Key Sources of Laws for Business Organizations in the UK

This report describes the legal context for business organizations in the UK and the key sources of laws that govern them. It covers the different types of business structures in the UK, including sole trader, partnership, and limited liability companies, and their respective merits and demerits. The report also provides recommendations for IOM Solutions, a case study for a business looking to advance and develop. This report is relevant for students taking the BMP4002 Business Law course as part of their BSc (Hons) Business Management degree.

BSc (Hons) Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of laws as
the legal context for business organizations
in the UK
Submitted by:
Name:
ID:
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Table of Contents
Introduction ...............................................................................................................................3
Businesses & Organizations in the UK........................................................................................4
The legal business structure of UK companies..........................................................................5
Sole Trader.................................................................................................................................5
Partnership.................................................................................................................................5
Limited Liability .........................................................................................................................6
Recommendations for IOM Solutions........................................................................................8
Conclusion..................................................................................................................................8
REFERENCES...............................................................................................................................9
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Introduction
The perspective around for the operational functioning of the taking and setting up of
a business is determined to be taken under the regulations of the Business law which is under
the boarder of the United Kingdom. The formations of the directives which tends to be
manage the business and other management of the organization. The course of action which
governs the groundwork for the business in mentioned under the provisions of the Company
Act,2006. There gravitates to include various kinds of business which are managed under the
directives, which also involved the relationship between the employer and the employee's, the
management of the industry, the laws which a company needs to follow and much more
criteria which are necessary for a organization. Regarding the relations of the hiring manager
and the workers which are managed under the provisions of the Employment Rights
Act,1996. The state of affairs which are controlled and provide great assistance to the
managers, the workers and other members of the company, is essential for the company. The
laid down regulations are crucial for an organization, as it helps and supports the base of the
organization, every regulations laid down has its own role in the formation of the company.
The report mentioned below will precisely cover the leanings regarding the vicarious
liability, which apparently states the duties and bonded laws for the director of the company,
in this case the vicarious types pf scenarios which are communicated in the facts of the
situations which is written down in the report, providing the suggestions to Sam on
evaluating and establishing its business (Gerner-Beuerle,and Schillig,2019). The major
explanations which gravitates on the facts of the advantages and disadvantages of the
formations of the company and how the functioning of the organization will take place.
Businesses & Organizations in the UK
Determining the nature of the any organization or precise business, which is
considered to mentioned its visions, aims and objectives which are beneficial for the
company. The states of affairs of the company will bring about the discussions whereas the
company has the potential to be incorporated or not. To maintain the aspect of management
of the organization, the organization tends to have different types of divisions to keep the
working intact manner. The division are divided into, Human Resources, division of
marketing, involving within the surface of production and manufacturing sector. All the
sections which are covered in the infrastructure of the company, which provide assistance to
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the company in various types of issues and affairs, be it the management of the relationship
between the workers and the hiring managers, competition between the companies and much
more. All these divisions of the organization are three to keep the organization its feet.
The regulations which are carried through as the support for the organization, is not
limited just to the Company Act, but the spectrum rounds about to much more of it, just as
The Employees rights act, The Health and safety act, Taxation Law, Laws regarding Anti-
trust and much more. It is noteworthy, to mention that the companies which are registered are
considered to be separate legal entity. All the legalities which are determined to be ruled as if
the organization can be sues and by whom it can sued. For a smooth and subtle plan for the
company, it legalities which are dealt with the regulations needs to be on the first priority for
the company (Chahed, 2021). The organization structure apparently have its own obligations
and its own liabilities. The terminology which covers the liabilities of the corporations, can
be called as Vicarious Liability, which states the meaning if the action of the employee has
in case caused any rupturing or injury to any individual, then the liability will goes to the
employer in that case.
In the formation of the organization, the position which is considered to be the top-
most is actionable by the director of the company. The director of the corporation is
belonging to have the highly duties and other responsibilities which behaves as an support
pillar for the company.
For the formations of the organization, it take to full-fill the conditions. The
establishment of the organization, needs to have two documents which must comes along
handy which states the information regarding the internal and external affairs of the
organization. The first document will the Memorandum of Association and the second
document would be the Article of Association.
The legal business structure of UK companies
The legalities which are part of the business is needs to be included within the
formation of the business and its tentative structure (Bullock,2018). To establishments
structure within the understanding of the company and its legalities, in this scope the
significance, merits and demerits and entire mandate learning regarding the business are
mentioned below :
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Sole Trader
This business structure is determined to be one of the easy path in the categories of the
business structure. The formative control of the organisation, is leading by just an individual
which is great for acquiring the benefits (Conyon,Gregg, and Machin, 2019). The sole trader
business structure is gravitated by the legalities, the registered of this business structure is
under the provisions of HMRC. This kind is determined to be wealthy and healthy for the
individuals to work and enhancing their business.
MERITS
 The sole authorities and figurations are dealt by the individual.
 The functions and other operational matters are taken by the just the individual
owners
 The establishment is less complicated then other business structure.
DEMERITS
 The liabilities tends to be burden just on the shoulders the individual
 The debts, risks and other unfortunate events will be shared by just an individual and
nobody else.
Partnership
The arrangement plan of this business structure is carried out by two or more people.
This type of organisation, tends to share the profits and downfalls of the company according
to the measures. The company which the nature of the partnership in it, is determined as the
incorporated entity (Erkabaeva, 2020). The partner will be equally liable for the causes,
damages, success and any other kind of state of affairs together and will take the load
together itself. Any type of misconduct, misapprehension or fraud will through to make the
both the partners of the company liable.
MERITS
 The functioning and role process of the company is easy, as the liabilities and any
course of actions are belonging to be divided between the partners.
 The parameters of the tax paying procedure is easy to be determined in this type of
company
 The profits will be shares equally.
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DEMERITS
 The features of debts and other measurements of decisions can not be taken by an
individual, instead the partners will choose accordingly.
 The process of trading, mergers, acquisitions and other responsibilities are to be
mandatorily consulted with the partner before indulging.
 Unlimited liability is to be considered on the partners of the company
Limited Liability
The factors and features including within the objectives of this kind of business
structures associated to change the focus of the risk which comes down to the caption value
of the company. The personal capabilities which are mentioned in the limited liability
company (LLC) are considered to be divided into Private Limited Company and Public
Limited Company. The evaluations of this company, is gravitating towards its nature which
states, If in the case of the failure of exposure of loss to the business structure or to the
dooming of the fiscal variables which will be process by the limited liability of the company.
The registration process of the company is considered to be done under the regulations of the
The Companies House. The assets which are regulated under this type of company are more
secured then any other (Sharma, 2020).
MERITS OF PRIVATE AND PUBLIC LIMITED COMPANY
 In the state of affairs of the assets which are safeguarded by the company of every
individual
 The organisation is in the plus side not to pay high edge tax
 To metastasize the company, the shares can be issues in the markets
 The operational functioning of the organisation, can be lead on by an individual
member
DEMERITS OF PRIVATE AND PUBLIC LIMITED COMPANY
 The commanding and other authoritative standards of the company is limited, so the
conflicts can be arise by the side of stakeholders.
 Civilian public does not count on the shares of the organisation
 Most certainly in need of an accountant for better processing of the investments and
funds
 The funds and other fiscal formations will be determined to be showcase to public as
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records given by the authorities
 The role of capital variables needs to be more stabilize in the formations and working
of the company
The spectrum of the possibility which match up between both public and private limited
company are evidently identical, the sources of the newly established company, will start
along as a private limited company before indulging into the public limited company. There
are some of the factors which are consequently differ in both type of the companies are
supposedly are mentioned below :
 In the subject matter of trade and shares which are in the scope of Public Limited
Company are put up in the zone of the stock market and can be purchased by any
individual.
 Within the compasses of the Public Limited Company, gravitates to include two
precise board of directors withholding a company secretary
 In the parameters of fund and investment, The Public Limited Company, the shared
valuation must be of 50,000 Euros.
Recommendations for IOM Solutions
After the classification of all the factors of the entire business structure which are
followed in the report. According, to the findings of the report, The business structure of Sole
trader is tends to be the uncomplicated and most convenient way of setting up and formation
of the business (Udemezue,2021). But the other evaluation stating that the business structural
method of sole trader is regarding better for the individual sources ad the ones who are
lacking the capital. As per the facts of the report which are mentioned for the sole trader Sam,
which is need grave need to advance and bring about development in his business
parameters. But for the better amount of suggestion, Sam is suggested to run through in the
measures of partnership which will provide assistance to Sam, in running his business scope
with the support of a partner. Tends to notice that the sharing of the capital profits will be
there in the company, which will somehow is down low for Sam. But in the circumstances of
the long run, the liabilities, obligations and any other matters of the organisation will be dealt
by the partner and every other responsibilities will be divided eventually. The stress will be
divided between the partners of the company, which is ultimate reach for he development of
the firm and for Sam, to shrug loose his shoulders.
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Conclusion
It is prescribed from the above report, there are majorly three types of business
accordance structure. The best among the rest which is proven to be chosen for Sam, is the
functional of general partnership which will be eventually feasible for the working of the
business and the entire setting of the company. The operational functional of the business
framework which is involved which tags along with its own merits and demerits. Lastly, the
report which is briefed regarding the business types will provide assistance for advancing the
securing the triumph for the organisational matters. The advantages for the business structure
will ultimately help Sam, to achieve the goals and d other objectives of the business.
REFERENCES
Erkabaeva, S.I., 2020. THE LEGAL NATURE OF A PARTNERSHIP: COMPARATIVE-
LEGAL ANALYSIS OF THE LEGISLATIONS OF THE UNITED KINGDOM,
THE USA AND THE REPUBLIC OF UZBEKISTAN. In ПРОБЛЕМЫ
ЭФФЕКТИВНОГО ИСПОЛЬЗОВАНИЯ НАУЧНОГО ПОТЕНЦИАЛА
ОБЩЕСТВА (pp. 72-76).
Sharma, J.K., 2020. Limited Liability Partnership as a Better Alternative to
Incorporation. Jus Corpus LJ, 1, p.440.
Bullock, K., 2018. Policing and preventing crime in partnership in the United Kingdom.
In Realist Evaluation for Crime Science (pp. 189-201). Routledge.
Gerner-Beuerle, C. and Schillig, M.A., 2019. Comparative company law. Oxford University
Press.
Udemezue, S., 2021. Role of Company Employees in Promoting Corporate Governance: A
Comparative Analysis of the Approaches in Nigeria and the United
Kingdom. Available at SSRN 3907553.
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Chahed, Y., 2021. Words and numbers: Financialization and accounting standard setting in
the United Kingdom. Contemporary Accounting Research, 38(1), pp.302-337.
Conyon, M., Gregg, P. and Machin, S., 2019. TAKING CARE OF BUSINESS:
EXECUTIVE COMPENSATION IN THE UNITED KINGDOM. In Corporate
Governance (pp. 329-340). Gower.
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