What laws govern the formation of a company?

In Virginia, the formation of a company is governed by the state’s commercial law, which is based on the Uniform Commercial Code (UCC). Under this code, a business entity must be organized according to certain requirements, such as filing formation documents with the State Corporation Commission (SCC). Before a company can be formed, the founders must verify that the proposed name of the company is not taken by another entity, and must register the articles of incorporation with the state. Following this, the founders must develop a set of bylaws to govern the internal affairs of the company, including rules for decision-making, shareholders’ rights, and other corporate matters. The founders must also appoint a board of directors to oversee the company’s business operations. Finally, the founders must obtain any relevant licenses or permits, depending on the type of business, and open accounts with financial institutions. Once all of these steps have been completed, the company is officially formed and can begin conducting business.

Related FAQs

What is the procedure for taking legal action against a business?
What is the legal definition of a business partnership?
How is intellectual property enforced?
How does contract law protect businesses?
What is the procedure for voting on resolutions at a shareholders' meeting?
What is the definition of professional negligence?
What is the role of a commercial lawyer?
How does the law protect minority stakeholders?
What are the consequences of insolvency?
What legislation governs the regulation of financial services?

What laws govern the formation of a company?

Related FAQs

Related Blog Posts