms a company’s legal existence.
    Certificate of incorporation
  • A person or institution that owns stocks in a company and thus holds a portion of its ownership.
    A shareholder
  • A government or independent authority that oversees and enforces compliance with laws and regulations in a specific sector, such as company law or financial services.
    Regulator
  • A company whose shares are traded on a public stock exchange and can be bought by the general public. Typically subject to stricter regulations.
    PLC