Business Law

Business law deals with many issues and forming businesses , such as limited liability companies , joint ventures , corporations , and partnerships is part of this . Business law also deals with litigation and rights in regard to contracts , mergers , leasing , shareholders rights and even consumer protection . Ownership of a corporation is represented by stock . The Board of Directors is the governing body of a corporation . This could be one person or how ever many the By-Laws allow . The director 's duties include selecting officers and the supervision or general control and operation of the corporation

br Usually officers that are selected by the Director are the ones that run the common day to day operation . Officers include the President , one to several vice Presidents , secretary and treasurer . There can be up to several hundred officers depending on how large the corporation is

Directors have strict duties that are outlined in the corporation laws and common law . Some of their duties are to avoid conflicts of interests , act in the best interest for the company , act in good faith and to watch over how the corporation is managed . Duties of care and skill mainly rely on the facts and circumstances that would surround a case of whether or not a director is negligent . A director must use judgment that any reasonable man would show in the same circumstances In the past court cases required that just negligence alone was not enough to find a director liable and skill was imposed only upon one certain director , but in today 's courts a more objective view for standards of care and skill and the concept of reasonable expectations of the position of director was added . This action by the directors to consider what would be in its best interests and not what the courts would consider the companies best interest is the fiduciary duty . Only a court can release a director from liability to a company

Common law has placed a variety of duties for directors that include 1 . Duty to act in good faith and in the best interest of a company , 2 Duty to act within the powers conferred on him and to exercise such powers for proper purposes , 3 . Duty not to fetter his own discretion and 4 .Duty to avoid conflicting interests and conflicting duties Insider trading and how it relates to the director 's office has two theories . The first has a liability on insiders of the corporation that deals with confidential information the a director received because of their position within the corporation that breaches the confidence they would have to the corporations shareholders and the other deals with outsiders of the corporation that deals with information that is confidential and persons who have access to this information who are directly involved with the company

The shareholders are the first in line in a corporation then it is followed by the directors , the officers and the employees . Shareholders control over the corporation is indirect . How many individuals involved with the corporation...