Business Law: Understanding UK Business Structures and Compliance

Business Law

INTRODUCTION
The business is defined as an corporation which set off the activities in manner to earn
more profits. The laws which applies on the businesses were known as the business law. The law
of contract, company law, employment law, etc. are covered under the business law. The role of
corporate social responsibility according to these laws were seen in present scenario of the
business. On the basis of production on large scale, medium scale or small scale businesses all of
this is to be classified(Beatty, Samuelson and Abril 2021). There are many laws which protects
environment known as the environmental laws. There is many type of businesses in this country
namely partnership, the company, sole proprietor, limited liability partnership, etc. which is been
easily run by the businessman in the country. The various type of business were discussed in this
report. This also includes merits and demerits, and features to run this type of business. The
report also discuss the type of business which the IOM Solution company must take in the order
to develop the best in these present competitive market in the country.
MAIN BODY
Businesses & Organisations in the UK
The Companies Act, 2006 of United Kingdom regulates the businesses of the country.
The Insolvency Act 1986 governs the insolvency of individual. The Employment Right Act,
1996 and The Equality Act, 2010 were introduced for protection and to provide right to the
employees. These acts were introduced for betterment of the employees. These acts are
implemented to promote the welfare of the employees. Mainly the reason behind making these
laws is the exploitation of the employee by the employer for which they works. These law
explains the incorporation of the company. The law also prescribe the procedure for the
dissolution of the company. Under the law the procedure prescribed for transaction between the
company at national level. The rights and duties of the stakeholders of the company is also
explained in this. In UK the business is classified under four different categories as per the law of
the country. The business in this involves limited company, sole proprietorship, partnership and
restricted liability associations(Bulturbayevich and Jurayevic, 2020).
The concept of Vicarious Liability on behalf of company lies in this. The vicarious liability arises
when the employer does an act which is of such instance that it can cause harm to the employee.

This is the case of relationship of master and servant. The concept comes into effect because of
delegation of authority. The authority is been delegated to release the burden of work from
master. The master is bound for the act done by its servant after delegation of work. The master
is liable for the act of its servant in the case of vicarious liability.
There are three elements which satisfies the order to establish vicarious liability. The elements
are-
 They must hold employer and employee relation between them.
 The employee have done some tort.
 The act of tort done by him have to in the course of action when employed(Chursin,
et.al., 2018).
To commit vicarious liability these elements must have to be present there. Concept of
negligence is described as if anyone did not perform the duty it is bound able to be done in the
course of business of employer. There will be loss of employees and customers of the company
if there is negligence in the company. For the act of negligence the business will be held liable to
pay the aggrieved party for the loss caused to him from any act done negligently. The employer
have to pay the compensation in monetary terms to pay for the negligence. The four basic
elements which have to be fulfilled in order to establish the negligence in a case. The four
elements have the duty to do some activity by the employer, breach of a specific duty through
employer, the result is made because of breach of duty and after all this made harm to the
aggrieved party.
The chairperson and the main head of the company are the director. The long term goals
of business are being managed and controlled by the director of the company. The legality of
business process is regulated by the director. The director will held liable for giving
authentication for the process(Davidson and Forsythe, 2020). The conflict between employees of
the company should be resolved by the director. More than one director should be there in many
instances. The number of director is also known as the Board of Directors. The decision
regarding business is been taken by the directors only. Under The Companies Act, 2006, many
power is granted to the directors. There are some different type of directors which are managing
directors, sleeping director, etc. the development plan made by the directors will succeed the
business. When the plan is effective, then only the result will be beneficial for the company. This
is the main responsibility of the director to take better decision for the company. So, in this