Business Law: Corporate Veil, Directors' Duties, Contracts, Employment Tests, Negligence

Business Law

INTRODUCTION
Business laws makes formation of business organization done within the help of legal
framework that has been formed under such laws. The law that is related over forming of
business organization in legal manner possible. In this law proper guidelines is been given which
makes business organization to be created in more effective manner. Also it involves goals and
objectives achieved that has been formed by an organization. Further the file is based upon
corporate veli, also companies act 2006 is been covered. In the end negligence is been covered.
TASK
Question 1
Discuss with the help of case law five ways of common law in which court has been piercing
corporate veil.
Piercing of corporate veil means that kind of legal decision which has been treating with
rights and duties persist by an organization. In it rights and liabilities of shareholders is also
covered. Relevant case related to corporate veil is Prest v Petrode in this case English Supreme
Court has made review upon the principals that shows determination over circumstances. Also
weather a court should include a company as separate legal entity or not. This has been further
included within legal consequences of company's act (Kumar, 2019).
Question 2
Discuss about duties that is owned by directors in relation to case study
In Companies Act 2006 there are general duties in relation to directors that has been
specified within section 171 to 177. These duties are related to creditors, shareholders and
employees. These duties include interest of stakeholders, good faith and promotion which makes
organizations objectives achieved. Also duty of reasonable care and due diligence. Relevan case
law related to it is Hogg v Cramphorn limited In this case directors does not permit over
exercising power that is delegated over making organization within circumstances that made
director to be under fiduciary position over exercising powers with constitutional rights.