Case Study Business Law

This report analyzes the legal framework for London Car Repair Company, covering company formation, articles and memorandum, stakeholder liability, share types, resolutions, director powers and duties, and legal recommendations for expansion. It provides a comprehensive understanding of business law principles.

Case Study Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Steps to Form Company...........................................................................................................1
2. Nature and Essential and Content of a Company Article and Company Memorandum.........2
3. Liability of Stakeholder in Expansion of Business..................................................................2
4. Nature of Share and Their Types.............................................................................................2
5. Company Resolutions and Passing Method.............................................................................3
6. Powers of director....................................................................................................................3
7. Duties Of director....................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business law or commercial law is legal body that governs the business and commerce.
This is considered as branch of civil law (Beatty, Samuelson and Abril, 2018). This report is
giving legal brief of London Car company. The legal steps to form the company are explained in
report. The nature and essential content of the company articles are reviewed in study. The brief
of involvement of stakeholder in the expansion of the company is given in report. The study is
defining different type of shares for London Car Repair. Different legal procedures of company
are covered in study.
MAIN BODY
1. Steps to Form Company
The required legal steps to form a company are as follows.
Select a Legally Permitted Name for company
To form a company it is important to select a name of company which is legal and as per
the law. In this process the possible name of the company is searched for the company.
According to law the name of the company should be good for cultural and social of people.
Otherwise, it can cause conflict.
Registered The company Name
Selected name of company is considered at the time of registering process. In this process
the company is registered as legal organization which can perform business in the country.
Incorporate Business as Legal liable company
In this step as per the company owner ship and corporate and legal structure the company
is considered as legal liable company.
Get Registered Tax Number
As a business the company is tax payer in the economy of country so it is important to get
a tax ID to make economical function of company legal.
Implement and Learn employment Laws
In a business organization the employee are the legally hired on contract (Allen, and
Kraakman, 2016). For hiring and recruiting process employment laws need to be followed in
Condon Car Repair.
Obtain Necessary Permits and Licences for Business
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To operate in different field of business London Car Repair company needs to take
Licences. Without these licences the company can't operate its business.
File For trade mark Protection
For a legal company the trade mark is symbol of organization in market. To make it
secure the company needs to protect with legal laws.
Open Bank Account of Company
To perform the economical transaction the company need to open a official bank account
which is associated with company.
2. Nature and Essential and Content of a Company Article and Company Memorandum
The article of the company are rules and regulation of organization which are supported
by legislation. This rules are essential to follow by employees of organization. The memorandum
of the association is the objective of the company. The company run on these business
objectives. These objectives are designed as per the structure and operation of organization.
The essential content of memorandum are company purpose and mission. All the rules
and regulations are need to be mention in the article of LCR.
3. Liability of Stakeholder in Expansion of Business
The stakeholder of the organization are legal partner of the company. The expansion of
company is depended on the ratio of share division (Aubert, 2016). If most of the share holder
are not interested for expansion of business in the risky area than LCR company can't perform
business expansion.
The share holder are liable for the debt of the company according to the percentage of
share they possess.
4. Nature of Share and Their Types
The shares are the movable property of London Car Repair. The share of the company
can be transferred to others. There are different types of share of the company which are Equity
and Preference shares. The Equity shares are vital source to rise long term capital. This shares
are known as ownership capital or owner's fund.
The preference shares are known as preferred stock. This share of the company are paid off
before common stock with Dividends are issued.
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The total number of owner in company are three and 66% of shares of the company are divided
in three members and rest of 44% shares are hold by public. This shows that the power is in hand
of company owner and they are authorised to take any decision related to expansion.
5. Company Resolutions and Passing Method
The company resolutions are legal binding decision which are made by authorized
company directors and shareholders (DiMatteo, 2016.). The resolution of the company are
passed by the voting method. To pass resolution in the board meeting the two third votes are
needed to pass any resolution in London Care Repair Company.
6. Powers of director
The different power of the company director are empowered to act on company's behalf by
company's article of association, companies ordinance, common laws, and resolution of
company.
7. Duties Of director
The different duties of director are act good to employees and use power for good for employees
and company, solve the conflicts with in the organization, Do not take advantage from personal
position.
Legal Recommendation
For the company expansion the company should follow the legal procedure. This can
help the company to legally expand in different locations. Company should follow suitable
framework for Arbitaration to resolve the conflict.
CONCLUSION
This report is concluding legal methods to form a company. The legal rules and
regulation has been learned in the report. The power and duties of the director of London Car
Repair company are evaluated in the study. The nature of share and their types are understood.
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REFERENCES
Books and Journals
Allen, W.T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Aubert, J.J., 2016. Law, Business Ventures and Trade. In The Oxford Handbook of Roman Law
and Society.
Beatty, J.F., Samuelson, S.S. and Abril, P.S., 2018. Business law and the legal environment.
Cengage Learning.
DiMatteo, L.A., 2016. International business law and the legal environment: a transactional
approach. Routledge.
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