Company law.

Company law is a set of laws designed specifically to regulate business. Throughout the world, most businesses face similar problems; the must determine their organizational form; duties to clients, investors and employees; and abilities to minimize losses if the business fails.

When people wish to associate for business, the first questions they have to consider is whether to form a limited company, a partnership or a sole proprietorship.

A limited company is a kind of legal person with the right to sue and be sued. The members of a limited company have limited liability. This means that if the business has difficulties, the members have to pay its debts only up to a certain limit. The internal management of the company is regulated by a document called the Articles of Association. The Articles have rules about holding meetings; members’ voting rights; issuing shares; and appointment and removal of directors.

A partnership is a way to run a business for to or more people. Partners share management, profits and liabilities to debts and have unlimited personal liabilities for debts to creditors.

A sole proprietorship is a business owned and operated by a single person. A sole proprietor alone is responsible for management and for any debts. Some examples include small retail stores, doctors’ and lawyers’ practices and restaurants.

The money needed to start a business is called capital. If a person does not have enough capital to start a business, he may borrow some from the bank in the form of a loan or overdraft. Selling shares is another way companies raise capital.

A business may be terminated (dissolved) when its registration is cancelled or it goes bankrupt – that is, it cannot pay its debts.

Violation of company law may cause both civil suits and criminal prosecution. For example, it is illegal if a company is engaged in an activity which is outside its capacity. Such activity is called ultra vires and may cause civil suits.

A possible cause for criminal prosecution is insider trading. This means using knowledge to gain private profit when buying and selling company shares.

Criminal law.

Criminal law is a branch of public law that defines crime and fixes punishment. Crime is an act which the state considers to be wrong and which can be punished by the state.

There are usually two important elements of a crime: the criminal act itself (Actus Reus) and the criminal state of mind of the person when he committed the act (Mens Rea).

Crime has three major types: crime against person; crime against property and crime against public order.

A crime against person always involves force or threat of force against the body of another (murder, battery, extorting, kidnapping, etc).

Crimes against property are distinguished by an absence of force against person and loss of property (theft, embezzlement, forgery, burglary, arson, etc).

Crimes against public order include rioting, treason and most of the “victimless” crimes (prostitution, sale of pornography, drug deals).

According to their gravity, crimes are divided into felonies and misdemeanors. Felonies are the most serious crimes. Misdemeanors are less serious.

One important principle of criminal law is presumption of innocence. Under this principle the defendant is considered innocent until the state proves his guilt beyond reasonable doubt.

Each crime must be punished. Punishment may be different. Punishment is fine, imprisonment, or any other penalty provided by law and imposed by the court. The punishment for a felony is imprisonment for at least one year or death in some limited cases. The punishment for a misdemeanor is fine or imprisonment for no more than one year.

The ultimate penalty is capital punishment. Capital punishment is a matter of constant debate. Supporters of capital punishment argue that it deter others from committing crimes. Many also believe that death penalty is justified, because it is unjust when murders are allowed to live while the victims cannot. Opponents argue that execution is cruel and uncivilized. They also state that there is no evidence that death penalty is a good deterrent. But is a mistake is made, it’s too late to correct it once the execution has taken place. Capital punishment has been abolished in many countries and Europe is free of it with only exception of Belarus where it is actively used.

Probation is a type of punishment, which allows the convicted person to avoid imprisonment and to remain at liberty for a prescribed period of time under the supervision of a probation officer. A convict serving in prison may be released early on parole because of good behavior. Pardon releases the convict from the entire punishment.

The purpose of punishment is to reform and rehabilitate criminals and to deter them and other from similar behavior in the future.