Law for Business Managers

Law for Business
Managers (LAW011-1)

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Case scenario...............................................................................................................................3
Legislative provisions.................................................................................................................3
PART 2 ...........................................................................................................................................5
Case scenario...............................................................................................................................5
Employment contract..................................................................................................................6
Process of dismissal of employment contract.............................................................................6
Whether can Gemma terminate the contract of employment with Charanjit?............................7
PART 3 ..........................................................................................................................................8
Case scenario...............................................................................................................................8
Alternative Dispute Resolution...................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law governs all the laws that either directly or indirectly related to the business
activities of an organisation. For the upliftment of the society and economy of the nation,
business plays a very important role. With the help of business, a country generate profits and
revenues which directly impact the economy of the nation and also nation's growth is dependent
on it. To run any business effectively, it is important that they abide with all the rules and
regulations provided by the law in order to function and manage business activities. Business law
provides with rights and duties to be followed by an organisation and its employee for the
functioning and management of the company (Barker, 2018). There are many laws which are
part of business law. They are: law of contract, employment law, company law, alternative
dispute resolution, insurance law, etc. These laws help organisation to work efficiently and
smoothly. This report consist of three different parts. The first part of the report explains about
the roles of a director of the company and laws that regulates the role of directors. The second
part of report explains employment contract and the process in which an employee is terminated.
The third part explains the methods of alternative dispute resolution methods between the parties.
PART 1
Case scenario
The clean Machine limited company has a sole director named: Gemma. This company
supplies protective equipments within the country of Bedfordshire to most of the small scale
businesses. Its the first time that Gemma is a director of the company and is running the whole
business solely. Therefore, she is unaware of the roles and responsibilities of a director and
wants to know them. She also wants to know of all the provisions under law that governs a
director's role.
Legislative provisions
A legal entity indulge in business activities which is formed either by an individual or
group of individuals is called as a company. A company is formed to achieve the set goals of the
company and earn profit. The companies in United Kingdom (UK)are all governed by the
Companies Act, 2006 (Hill and Moll, 2017). Companies are mainly of two types based on the
capital invested, i.e. public companies and private companies. Public company is that which
raises its capital by issuing shares to the public and on the other hand private company do not

make its shares public and there is no involvement of public in the private company. A company
can also be divided on the basis of the liabilities arising in the business i.e. limited or unlimited
company. In limited company, liabilities of the directors are limited to the capital invested by
them and in unlimited company, liabilities of the director are unlimited and all are equally
responsible.
Gemma being the sole director of the clean machine limited company is expected to
perform all her roles and duties as the director. This will help Gemma to function and manage
business activities efficiently. Being a director of the company is a high post which is full of
responsibilities and duties as they are solely responsible for the management of the business
activities. Under sections 171- 177 of the companies act, 2006 there are 7 general duties
provided by by the law to which the director of the company are obliged to. The powers of the
director of any company are mentioned in the association of article i.e. AOA of the company.
The powers of the directors vary on the basis of the business and its activities. Therefore it is
important for a director to know their duties and responsibility to earn profit, learn how a
business is to be managed and to help company grow.
The 7 general duties of any director mentioned under the companies act, 2006 in the UK
are:
 The powers given to the directors of the company are mentioned in the Association of
Article of the company (Burba, 2017). The powers may vary from business to business
as per the structure and functioning of the company. The director should always act in
accordance to those powers specified under the AOA and must not do any act which is
not under his powers.
 The director must always act for the profit and welfare of the company. Actions and work
of the director must always he must always act in good faith for the company. The
decisions of the director must be proper so that it should increase the profit and growth of
the company. The decisions made by the directors shall have good impact on the
reputation and image of the company. It should also be made in accordance to the long
term success of the company.
 The directors judgement and decisions must be related to providing benefi6t to the
company as whole and it must always be futurist. The decision of the director must be not