Corporate law regulates the foundation of legal entities, the determination of their organizational structure, management, and activities. It regulates the relations of partners and shareholders, the powers and responsibilities of governing bodies, as well as the legal provision of other corporate processes throughout the entire cycle of existence of the entrepreneurial entity.
Corporate law recognizes various legal forms of commercial (entrepreneurial) legal entities, including limited liability companies, joint-stock companies, joint liability companies, and other organizational and legal forms. The choice of form depends on the scale of the business, capital structure, management model, and level of responsibility. Selecting the right form reduces legal risks and creates an optimal foundation for business development.
Corporate governance is determined by legislation, the charter, and partner/shareholder agreements. These documents determine the rule of decision-making, the distribution of profit, the conditions for the transfer of shares, and dispute resolution mechanisms. A clearly formulated corporate structure ensures stability and reduces the probability of the emergence of internal disputes.
Reorganization includes merger, division, acquisition, transformation, and other structural changes. It is used for the purpose of business expansion, optimization, attracting investments, or reducing risks. In the process of reorganization, special importance is attached to legal compliance, the protection of the rights of creditors and partners.
The procedure of mergers and acquisitions (Mergers & Acquisitions, M&A) represents the process of combining entrepreneurial entities, acquiring shares or assets, which is directed at business expansion. M&A requires conducting appropriate legal research (due diligence), selecting the structure of the transaction, preparing and negotiating contracts, as well as ensuring compliance with the requirements of the legislation. A properly planned and legally secured M&A transaction reduces risks and ensures the sustainability and efficiency of the deal.