Understanding Business Laws and Regulations

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
PART TWO.....................................................................................................................................3
THE PURI BROTHERS..............................................................................................................3
REPORT BY ZINGER................................................................................................................5
REGULATIONS OF HEALTH AND SAFETY........................................................................6
REPORT BY BARRY.................................................................................................................7
REMEDIES AVAILABLE TO YU AND DEESH.....................................................................8
CASE SCENARIO OF EYEVAN...............................................................................................8
ADVICE TO ZANANA LTD.....................................................................................................9
PART THREE...............................................................................................................................11
ADMINISTRATION OF BUSINESS.......................................................................................11
LIQUIDATION OF BUSINESS...............................................................................................11
INSIDER DEALING- MEANING............................................................................................12
WHAT IS MEANT BY MONEY LAUNDERING..................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
As business is such an important aspect of life, it should be governed by certain laws and
regulations. Company rules have been enacted to do this. Furthermore, in today's society,
businesses must work within the confines of the legislation and government control. Not only to
protect customers, but also to preserve markets, laws have been enacted (Corazza, 2018). These
regulations are enforced by various government departments at various administrative levels.
Fines, sanctions, and the failure to operate are also possible outcomes for businesses that do not
follow the rules. As a result, understanding business laws is critical to running a business. The
aim of this report is to understand the nature of legal system.
PART TWO
THE PURI BROTHERS
The three brothers Ti, Chana and Dal are planning to start a small catering business and
wishes to sell shares to the public so that they can raise capital.
Private company
They are separate legal bodies with separate properties, income, and liabilities. Restricted
liability protects the personal finances of all investors. Private company shares cannot be sold to
the general public.
Public Company
In the sense that public and private company both are technically separate corporations
with their own properties, income, and business liabilities, public limited companies (PLCs) are
almost identical to private limited companies. A public company's shares, on the other hand, can
be publicly exchanged and traded by the general public, and the securities can be listed on a
stock exchange. The only kind of business that will benefit from this type of public spending is a
PLC.
Difference between public and private company
 Shares in public corporations can be sold to the general public.
 A public corporation needs two directors, while a private company only requires one.
 Public corporations are unable to buy their own stock from their own money.
 In comparison to private firms, who have nine months to file their annual reports, public
companies have six months.

 Public organizations are expected to hold an annual general meeting, while private
companies are not required to do so.
The Puri brothers may consider forming a PLC because it would enable them to collect funds
by selling shares to the general public. Going public would also help them attract publicity,
allowing them to introduce their business and brand to potential customers.
Duties of directors under the UK law
The board of directors is a group of people who are in charge of the company's general
operations (Britannica, 2017). The Companies Act 2006 establishes seven codified
responsibilities for company directors. They are as follows:
 Act within their powers: The directors shall always act in compliance with the
constitution or the article of association (AOA) of the company and only shall use the
powers which are granted to them for the purposes intended. The constitution of the
company mainly comprises of the AOA and all other agreements and the contracts
formed by the company at the time of its formation.
 Promote company’s success: They must behave in good conscience and make decisions
that will most certainly encourage the prosperity of their organisation or of the company
for the benefit of all of its members.
 Exercise judgment independently: The directors shall make their own choices and use
their own discretion. Such decision making shall not exclude them from compliance with
the company's AOA or any agreement which they have signed.
 Exercise reasonable care, skill and diligence: The director shall use the exact level of
consideration, ability and vigilance as a fairly which an conscientious individual might.
 Eliminate any conflicts of interest: The directors shall eliminate situations into which
they currently have, or might have in future any conflicting or otherwise concern with the
interest of the company (Corazza, 2018).
 Third party benefits: The directors of the company shall not receive any benefit from any
of the third party to the business.
 Declare interests: They shall disclose the existence and scope of any actual or indirect
involvement they have in a deal or contract with the corporation to the other directors.