Business and law go hand in hand. Every company has legal responsibilities and regulations to follow and business students shouldn’t underestimate the impact company law has on their work. Read on to discover more about company law, how it affects businesses and why business students should study it.
By Grant Longstaff. Published 12 December 2025.
What is company law?
Company law is an area of the law which regulates how companies operate and can shape the decisions they make. In the UK it’s shaped by the Companies Act 2006, a key piece of legislation, described as “setting out the legal basis on which companies are formed and run”. The Companies Act 2006 covers the following areas:
- The fundamentals of what a company is, how it can be formed and what it can be called.
- How companies make decisions.
- The safeguards for ensuring that the officers/shareholders of a company are accountable to its members.
- Restructuring, mergers and takeovers.
- Regulatory framework.
- Business transparency.
It also other business critical considerations and decisions. Whether you’re a business student or professional, understanding company law can help contextualise the legal framework behind the commercial decisions an organisation makes.
How does company law affect business?
Company law affects almost every major business decision. From the minute a company is formed until it’s closure, though many businesses hope to avoid that situation. Below we explore some of the most common ways company law can impact business operations.
How a business is formed or structured can have legal consequences. Our blog on opening a business in the UK breaks down how various ways a company can be structured and the considerations businesses have to make.
Company law can also lay out the rules for a company’s financial operations, employment, data protection and health and safety, among others. As a business student, understanding how a company is structured and operates means you won’t overlook the risks or misunderstand your responsibilities, especially if you’re hoping to start your own business.
Benefits of business students studying company law
Not everyone wants to start their own business. However, there are a range of benefits to learning more about company law.
Better commercial awareness
Studying company law means you’ll know how businesses truly operate. This gives you both commercial insight and the legal reasons behind decisions. Many employers will value your knowledge of both, particularly if you’re looking for a role in management.
Strong decision making and problem solving
If you study company law you’ll be better equipped to analyse problems, weigh up the pros and cons and consider the interests of the business. These are transferable skills you can draw upon to solve many problems you’ll encounter in the business world.
A competitive edge
Business graduates with legal knowledge stand out from the crowd, as many employers will see this as an added bonus in potential employees. You may not use your legal knowhow in your day to day work, but having team members with knowledge on regulation and rules means a company can draw upon your expertise if needed.
Essential legal concepts every business student should know
There are some key concepts every business student should understand. These include:
- Corporate governance: This is the system of rules and practices that ensures a company is ran responsibly, transparently and in the best interests of its shareholders and other stakeholders.
- Directors’ duties: Understanding directors’ responsibilities can help businesses avoid mistakes. These rules also cover governance and accountability.
- Limited Liability: Protects shareholders from personal responsibility for company debts.
- Separate legal personality: A company is legally separate from its owners and reflects how many businesses function today.
Studying company law with The University of Law
We have a range of postgraduate masters covering the intersection of business and law which can help students expand their legal knowledge. Our LLM in Company Law covers everything from corporate compliance to stakeholders and shares, and the LLM in International Business Law is perfect if you’re looking to gain detailed knowledge of international trade and business from a legal perspective.
By studying company law you’ll gain a clearer understanding of the legal responsibilities of an organisation and develop some of those essential skills you’ll need to succeed in the business world.
Take a look at our full range of postgraduate courses for business students looking to expand their legal knowledge.
