Legislation is a term that has four meanings:
- Legislative power - a power to legislate
- Law of the state - a set of laws currently in force
- Legislative process - the process of adopting legislation (constitution, constitutional laws, laws and by-laws)
- Legislative Assembly - Parliament of the State
The meaning of “the law of the state” in terms of surroundings of the organization is crucial. Currently, much of the organizations operations are fundamentally influenced and regulated by law. The laws solve the functioning of the organization (e.g. business legal form), employing workers, trading, tax obligations, the effect of the organization on the environment.
The law of the state consists of a set of laws containing the different legal standards. These, inter alia, determine the rights and obligations of each organization, depending mainly on their legal form. The legislation is thus a part of the external standards (requirements for operation), which a business or an organization must respect in their establishment and operation and it represents for the organizations one of the external constraints.
Legislation of modern democratic rule of law (in all four meanings) is based on the concept of the public power.