Company Law for business

Added on - 03 Dec 2019

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Company Lawfor business1
EXECUTIVE SUMMARYCompany law is developed to ensure uniformity in provisions of corporate entities. Itprovides standard regulation for the governance of operational activities of the organization.Present study was based on the evaluation of case facts of Toy Try Ltd with reference oflegislation of company law. According to the described case study, there is conflict of interest ofdirectors for the launch of new product. Three directors are in favour of launch while one is inagainst and one had not provided their decision. By considering this aspect, three directors(Chris, Dan and Elaine) are recommended to take vote of remaining director in their favour inorder to attain majority.2
TABLE OF CONTENTSCase study........................................................................................................................................4Case brief.....................................................................................................................................4Description of legal provisions....................................................................................................4Applicability in the given case scenario......................................................................................6Conclusion.......................................................................................................................................9Recommendation.............................................................................................................................9Bibliography Appendix..................................................................................................................103
CASE STUDYCase briefIn accordance with the provided case study, Toy Train Ltd is operating in manufacturingbusiness and they are having five shareholders i.e. Alfie, Ben, Chris, Dan and Elaine. Eachshareholder has shareholding of 20% in capital of the company. Alfie, Ben and Dan are alsodirectors of the company and Carol is solicitor. Directors of the company are planning to makealterations in provisions of Article of Association for the better operations. However, all are notable to make uniform decision due to variation in their point of view. It is because; Alfie isopposed to the development of new product suggested by Chris, Dan and Elaine. Further, Benhad not provided his view yet. In order to provide justified advice to Chris, Dan and Elaine,provisions of Companies Act 2006 will be applied by considering their proposals.Description of legal provisionsCompanies Act 2006Companies Act 2006 is an Act of Parliament of UK which is considered as a primarysource of the company law (Ng, 2015). This Act was introduced to supersede the Companies Act1985. Major provisions of this Act are enumerated below:This Act codifies several existing principles of common law because those provisionsare directly linked to the duties of directors.It provides implementation of provisions of European Union and Directives forTransparency obligations (Talbot, 2014).This Act had provided description of amended provisions of private and publiccompaniesBy this regime, there is applicability of single Act in the entire UK.In accordance with the legal regime of UK, company's article of association is the mainconstitution document as it provides regulations for the conduct of operational activities.Following areas are covered by company articles-Powers and responsibility of directorMeetings, appointment and resignation of directorDescription regarding shares and general meetings (Introduction to articles,2015).Voting rights, quorum and proxies4
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