Laws and government can implement regulations that can have a positive and/or negative impact on the company. A company's failure to comply with established norms can lead to its demise. Capital Bank Grenada is an unfortunate example of a company that failed or did not have the proper documentation; legal capacity to carry out banking activities. Unknown to customers, the bank was operating illegally. In case of failure to comply with the requests of depositors/customers; Legal action was initiated which led to the closure of the business. For this reason, compliance with the established laws allows the company to build a respectable and substantially attractive reputation