Company law is usually set of laws that are designed to control the formation and

managing a business. It is important for all the companies to follow the laws because
they gives everyone a factor on how to act and operate in a business company.
Company laws are made up to maintain the open market to operate other new
businesses that can enter and compete. There has been reasonable changes made in
the company law in the previous years by adding more responsibilities to the
directors. Before starting a company, there are many types of procedures that need to
be followed by the company. And to follow these procedures it’s important that the
directors have enough knowledge about company law.

It is advisable that the directors be aware of the changes made to the laws. No
company can function without being interwoven with local laws and regulations. A
good company law will help entrepreneurs manage the starting cycle and make it
more straightforward to start a business. Without these rules, regulation of the
different practices conducted in the name of the company would become exceedingly
difficult.The regulations also contribute to providing the company's clients with
assurance and security. Also they provide means of settling conflicts and shielding the
public from any misconduct to ensure improved profitability, and guaranteed survival
in a highly competitive market. Hence its important the any company should follow
the law set and mentioned in the Companies Act 2016.

Within a statute of powerful businesses, it is not easy to follow business legislation.

As a result, entrepreneurs face considerable uncertainty and lack the basic elements to
determine which legal form fits their needs. Some of the issues that a entrepreneurs
might face at the start of a company, if the laws aren’t followed may include
doubtfulness as to how long and when a shareholder or owner can enjoy limited
liability. Without the knowledge of company law you won’t know when and how you
can claim for your shares and when to enjoy the limited liabilities. Moreover, its
important for you that a company and its members are two different personalities after
incorporation. A member cannot take decisions on behalf the company or even though
a company own multiple number of properties the members of the company cannot
claim on them. Future more Anyone have the right to sue the company and the
company can sue on its own name. The company's representatives cannot make
decision on the company's behalf as mentioned in the Companies act 2016 section
20:

A company incorporated under this Act is a body corporate and shall

a) Have a legal personality separate from of its members (International Law Book
Services, 2016)

No entrepreneurship without a proper system of company law that regulates the

creation, activity, and corporate governance of companies in a country.