Types of Business and Laws in Business Law

Business law

Contents
Introduction......................................................................................................................................3
1. Types of business.....................................................................................................................3
2. Different kinds of laws.............................................................................................................4
3. Responsibilities of directors and auditors of the company......................................................6
4. Responsibility of the company when raising capital during company meetings and
shareholders meetings..................................................................................................................7
5. How a company can pass their resolution and the matters resolution are required.................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
Business is an organisation where the entrepreneur has to manufacture or sell their
products and services into the competitive market so that they can profit from it (Cassel, 2018).
This assignment is based on the case study of Mr Gordon the system director for green courier
services. With respect to the case study the report is discussed about the different types of
business organisation and the several steps which can be taken to form a company. Several laws
are also discussed. The duties of the directors audit under the company and the responsibility of
the company when raising capital during meeting and shareholders meetings. Lastly, the
assignment is discussed about how the company can pass their resolution.
Main body
1. Types of business
 Sole trader: it is the most simplest form of business. It is a kind of self employed sole
trader where the owner is only working in order to run his business. All the rights and
liabilities are owned by the owner. This type of business is not deemed to be a legal entity
as they don't have their own right (Contractor and et. al., 2020). The owner of the
business has unlimited liability for all the debts and legal actions. It is very simple to
operate.
 Partnership: when two or more people come together in order to agree to share the profits
and losses of a business. They share the risk, cost, benefits and other responsibilities.
They are responsible for upto the one extent. Every partner is responsible or liable for the
negligence and misconduct of the other partners. The profit on losses will be shared
between the partners only as they are under a partnership agreement.
 Company: private limited company is a legal entity which has at least one director and
must attain the age of 16 years. A private limited company is a legal entity with its own
rights and is separated from those who owned it before the eye of law. The benefit of
operating a limited company as the liability of the shareholder is limited to their
investment only and any of the unpaid shares they own (Cooley and Hansen, 2021). This
kind of company has played an important role in order to save the personal Assets of the

shareholders. The company must comply with the rules and regulations formed by the
authority. It must be registered as the office of the UK.
o A public limited company is also parallel with the private limited company and
has legal entities in their own rights. This kind of organisation is traded in the
public market and this is often used in order to raise finance from the general
public. It is also required to appoint at least two directors.
Form Company
There are several steps which can be taken to form a limited company that is discussed
below:
 Firstly, it is necessary for the individual to determine that it is right for them to form a
company.
 Secondly, they have to choose the name of the company by which they are going to
register it.
 Then, the company has to determine the directors and the company secretary.
 Further, it is necessary for them to decide the shareholders are the guarantee who will be
made.
 It is necessary for the organisation to identify the people which play an important role in
order to control the affairs of the company (Fernandes, 2017).
 When the company can prepare proper documents agreeing upon how they are going to
run their business in the competitive market and what are the basic strategies adopted by
them in order to attain the common goals of the organisation.
 The last step is to get registered. In this state the company gets registered which brings
the company into and legal existence.
2. Different kinds of laws.
a) Employment law
 The Employment Rights Act, 1996: it is the act which was founded in the year of 1996
and passed by the conservative government to codify the existing laws on individual
rights in UK Labour Law. It talks about employment particulars which are also called as
written statements of particulars. The disclosure and determinants are also discussed in
the Act because of disclosing information for public policy (Härkönen, 2018). This is
used in order to protect the employees to report the criminal offences failures to avoid by