Roles and Provisions in Business Law

This article discusses the roles and provisions in business law, including legislative roles, legal provisions, and case scenarios. It covers topics such as company law, employment law, and alternative dispute resolution. The article provides insights into the rights and duties of directors, employment contracts, and methods for resolving disputes outside of court.

for Business
Managers

Table of Contents
INTRODUCTION ...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Case Scenario ..............................................................................................................................3
Legislative Roles and Provisions.................................................................................................3
Case Scenario 2............................................................................................................................5
Legal Provisions .........................................................................................................................6
Case Scenario 3............................................................................................................................7
Legal rules and Provisions ..........................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES...............................................................................................................................11

INTRODUCTION
Business law is the implementation of rules for the organisation and company which
provides all the trading and business being done by the merchandise as the companies when enter
in a business they will have to follow all the rules and regulations.(Baines, and Cunningham,
2020). With the command of that same fact and Company law provides all the rights and duties
of the organisation in which they provide the details structure from about the working of the
corporations it helps the people to work in an inspective manner through which they seems to
give the conducts and the relations being made in the business as company law comprised of all
the laws like employment law, alternative dispute resolution, IPR, Data protection etc.
Employment law provides the relationship of the employers and there employees all the duties
and the working conditions of the employee use to be set by the rules govern in employment law.
Alternative dispute Resolution helps the companies organisation and the people to solve their
dispute outside the court without reaching the courtroom as this makes it easy for the people to
avoid long delay for their settlement it has various methods through which a person can make it
easily adjustable. This report will include roles of directors under company law, employment
contract and different kinds of dispute resolutions.
MAIN BODY
PART 1
Case Scenario
Gemme is a sole proprietor of a new company called Clean Machine Limited, which
supplies the equipments for small business in Bedfordshire but she does not know the legal roles
and duties of a director of a company. So she wants to know the roles of a sole director in the
company.
Legislative Roles and Provisions
Companies is a legal personality which have their separate legal entity and have their
perpetual succession.(Ding, 2020).It covers all the general rules and norms for the entity and
companies do last for the longest time and they always raise a maximum attain capital and
provide profit to the person.

There are mainly two kinds of companies mainly public company and the private
company in which public company covers all the inventors to invest in it and raise as much
capital as needed(Ellison, 2018). Private company have all the funds raised by the equity and
also from the debt in various areas it does not include any partners in work. Companies also have
certain liabilities categorised in working like it haver limited liability which have a proper area or
extent till which the directors may record their capital and it involves unlimited liability where
directors have no obligation to make any extent in working or raising capitals.
Company law of 2006 gives two types of record that may involve corporate finance and
corporate governance in which it provides methods through which a company can raise fund and
make it easy that fund can be raised by the equity and also from the debts and corporate
governance requires rights and duties of the employers, directors and employees with their roles
and the legal duties towards the company(Gogokhia, and Berulava, 2020). It also provide certain
rules in which it is mentioned about the companies opening, to raising funds and also all the
winding up in all record.
As the sole director has few advantages in their working as they may take their own
decision and can at any time if not satisfied can amend it, they may also make and issue any
rights and obligations if required but with the advantages it comes but with some disadvantages
as all the liabilities and debts will lie on the director itself and they6 will have to manage the
working of the company with immense pressure. As Gemme is a sole director and she has her
own company there are some roles and jobs which are being made for her as in Company law
2006 they covers some rights and duties of a sole director in section (171-177) which are
mentioned below:
 A sole director will have to take the decision with a reasonable care and with proper skill
and knowledge about the company and the director should use their experience on certain
record and also their adverse knowledge in all the field before taking any decision for the
company.
 It is the duty of director that they should try to avoid conflicts in their company and
should maintain a friendly environment with all(Hazarika, 2021). The director should not
involve themselves or any other member of the company to get engage in a situation
which can create conflict between the parties. It is the prior duty of the director to
maintain good relation with all the staff and the companies which tries to invest in them.

 Sole Director has the duty to make an independent judgement and should make it in a
way that it helps in the future goals and performance of the company.
 Sole director has the duty to keep its records open and clear and should maintain proper
records open for the public as in case of inspection.
 All the original records, evidences and paper work with all the legal obligation is to be
maintained by the director they have to make all the records available for the people even
if they had made certain changes in it.
 Sole Director can also hire any person or the advisory committee for their company ion
order to make a safe judgement for the well being of the company but they just have to
take advise but the last decision lies on the director itself that whether they want to amend
that decision or not(Jiang and et. al., 2019).
 The person acting as a sole director is not being allowed to take any benefit from the third
party that means they will always have to prohibit all the adhere kind of profit raised or if
any company tries to make or give profit in a wrong means.
 Sole director is the person who handles their company single handedly and do tries to
achieve and gain more profit for the company and raising fund but with that it is the duty
of the sole director have to do their work in good faith with all means and has to promote
the success of the company through various means.
 It is important that the work environment will always be easy and motivating for all the
workers working under the company and it is the duty of sole director that they should
manage their employees and make motivated through various means so as they can get
maximum profit by them and make them happy and relaxed.
These are some important duties of a sole director which is needed to be fulfilled by Gemma so
as to run a smooth and perfect company without any problems.
PART 2
Case Scenario 2
Gemme just employed Charanjit for cleaning purpose in her company named Clean
Machine Limited but charanjit was not doing his work properly he use to get late daily and was
not trying to do his duty and the cleaning properly (Lyaruu, 2020).Gemme has to daily remind
him about the work and all the allocated areas which are needed to be cleaned she was so irritated
by his attitude and behaviour that she wants to terminate his employees contract.

Issue Raised-
Can Gemme terminate the employment contract of charanjit?
Legal Provisions
The employment law is an important aspect in any company as it contains all the rights
and duties of the employers and the conditions which are needed to be kept in mind while hiring
or removing any employee. As the legislation has certain kinds of laws which are being covered
under this this involves Employment Relation Act, National minimum wages Act, Health and
Safety in work Act etc. (Nica and et. al., 2018).All these acts provides the laws an the rules which
are important to be kept in mind while employing any person.
The employers while joining any company has to follow all the rules and regulation of the
company and the directors and the managers should make it clear to the employees about the
basic working of the company and its targets and when a employee join the company then they
will have to make an agreement and a written or oral contract with the person. The notice period,
there work tenure, leaves, salary everything should be properly mentioned in that contract.
In UK the companies follow two types of methods which contains rights for the dismissal
of a person that is Common law rights in which no person can be dismissed in case where there is
breach of contract and this is also termed as wrongful dismissal and the other one is Statutory
right where the person will not be unfairly dismissed from a work(O'Connell, 2017). This
implies that the employers can be dismissed on account of any breach of contract but that will not
be counted as a fair thing it will still be counted as unfair dismissal.
There are certain ways on which a employer may revoke the contract and dismiss their
employment relation with that person that is mentioned below:
 If the employee terminate their contract which was setted at the time of employment and
that can also be called as Constructive dismissal and in this case it is not important to give
notice to a person due to the conduct of an employer.
 On the expiration of the term of a contract.
According to Employment rights Act 1996, there are two ways through which the dismissal can
be recorded as an evident and will be treated as fair:
1. It is on the employer to show evidence that employee is not doing its duty properly as
according to the contract and they have been fair and potentially clear not doing any
wrong with them.

2. The court or the tribunal will decide that whether the employers has acted in a fair means
and has is giving a proper reason for the dismissal of the employee( Oesch and et. al.,
2020).
In this case Gemme can dismiss Charanjit on account of not fulfilling the contractual terms and
she will be kept in record with this employment act.
As it is the duty of the employer to inform the employee about the dismissal and should
provide that person a legal notice of for a minimum period. And under employment rights act the
minimum period will be counted as about one week for the person who has been working under
the employers from about 1 month to 2 years and that person will get a proper time so that they
may try and find the new job.
Other than this there are some specific conditions where employers are allowed to remove
the employee from a job without any notice those conditions are:
 Employee has done any misconduct in working hours.
 Employee is not being able to do their job properly due to lack of knowledge or any other
reason.
 Employee even when is capable to do the job still is not doing the work properly and is
unwilling to do that work.
In this case scenario Gemma may remove charanjit from the work as he is not willing to
do his job properly and even after making him noticeable about the work he is still not doing his
work properly and Gemma is continuously trying to overlook the work done by him and has to
remind him about his duty which completely shows his lack of interest and unwillingness to do
the work.
PART 3
Case Scenario 3
Gemme has entered in a contract with Precious time limited for getting the suppliers for
its Clean machine limited, But while working there are some issues between the companies and
Gemme got advise from her fellow friend that she should take the precious time limited company
to court but she is still not sure about breaking a friendly relation with them.
Legal rules and Provisions
As for this case there are so many measures which can be taken by the company and the
Gemme to sort the matter as going to the court is time and money consuming process so there are

certain measures which are available in order to resolve the dispute outside the court. And the
most important way to settle matters outside court is Alternative Dispute Resolution(ADR) in
this method the parties usually takes the help of the third party to solve the dispute when there is
disagreement between the two parties(Seiner, 2019). In this recent time this tool is being used by
most of the people as no person wants to get in delay for certain dispute and court proceedings
as take much longer time then expected with heavy expenses and it makes the parties disturb in
their normal routine.
In Civil Procedure Rules, 1986 there has been made an explanation of alternative dispute
resolution it mainly covers various process that are Mediation, arbitration, conciliation,
negotiation and many more. This is a consensual process as all the parties involve in it will have
to voluntary agree for resolving dispute through ADR and court will not force any of them to do
that work.
ADR is also have a binding feature as the decision once made will be binding on the
parties and it comes up with various advantages they are mentioned below:
 It is a cheap process as it does not require any litigation cost and funding and it covers
less time then the actual proceedings.
 It is a confidential process as they also deal with sensitive matters and does all the
discussions between the parties.
 It makes the parties to choose the forum and the way through which their matters should
be discussed that means the kind of forum they want can be implemented in as under.
 There is no need of any personal lawyer in this process as their will be appointed a mutual
person for both the members for solving the dispute.
In this case Gemme will get following methods from which she can choose the way in which the
issue can be raised and solved they are as follows: Negotiation- It is a kind of alternative dispute resolution as this is the cheapest method in
which the person appointed will try to make both the parties in a win win situation in
which the main agenda is to make both the person in a gain situation that implies a their
implies a oral negotiation between the parties about setting the thing in proper conditions
they make both the parties sign the written agreement after which it will be binding on
both the parties.

 Arbitration- This is the most effective process of arbitration in which the court will
appoint a arbitrator for both the parties and they will give the fees collectively to that
arbitrator. That Arbitrator will record all the evidence by reviewing and analysing the
facts and later on give the decision.(van Langelaar, 2017). The decision being given by
the arbitrator will have a binding impact on both the parties and the arbitrator will
scrutinise all the statements and facts. The judgement or the final solution provided by the
parties will have a hook image and if the parties are not obeying the decision raised by
the arbitrator then the court will order the award which is enforceable by them. Mediation- It is the most common type of ADR where the parties will get a mediator in
between them and that mediator will hear both the parties and the dispute arise in between
them and after that will try to give their own views about the facts and the nature of the
parties in this the parties if then wants will come to the mediator with all the details and
documents the decision of the parties will not be binding on the parties as it is complete;y
the choice of the parties that they want to take the choice of the mediator or want to settle
by some other means.
 Conciliation- This is quiet a same process as that of mediation but the only difference lies
in this is the conciliator is appointed by the person who has no link with the court and
who will be unbiased about the case of the party that person will hear both the parties and
will give then give an adequate solution in their behalf and if that trying is applied and is
sorted for the parties then they can make that statement and decision in written form and
binding on all the parties. The most important element about this process is that the
person will not be familiar with then parties and he will hear the things as an outsider
which makes him easy to think about and view the perception of any person in an
unbiased way.
In this case Gemme can move to the arbitrator for resolving the dispute and making everything
easy as by appointing any arbitrator for them will amount to get a person who will have resolve
the dispute of her with Precious time limited company as it is less time consuming and both the
parties will not come in a state of dispute their they may also take any other situation and even
can choose any amicable way through which all the parties will be in a win win situation.

CONCLUSION
It is concluded from the report that business law provides the set of rules for all then
organisation and companies as in order to provide them legal rights and duties in which they may
work. In this case scenario their has been discussed about the conditions where in first area it is
explained about then duties of a sole director of a company as Gemme was a sole director in the
second scenario their has been explained about the rights and ways through which a employee
can be terminated and in third scenario it is explained about the methods of arbitration through
which she can solve dispute.

REFERENCES
Books and Journals
Baines, D. and Cunningham, I., 2020. Understanding Austerity: Its Reach and Presence in the
Changing Context of Work and Employment. Working in the Context of Austerity:
Challenges and Struggles, p.3.
Ding, J., 2020. New Initiatives of the Hong Kong Department of Justice: The Inclusive Dispute
Avoidance and Resolution (IDAR) Office. Asian Dispute Review, 22(1).
Ellison, S.H., 2018. Domesticating democracy: the politics of conflict resolution in Bolivia. Duke
University Press.
Gogokhia, T. and Berulava, G., 2020. Business environment reforms, innovation and firm
productivity in transition economies. Eurasian Business Review, pp.1-25.
Hazarika, A., 2021. Investment Dispute Settlement and the Position of State-to-State Arbitration
in Investment Law. In State-to-state Arbitration based on International Investment
Agreements (pp. 1-23). Springer, Cham.
Jiang and et. al., 2019. Knowledge flows from business method software patents: influence of
firms’ global social networks. The Journal of Technology Transfer, 44(4), pp.1070-
1096.
Lyaruu, M.G., 2020. The Imprecision of Tanzanian Labour Law Against Women Sexual
Harassment and Discrimination in The Employment Sectors (Doctoral dissertation,
Mzumbe University).
Nica and et. al., 2018. A laborless society? how highly automated environments and
breakthroughs in artificial intelligence bring about innovative kinds of skills and
employment disruptions, altering the nature of business process and affecting the path of
economic growth. Journal of Self-Governance & Management Economics, 6(4).
O'Connell, M. ed., 2017. International dispute settlement. Routledge.
Oesch and et. al., 2020. The Jurisprudence of WTO Dispute Resolution (2019). Swiss. Rev. Int'l
& Eur. L., 30, p.265.
Seiner, J.A., 2019. Employment discrimination: Procedure, principles, and practice. Wolters
Kluwer Law & Business.
van Langelaar, A., 2017. Dispute boards–pertinent aspects of operation part 1: DB decisions:
disputes boards. Civil Engineering= Siviele Ingenieurswese, 2017(v25i10), pp.22-27.