Business Law: Types of Business Organizations and Director's Responsibilities

Business law

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1. Different kinds of business organization and steps taken to form company.........................................3
2. Impact of contract and employment law on Green Courier Services...................................................4
3. Responsibility of director under company law....................................................................................5
4. Responsibility of company when it is raising capital, during shareholder and company meeting........6
5. How resolution of company is passed and for what matters it is required...........................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
The business law is one such set of legislations which regulate the working of the
businesses. There are many statutes being covered under its ambit which includes company law,
contract Act, employment law and many others. It is mainly design to govern the actions of the
business so that no such activity is done by it which may lead to legal consequences. Company
law is one such legislation which wholly and solely deals with companies and corporation right
from its incorporation to its dissolution. It provides the rights to all its members and punishes the
wrongdoer in any illegal conduct or activity (Florek, 2020). This report shall deal with a case
study which has specified set of questions.
MAIN BODY
1. Different kinds of business organization and steps taken to form company.
Business is an entity which is formed with a sole motive to generate profits. The
businesses are classified into different categories on the basis of its scope and size. Various types
of business organizations on the basis of size is discussed below-
 Sole proprietorship- There is only one person involved in establishing this business as
the name itself suggests sole which means one. The owner is only responsible for the
daily activities of this business and is the sole decision maker of it. The owner is
personally held liable for the liabilities of the firm. It is mainly suitable for small
businesses and requires a little formality for its formation, i.e. registration with HMRC.
 Partnership- This type of business organization requires two or more people who
mutually decide to start the business and they are known as the partners. The share the
capital contribution, profit, loss, responsibilities and decision making. There are mainly
two types of partnership, first is general where the partners can be held for the action of
other partners and are personally held for the debts of the firm. The second is limited
liability wherein the partners are only liable limited to the extent of their capital
contribution but may be held personally liable if they have specified in their partnership
agreement.