What is company law?
Company Law refers to the general term for legal norms governing the establishment, organization, operation, dissolution, liquidation and other internal and external relations of companies. The purpose of company law is to confirm the legal status of a company, protect its legal operation and legitimate rights and interests, strengthen the state's management of the company, and promote the development of the national economy. From the point of view of system or normative structure, company law can be divided into formal company law and substantive company law. The company law in the formal sense, also known as the company law in the narrow sense, refers to the written company code named after the company law. Substantive company law, also known as broad company law, refers to the sum of laws and regulations related to the organization and behavior of companies.
Why company law?
In order to make it easier to set up a company and reduce the cost of negotiation between shareholders, the company's organization and behavior are limited and the behavior of the company is regulated, so as to protect the interests of the company, shareholders and related parties.