Company law is the body of laws, rules, regulations and practices that govern the formation and operation of corporations. It's the body of law that regulates legal entities that exist to conduct business. In short, it is a method of governing the company like a sovereign state, instating its own customs, policies and laws to its employees from the highest to the lowest levels. Company governance is intended to increase the accountability of your company and to avoid massive disasters before they occur. A company can also hold meetings with internal members, such as shareholders and debt holders - as well as suppliers, customers and community leaders, to address the request and needs of the affected parties.