What is the primary role of regulators in corporate law?

The primary role of regulators in corporate law is to oversee compliance with corporate legislation. Regulators ensure that corporations adhere to the relevant laws and regulations that govern their operations, thereby maintaining orderly functioning within the business environment. They monitor the practices of companies to protect the interests of shareholders, consumers, and the public, and to ensure fair competition. This oversight is essential in promoting transparency and accountability within corporate governance, which ultimately contributes to the integrity of the financial markets.

In contrast, while the creation of new legislation is important, it typically falls within the purview of legislative bodies rather than regulators. Managing corporate finances is more closely associated with the roles of corporate management and finance professionals. Conducting shareholder meetings is a responsibility of the corporation itself, often facilitated by management or the board of directors, but not a direct role of regulators. Therefore, the task of ensuring compliance is central to the function of regulators in maintaining the legal framework within which companies operate.