Types of Companies and Impact of Employment and Contract Legislation

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
CASE STUDY.................................................................................................................................3
Different Types of Companies...............................................................................................3
Impact of Employment and Contract Legislation..................................................................5
Duties of Directors and Auditors............................................................................................6
Company’s responsibility while raising capital during company and shareholder meetings 7
Resolutions Passed in the Company.......................................................................................8
CONCLUSION................................................................................................................................9
REFERNCES.................................................................................................................................10

INTRODUCTION
Legal issues are crucial when starting a company in order to influence future growth and
development. It is critical to weigh the pros and cons of various legal business opportunities and
select one which better serves the entrepreneur. The Companies Act of 2006 regulates business
in the United Kingdom, while Employment Legislation governs employment relations. The
legislation controls the business or entity in conformity with the current legislation, keeping
changing needs in mind (Fracone, 2020).
Whereas, the purpose of Employment Legislation is to resolve conflicts and preserve better
workplace relationships between employers and employees. Employment legislation ensures that
the company follows fair norms and regulations. In the absence of employment legislation,
companies treat employees unfairly in the workplace. Therefore, it tries to provide legal
protection to employees against employer misconduct. It leads to efficient workplace teams in
which both the employer and the employee are respected. The report examines the different
types of business organization accompanied by the steps for formation of a company. Also
highlights impact of employment and business legislation on provided case scenario.
CASE STUDY
Different Types of Companies
Sole Proprietorship
This form of business is simplest which is managed and operated by a single person. In
this form of business sole trader is personally responsible for the business debts. The single
entity concept does not apply in this form of business as the owner and business are considered
one and same (LANSING, 2020). The liability of the sole trader is unlimited which means owner
need to sacrifice person assets in order to pay off business debts. The examples of sole
proprietorship are freelancer, repair services, small farmers and others. The popular
characteristics of sole proprietorship are as follows:-
 Very cost effective business form
 Formation is easy
 Simple procedure with less legalities
 Confidentiality as owner need to publish document publicly