Report on Types of Capital and Laws on Power of Director

Company Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3............................................................................................................................................1
Different types of capital(AC_3.1).............................................................................................1
Laws on Share, class rights and dividends(AC 3.2)...................................................................1
Law for capital maintenance and insider dealing(AC 3.3).........................................................2
TASK 4............................................................................................................................................2
Duties and powers of Directors(AC 4.1).....................................................................................2
Rules on different types of meetings(AC 4.2)............................................................................2
Law on minority protection(4.3).................................................................................................3
Rights of shareholders and debenture holders(4.4).....................................................................3
Rights on Liquidation(4.5)..........................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The company law will be implemented by the company to see through the effective
running of the business in an organisation (Bainbridge, 2014). The report will cover the details of
various types of capitals, laws on various issues with the duties and power of directors and
various rights in a company.
TASK 3
Different types of capital(AC_3.1)
There are various types of capital that are been taken into consideration by a company.
Some capitals are:
 Natural Capital: It is a stock of processes or the resources that flows from one point to
other for the production of goods or services (Gerven and Berlingin, 2015).
 Human Capital: It consists of employees and customers health, knowledge, skill sets
and motivational factors that are needed for the production in the company.
 Social Capital: it includes the factors like family, community, business, trade unions etc.
that are been considered while development of the human capital in the company
(Koutsias, 2016).
 Manufactured Capital: it consists of material goods and fixed assets like tools,
machineries etc. that is been owned by the company.
 Financial capital: They play a very important role in the economy of the company. It
comprises the bonds, shares and bank statements.
Laws on Share, class rights and dividends(AC 3.2)
Various laws are been taken into consideration at a company. Some of them are:
Laws on Share: According to Companies Act,1956, a share is the part of profit or the stock that
is been owned by the company. The company is liable to provide the exact value of the shares
that are been owned by the shareholder in the company (Collison and et.al., 2014).
Laws on Class Right: It includes the practices to distributing the share of stock or profit to its
shareholders based on the profitability and the amount of share owned.
Laws on Dividends: Under this law, the company sets the different share of the classes. This
allows the company to pay the right dividend to the employees of their family members.
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