Law for Business Managers: Role of Sole Director, Termination of Employment Contracts, Dispute Resolution

LAW FOR BUSINESS MANAGERS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART 1............................................................................................................................................1
Role of sole director of company.................................................................................................1
PART 2............................................................................................................................................3
Explanation of provision made regarding termination of employment contract........................3
PART 3............................................................................................................................................5
Brief explanation of provision related with dispute resolution outside court..............................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law is field of study which define all the essential provision which is related
with incorporation, succession, and winding up of business. It is branch of study which help in
provides knowledge regarding all the provision related with social security compensation,
contracts and relationship between director with companies or other people. In order to
understand this concept this report has been formulated. This report define role and
responsibilities of director when they run one person company, provision and procedure related
with termination of contract of employee. It also consists way director use for solve their dispute
outside the court. All these information has been define in systematic manner.
MAIN BODY
PART 1
Role of sole director of company.
Director: According to the section 154 of Companies Act 2006, director is a person
appointed for the purpose of run and direct companies operation in effective manner by
performing his duties and responsibility.
As per provision of companies act it is essential for every company which is registered
under this act , to appoint at least one director which manage all the law and affairs of companies
as in the book of law company is artificial person and it is not possible that it act according to
themselves thus companies needs to appoint director which took responsibility to take all the
decision and supervise each operation of company.
There is no specific definition is defined in the act however director is person who
appoint for look and manage al the essential external and internal affairs of company on the
behalf of companies owner (Basuil and Datta, 2017).
Sole director: This term define as director appoint for company when there will be only
1 director or person serve at given specific time period.
In this case study Gemma established Clean Machine Limited it is newly set up company
in which Gemma is the only director as she is the owner of the company. According to the
section 154 of Companies Act 2006 following are the role and duties which Gemma needs to
fulfill to act as director:
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Director as agent: Person being appointed as director act as an agent of company as its I
artificial person and not act behalf of their own manner. Thus director are appo8inted as agent
and they need to work in good faith and fulfil all the responsibility and role which an agent play
for their role for their principle. However they are not personally liable for any kind of loss or
misshapenness event.
Director as employee: Being as employee it is responsibility of director that they need to
work accordion in good faith and to achieve target of their company.
Director as officer: Being as officer director have some specific power to inspect
account and financials statement of companies, supervise the whole structure and working
process of company. They have right to terminate any of working employee and took decision
on the behalf of company. Being as officer it is their responsibility to direct, influence and
motivate their employer as well as communicate their stockholder regarding company in good
fever.
Director as trustee: They play role of trustee for companies property & money.
Fiduciary relation has been established between director and company ans being as trustee of the
company it is the responsibility of them to safe or protect assets and resource of organization
(Bowler, Indridason, Bräuninger and Debus,2016).
Organize committee meeting: It is essential role of director that they ned to organize committee
an meeting for the purpose of take future business decision. They need to organize first meeting
within 30 days of incorporation of company. Director is responsible foe organize 2 meeting
within 120 days and in case of one person company or small companies director need to organize
1 meeting in half or calender year.
Act as per requirements of articles : It is responsibility and duty of directors that they
need to work according to the rule , regulation and norms which defined in articles in ethical
manner.
Act in good faith: In order to run company in systematic manner and maintain dignity
within the internal environment, it is the responsibility and role of director that they need to work
and fulfil their responsibility in good faith. They need to take decision in good faith without
discrimination or on the basis of favouritism.
Work for best interest of company: This is consider as one of the important role of
director as they need to play their role in such manner which help in success and help in leading
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