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Explaining the Concept of Corporate Personality

   

Added on  2020-06-03

11 Pages3088 Words58 Views
COMPANY LAW

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Explaining the concept of corporate personality as well as lifting the veil......................12.3 Justifying the areas of expansion for small business enterprise.......................................11.2 Analysis over incorporation expansion and their merits and demerits.............................21.3 Describing the law on Promoters and pre-incorporation agreements..............................21.4 Requirement of registration before commencing trading.................................................31.2 Analysing the two comparative measures of organisation...............................................3TASK 2............................................................................................................................................3TASK 3............................................................................................................................................33.1 Various capitals for new incorporated Ltd firm...............................................................33.2 Assessing law on issue of shares, class rights as well as dividends.................................43.3 Discussing laws which applicable for maintaining capital and insider dealing...............4TASK 4............................................................................................................................................54.1...........................................................................................................................................54.2 Explaining rules on various types of meetings.................................................................54.3 Discussing law on minority protection.............................................................................64.4 Evaluating rights of shareholder as well as debenture holder..........................................64.5 Discussing rights on liquidation.......................................................................................6CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8

INTRODUCTIONGrowth in the small business enterprise as well as lifting such corporation at a high levelwill need legal influences which helps the firm in gaining the adequate framework. Hence, in thepresent assessment there will be discussion based on company law and the various rights,regulation, legislations and examples of cases held in UK’s corporate environment. Thus, thereport will also shed some lights on the role and responsibilities of directors and executiveofficers in the expansion of a company. Hence, In this report there will be discussion based overthe various legislations and acts that will help the small business enterprise in expanding thebusiness.TASK 11.1 Explaining the concept of corporate personality as well as lifting the veilBy considering the jurisdictional point of view, An organisation is a separate legal entitydistinct from its owners it has its own identity as well as it must be denoted as an individualperson or a personality. Hence, it can be said that its self-denoted as a person which areconcerned with the Veil of incorporation. Thus, such Veil describes that the firm has its ownlegal framework as well as its own principles. There has been various legislation or relevant tosuch factors as Company act, 1956 it says that if a person committed any illegal or unlawful actmust be punished and penalised (Lifting of The Corporate Veil, 2017). Hence, the case ofSalomon v A Salomon & Co. Ltd is the example of lifting the Corporate Veil.2.3 Justifying the areas of expansion for small business enterpriseIn accordance with improving the firm's operational ability there is need to make changesin such activities. Hence, it can be done by analysing the actual strength and weakness of thefirm as well as its competitors. Thus, in context with expanding the operational activities of SBEthere is required to adopt various techniques such as benchmarking, Monitoring the quality ofwork, Employee engagement as well as must consider the external environment such as invitingshareholders or investors to raise the capital funds. Thus, there is need to expand the business bypromoting the online marketing, exporting the products in different locations or out of thenational territory.1

1.2 Analysis over incorporation expansion and their merits and demeritsBy considering the expansion of the small business enterprise there will be variousadvantages and disadvantage of the business. Hence, such areas of weaknesses need to berecovered by taking necessary steps and decision making which will help the firm in havingeffective growth.Advantages of expanding SBE:In consideration with the small size of the business there will be need of less capital andinvestment as well as less involvement of people.In making the operational framework they have their own rights and methods to makeinnovations and make changes in their activities.Firm will be able to have the strong commitment and stability in external environment aswell as they are self-governed and operated and managed (Sealy and Worthington, 2013).Disadvantages of Expanding SBE:They are not able to make extra ordinary thinking on the basis of global level. Thus, theyhave narrow operational setup and will think in accordance with that.They will have fewer contracts and fewer connections with big MNCs and othercorporations.There will be obstacles in gathering the adequate amount of funds. Thus, this in turnaffects the low growth and development of the firm.1.3 Describing the law on Promoters and pre-incorporation agreementsIn Order to bring expansion for firm there will be requirement of various company lawsand regulations which in turn will be fruitful in facilitating legal framework for the operationalactivities. Hence, there has been use of such acts and laws which in turn affects duties, roles andresponsibilities of Promoters and pre-incorporation contrasts such as:Promoters: In accordance with the company Act 1956 where in sections 62,478,519 andin 69 describes the guidelines and framework of the promoters. Hence, the promoter can bedefined as the person who has the direct or indirect influence in the company whether he will bemanager, director or the investors of the firm (Pre-incorporation contracts and the promoter,2017). Thus, it can be said that such person is promoting the organisation.2

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