Law for Business Managers

Law for Business
Managers

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Case Scenario.........................................................................................................................3
Legislative Provisions............................................................................................................3
PART 2............................................................................................................................................5
Case Scenario.........................................................................................................................5
Employment contract..............................................................................................................5
Process of Dismissal of Employment Contract .....................................................................6
Whether can Gemma terminate employment contract with Charanjit?.................................7
PART 3............................................................................................................................................7
Case Scenario.........................................................................................................................7
Legal rules and provisions......................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law is a branch of law that covers all the laws that are needed to govern
business and its activities. Business plays vital role for the upliftment of the society and its
economy. It is the need of the society that the laws shall be followed in business to better
functioning and management. The law provides rights and duties of an employee and employer.
The law also provides with various other ways that businesses are suppose to follow. There are
many laws that comes under business law. They are: law of contract, employment contract,
negotiable instrument, insurance law, alternative dispute resolution, etc. All these laws together
helps a business to function smoothly. This report consist of three different case scenarios. The
first case scenario is about the roles and duties of a director and it also explains the laws that
helps in the regulation of the role of director. The second case scenario explains the contracts
between employer and employee. It states the meaning of employment contract and the process
to terminate the employment contract. The third case scenario explains various important ways in
which the parties to contract may resolve dispute outside the court. This process is termed as
'Alternative dispute Resolution' as it is the alternative method used by the parties to resolve
matter outside the court.
PART 1
Case Scenario
Gemma is the owner of the company named 'The Clean Machine Limited'. She is the sole
and the only director of the company. The work of the company is to supply protective
equipments within the country of Bedfordshire. These equipments are supplied to mostly all the
small businesses in Bedfordshire. Gemma is new to the business and she is unaware of her role
as the director of the company. She wishes to know all the roles, duties and other various laws
which are important for a director to know.
Legislative Provisions
A company is a legal entity which is involved in running of a business and its activities
and is formed by an individual or a group of individual in order to earn a common goal or profit.
The main object behind setting up a company is to earn profit an dachive the desired goal for
which the company is formed (Boisgibault, 2020). The Companies act, 2006 is the law that
governs all the companies in United Kingdom (UK). There are mainly 2 types of company:

public and private company. Public company is the one which have its capital raise by issuing
shares to the public while in a private company there is no involvement of public in raising the
capital. The other way in which a company can be classified in on the basis of liabilities. A
company can be limited or unlimited company based on the liabilities of the directors (Al-Dah,
2019). Liabilities of the directors are determined on the basis of the amount invested by them in
raising of the capital of the company.
Gemma is the sole director of the clean machine limited and she is expected as a director
to know her role and duties towards the company. Director is a high post in a company and lots
of duties and responsibilities comes with it. Therefore, it is very important for Gemma to
understand them so that she can function and manage the business activities efficiently. In the
Companies Act, 2006 there are mainly 7 general duties which are specified under section 171-
177 which directors have to follow. All the duties, roles and powers of the directors are
mentioned in the Article of Association (AOA) of the company.
The 7 duties mentioned under the Companies Act, 2006 of the directors in UK are as
follows:
 The powers of the directors are mentioned under the AOA of the company. The powers
of the directors vary from business to business. Every business have different agendas
and activities in which they are involved. There comes many powers along with the
position of a director (Roudbari, 2017). The director must act in accordance to the powers
given to him under the AOA and by the act. He should not over misuse his powers while
at position.
 The director of the company is suppose to act in good faith and for the benefit of the
company. The decisions made for the company by the director must be for the profit of
the company and not for his self profit. He must do all the acts that relates to the business
without any selfish motive and for the growth of the company.
 The decision of the director must be with an idea that the company is benefited and the
decision would give an opportunity to the company to grow. The judgement of the
director must not be made for any gain or under the influence of some other person.
 The director must always be pre cautious and do all the work and activities with care and
due diligence. The directors must have all the skills and qualities required to run a
business. This will help him with the management of the company efficiently.