Legal work in the business sector covers a range of topics. Two common areas are commercial law and corporate law. These areas are sometimes linked but follow separate rules and focus. Commercial lawyers in Dubai and elsewhere handle a range of business matters, each aligned with the specific legal area being applied.
Scope of corporate law:
Corporate law deals with the formation, structure, and governance of companies. It includes areas such as the registration of a company, responsibilities of directors, rights of shareholders, and internal policies. Matters like mergers, acquisitions, restructuring, and liquidation are also addressed under this field. The focus is mainly on the internal framework of a business entity and how it is managed over time.
Scope of commercial law:
Commercial law handles the legal aspects of business transactions. This includes areas like contracts, sales of goods, distribution, franchising, and trade practices. It may also cover matters related to banking, finance, and disputes between companies in the course of trade. Commercial law is mostly applied to day-to-day transactions that happen between businesses and between businesses and customers.
Legal structure and application:
Corporate law is generally applied during the creation and ongoing management of a company. It ensures that the company complies with local company laws and regulatory requirements. Corporate lawyers often draft constitutional documents, record board meetings, and work on matters related to corporate governance.
Commercial law, instead, is applied to agreements and exchanges made in the course of doing business. Commercial lawyers review and draft contracts, assess terms and conditions, and resolve disputes over business deals or services provided. The emphasis is placed more on the relationship between two or more parties during business exchanges.
Nature of legal advice:
Advice under corporate law is more structural in nature. Lawyers advise on how to set up a company, how to change its structure, and how to comply with director duties or shareholder arrangements. Their work supports the business entity itself.
In commercial law, advice is more transactional. Lawyers guide companies on how to conduct business deals, what terms to include in contracts, and how to respond to breaches of agreement. The focus here is on the process of trade and service delivery.
