The Future of Corporate Law in Legal English
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The History of Corporations
Advantages and Disadvantages of a Corporation
Quick Guide
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Top 3 Trends of Corporate Law
Technology and Digitalization: Technology is rapidly changing the way companies operate, and this is having a significant impact on corporate law. From the use of blockchain for smart contracts and digital signatures to artificial intelligence for legal research and document analysis, technology is streamlining and automating many legal processes. In the future, we can expect to see more technology-driven innovations in the legal industry.
Environmental, Social, and Governance (ESG) Issues: Investors are increasingly focused on ESG factors when making investment decisions, and this is driving demand for greater transparency and accountability from companies. As a result, we can expect to see more regulatory and legal developments related to ESG issues, including new reporting requirements and disclosure obligations.
Globalization and Cross-Border Transactions: The global economy is becoming more interconnected, and cross-border transactions are becoming increasingly common. This presents both opportunities and challenges for companies, and it also creates new legal issues. In the future, we can expect to see more legal developments related to cross-border transactions, including new regulations and legal frameworks to facilitate international trade and investment.
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Acronym
An acronym is a word formed by combining the first letter or letters of a series of words, typically to create a shorthand form. For example, “NASA” is an acronym for National Aeronautics and Space Administration. Another example of an acronym is “UNICEF” for United Nations Children’s Fund. Acronyms are commonly used in a variety of fields, including technology, government, and the military.
NASA
National Aeronautics and Space Administration
AIDS
Acquired Immune Deficiency Syndrome
NATO
North Atlantic Treaty Organization
RADAR
Radio Detection and Ranging
NAFTA
North American Free-trade Agreement
Correct Use
“AIDS is a very serious issue that we must take into account in the workplace and involve people with inclusion.”
With the use of acronyms, it is understood that everybody knows what they mean. However, the high majority usually will not know the exact meaning of each letter, for example in the case of RADAR or SCUBA.
Initials
In each of the previous examples, the acronyms are pronounced as words, while the initials are pronounced letter-by-letter. This distinction is important to understand when using these types of abbreviations in written or spoken communication.
An initial is a word formed by combining the first letter or letters of a series of words, typically to create a shorthand or abbreviated form. For example, “LLC” is an acronym for ” limited liability company.” Other examples of acronyms include “IPO” for initial public offering.
LLC
Limited Liability Company
MOU
Memorandum of Understanding
SEC
Securities Exchange Commission
IPO
Initial Public Offering
NDA
Non-Disclosure Agreement
Correct Use
“Under the Securities and Exchange Commission’s (SEC) rules, a company that wants to go public must file a registration statement. The registration statement must include detailed information about the company’s financial condition, operations, and management.”
In this example, the full name of the regulatory agency is given followed by the initials in parentheses for the FIRST USE. The acronym is then used alone in the following sentences. This is a common practice in corporate law, as it allows for easier reference to complex or lengthy legal terms and regulatory bodies.
Abbreviations
An abbreviation is a shortened form of a word or phrase. It is a type of shorthand that is used to represent a longer word or phrase in a more concise manner, using only the first few letters of a word (e.g., Prof. for Professor), or combining parts of multiple words to form a new word (e.g., Sci-fi for science fiction).
Atty.
Attorney
Def.
Defendant
Pl.
Plaintiff
Inj.
Injunction
Liab.
Liability
Correct Use
“The pros. summoned the def. in order to offer a plea bargain.”
In this example, the full names are not given. It is understood that everyone working in the situation knows what the abbreviations mean.
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Fad vs. Trend
Fads and trends are both popular phenomena that gain widespread attention, but there are some key differences between them.
A fad is a short-lived and intense burst of popularity for a product, idea, or behavior. Fads often emerge suddenly, spread quickly through social media or word of mouth, and then fade away just as quickly. They tend to be driven by novelty or a sense of excitement or urgency and are often associated with a specific time period. Examples of fads include Manage by Objective (MBO) and Total Quality Management (TQM),
In contrast, a trend is a general direction in which something is developing or changing. Trends tend to be more long-lasting than fads and can have a significant impact on culture, society, and the economy. They typically emerge gradually and are driven by underlying social, cultural, or economic factors. Examples of trends include the rise of environmental, social, and governance (ESG), the popularity of telecommuting, and digital justice.
In summary, fads are short-lived bursts of popularity that are driven by novelty or excitement, while trends are longer-lasting developments that are driven by underlying social, cultural, or economic factors.
a fad
short and quick
a trend
long and stable
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Corporate Fact Sheet
The legal framework for corporations in the US is provided by state laws.
2.
Each state has its own corporate code, but Delaware is the most popular state for incorporation due to its business-friendly laws.
3.
US corporations are typically organized as either C corporations or S corporations. C corporations are subject to double taxation, while S corporations are pass-through entities that are taxed only once.
4.
US corporations are subject to regulation by various government agencies, including the Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS), and the Environmental Protection Agency (EPA).
5.
The total revenue of US corporations was over $38 trillion in 2020, according to data from the US Bureau of Economic Analysis. The top 100 US corporations alone generated over $15 trillion in revenue.
About the Author
Eric Froiland
Eric is a legal English teacher from the United States and has been based out of Bogota, Colombia for the last 10 years. He is the owner and founder of Legal English Innovation SAS, which is recognized as the top legal English academy in Colombia and is an official Test of Legal English Skills (TOLES) examination center.
