Corporate Finance law
Corporate finance law encompasses the legal regulations and principles that govern the financial activities of corporations. It covers areas such as capital structure, financing, mergers and acquisitions, and corporate governance. This body of law aims to ensure transparency, fairness, and accountability in corporate financial transactions and decision-making.
5 Key excerpts on "Corporate Finance law"
eBook - ePub- R. Girasa(Author)
- 2013(Publication Date)
- Palgrave Macmillan(Publisher)
...CHAPTER 1 Overview of the Law of Finance Introduction Law has been described as a seamless web that for convenience and specialization is divided into a number of categories. Thus, students taking an introductory course in the study of law may be taught that the subject is divided into the categories of public or private; substantive or procedural; civil or criminal; national, regional, or international; and other artificial distinctions. Persons who have studied law for many decades see its unifying aspects as well as the subtleties of its categories. Just as a physician may specialize in one category of the human body, most lawyers tend to become competent in one particular area of the law such as criminal law, tort law, or corporate law. Nevertheless, in today’s complex society an attorney must also understand the interrelationship of legal aspects outside of their competence. Corporate attorneys in the past concentrated on legal aspects of mergers and acquisitions, reorganizations, duties of corporate directors and officers, contractual issues relating to public and private offerings, and the many other substantive areas in which executives are engaged. However, today they must become aware of the possible criminal and tortious behavior of their clients. The scandals of the past decade, which have been discussed exhaustively ad nauseam in corporate offices by corporate attorneys, and in accounting firms, led to the passage of significant congressional enactments that affect finance. These include the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010. When this author attended law school in the late 1950s, criminal law was given very low priority, consisting of a two-credit course that mainly covered acts of violence by poor individuals living in slum-like conditions. There was no discussion of white-collar crime inasmuch as such behavior almost never resulted in prosecution and/or imprisonment...
eBook - ePubEconomics, Capitalism, and Corporations
Contradictions of Corporate Law, Economics, and the Theory of the Firm
- Wm. Dennis Huber(Author)
- 2020(Publication Date)
- Routledge(Publisher)
...v. Cahall, Rec’r., 13 Del. Ch. 384, 118 A. 1 (Del. Ch. 1922). Loft v. Guth, 2 A.2d 225 (Del. Ch. 1938). Malone v. Brincat, 722 A.2d 5 (Del. 1998). Prod. Res. Group, L.L.C. v. NCT Group, Inc., 863 A.2d 772 (DE, 2004). SEC v. Chenery Corp., 318 U.S. 80 (1943). Authors Robé, J.-P. (2011). The legal structure of the firm. Accounting, Economics, and Law: A Convivium, 1 (1), 1–85. doi:10.2202/2152-2820.1001. 12 The contradictions of corporate law, economics, finance, investment, accounting, and the theory of the firm Introduction Although, as expected, there is vigorous disagreement among academics, legal scholars, and lawyers regarding the interpretation of corporate law and its relation and application to economics, finance, investment, and accounting, the disagreements are quite insignificant compared to the two things they have in common, to wit, assumptions, and therefore conclusions, contrary to law—the equivalent to the assumption of the can opener in the desert and the Humpty Dumpty principle where the terms they use mean what they want them to mean, regardless what they actually mean. In the previous chapter we saw how contradictions in court rulings, from state supreme courts to the United States Supreme Court, permeate the field of corporate law. Judicial rulings contradict contract law, property law, agency law, trust law, and corporate statutory law. The contradictory court rulings are fed by, and in turn feed, economic, finance, investment, and accounting research, and research in corporate law. To review, much of the economic and social structure of society includes corporations and therefore corporate law. Corporate law is an amalgamation of contract law, property law, and agency law. Economics is the science of the allocation of scarce resources. Property constitutes resources to the owner of the property...
eBook - ePub- Andreas Kokkinis(Author)
- 2017(Publication Date)
- Routledge(Publisher)
...6 The need to reform the corporate law framework as it applies to financial institutions Towards financial sustainability The previous chapters argued that despite the broad range of post-crisis reforms, the shareholder-centric character of financial institution corporate governance persists through the significant remaining components of variable remuneration, the pressures from the market for corporate control and institutional shareholders, and the application of directors’ duties on financial institutions in the same manner as in generic companies. In the same vein, most scholars 1 still perceive financial institution corporate governance as an exercise of aligning the interests of senior managers with those of dispersed shareholders, 2 thus obfuscating the potential complementarity between the corporate regime and prudential regulation. The argument advanced here is that revisiting the theoretical understanding of corporate law, as applying to the financial sector, under the prism of a regulatory approach is a prerequisite to the successful implementation of existing reforms. Indeed, reconsidering financial institutions’ corporate law framework through the perspective of prudential regulation objectives would serve as a clear theoretical basis for a radical reform of financial institutions’ corporate objective and directors’ duties (to be discussed in the next chapter) to reflect the change of focus from profit maximisation to entity preservation...
eBook - ePubInternational Insolvency and Finance Law
Legal Constants in Times of Crises
- Daniele D'Alvia(Author)
- 2022(Publication Date)
- Routledge(Publisher)
...1 The Times of Crisis between Insolvency and Financial Law DOI: 10.4324/9781003278320-2 1.1 The Legal Theory of Finance In 2013, Katharina Pistor wrote a working paper at Columbia Law School titled “A Legal Theory of Finance”. 1 In it, Pistor claims that finance is legally constructed; this means that finance does not stand outside the law. For example, Pistor makes the case that financial assets are disciplined by legal rules and regulators. Although this can vary from jurisdiction to jurisdiction, the legal enforcement of financial commitments is present in every jurisdiction and can influence the scope of the entire financial system. In other words, without legal enforcement, contractual promises cannot be honoured, and the capital outflows or inflows between jurisdictions cannot be effective. For this reason, market participants often design financial instruments that are not in conflict with the existing rules in different jurisdictions. It means that contract law plays a major role in contemporary financial markets, and contractual rules are able to provide financial operators as well as the financial industry with new contractual devices, which – according to Pistor – in turn, seek legal vindication. 1 Katharina Pistor, “A legal theory of finance” (2013) Paper Number 13-348 Columbia Law School – Public & Legal Theory Working Paper Group 13. In claiming legal vindication, financial operators can try to mitigate uncertainty and prevent liquidity volatility. According to Pistor, liquidity is not a free asset, and when the future shows a liquidity scarcity, the refinance of financial commitments becomes more challenging...
eBook - ePubLegal Approaches and Corporate Social Responsibility
Towards a Llewellyn's Law-Jobs Approach
- Adaeze Okoye(Author)
- 2016(Publication Date)
- Routledge(Publisher)
...5 Why not corporate law? Different theoretical conceptions of the company have been intimately embroiled in the effort of company law to justify the vesting of substantial power in corporate management. 1 5.1 Introduction Corporate law as the law of corporations is often seen as the natural home for addressing questions about the relationship between law and CSR. This is why some scholars advocate having CSR issues integrated into this basic state legal framework, thus creating an identifiable framework from which CSR initiatives would flow. Ward puts it thus: The argument here would be that sustainable development (and/or other values associated with CSR) should be integrated within the basic legal framework, governing the formation and functioning of business enterprises – not exclusively as an ‘add-on’ in the form of environmental, labour or anti-corruption legislation – to name a few examples. 2 Frynas also suggests that: Policy makers should make a concerted effort to re-write company law and other regulatory instruments to increase the power of ‘non-traditional stakeholders’ and to require companies to become more transparent about all of their activities. Corporate governance reforms will help companies to make better social and environmental choices in front of shareholders. 3 Furthermore corporate law represents a peculiar platform because it is the identifiable state legal framework that is common to most states in the world. 4 This chapter examines corporate law’s potential to drive this wider CSR agenda within corporate law. It demonstrates that whereas corporate law as a substantive body of law can handle the issue of corporate legitimacy relevant to CSR, it only chooses to partially address this issue...
