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Corporate Law Theory

Corporate Law Theory explores how laws shape the formation, management, and responsibilities of corporations. It examines the relationships between shareholders, directors, and other stakeholders, balancing their interests while ensuring lawful and ethical business practices. The theory addresses issues like corporate governance, accountability, and the legal rights of the corporation as a separate entity. It helps explain why laws exist to regulate corporate behavior, protect investors, and promote economic stability. Overall, it provides a framework for understanding how legal rules influence corporate operations and accountability in the broader economy.