14 Corporate Law Indicators and Risks

Subject(s):

Limitation of liability — Choice of law

This chapter discusses the role of choice of governing law and the main corporate transactions, and compares shares to bonds. It discusses risk mitigation techniques, summarises the key indicators of corporate law around the world, and examines the comparative law of the key indicators of financial assistance to buy own shares and director personal liability. It discusses other key indicators of corporate law, including the veil of incorporation, bankruptcy consolidation, subordination of shareholder loans, maintenance of capital, shareholder equality, minority protections, corporate governance, takeovers, and corporate guarantees. It lists the main corporate transactions and explains why the free choice of governing law has less of a role to play in the main corporate transactions. It explains that the risks are mitigated mainly by the formation of subsidiaries as opposed to a choice of governing law.