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The total number of issued shares in a company is said to represent its capital. Many jurisdictions regulate the minimum amount of capital which a company may have, although some countries only prescribe minimum amounts of capital for companies engaging in certain types of business.

 

 

 

 

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Corporate law also corporations law or company law refers to the law establishing separate legal entities known as the company or corporation and governs the most prevalent legal models for firms, for instance limited companies, publicly limited companies  or incorporated businesses .In the U.K., corporate law is a subset of companies law, and in the U.S. it is often viewed at least for teaching purposes as part of the law of business associations. In each case, corporations are distinguished from a wider spectrum of organizational forms, such as partnerships, trusts, unincorporated associations, guilds or sole proprietorships.




 

Companies generally raise capital for their business ventures either by debt or equity. Capital raised by way of equity is usually raised by issued shares sometimes called  stock not to be confused with stock-in-trade or warrants.A share is an item of property, and can be sold or transferred. Holding a share makes the holder a member of the company, and entitles them to enforce the provisions of the company's constitution against the company and against other members. Shares also normally have a nominal or par value, which is the limit of the shareholder's liability to contribute to the debts of the company on an insolvent liquidation.

 
 

 

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