Law for Business Managers

LAW FOR BUSINESS
MANAGERS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Legislative provision governing the role of the sole director......................................................1
PART 2............................................................................................................................................3
Termination of Employment Contract ........................................................................................3
PART 3............................................................................................................................................5
Alternative Solutions for Dispute Resolution .............................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The business law is also known as mercantile law or commercial law, body of the rules
whether through agreement, conventions, national or international legislations, governing
dealings between the people in commercial matters. Business law is categorised in 2 distinctive
areas: First regulation of the commercial entities by laws of agency, partnership, company and
bankruptcy and second regulation of the commercial transactions by law of contract and its
related fields. The present report is based over different situations in which the applicable laws
are to be identified and applied in different situations. It is focused mainly over the business laws
which are to be applied in the company.
PART 1
Legislative provision governing the role of the sole director
The sole director is the person who is solely responsible for the management of the whole
of the business all alone. This usually undertakes within the business of the sole trader as there is
only a single person who is responsible for taking all the decision relating to the working of the
company and its growth and development (Fitz-Gibbon and Walklate, 2017). The sole director of
the company is a single person who will be responsible for the management of the complete
company single handed. All the decision and the strategies of running the business are
undertaken by the director only. All these duties and responsibilities are being provided under
the sections 172 to 177 of the Companies act 2006.
The major role of the company’s sole director is that they have to act in a way which is in
good faith for the company and try to promote the business of the company. the sole director is
responsible for taking care of the benefits of all the employees and stakeholders of the company
so that they can effectively work in the company. Also as per the section 172 it is the
responsibility of the sole director to make sure that the interest of the employees is being
maintained and achieved so that the employees are happy and satisfied working at the place. This
section also lists out that the sole director is responsible for the desirability of the company in
managing and maintaining the reputation and working against high standards so that this creates
a better image of the company.
Further the section 173 of the Companies act 2006 list out the duty which the sole
director can use in order to exercise the independent judgement. Under this section it is defined
that the director of the company has a right to exercise their independent judgment as they are
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the single director of the company and nobody else is there to take the decision. Further this
section also lists out the fact that this duty of sole director is not infringed in accordance to the
agreement entered by company and the way in which authorised by the constitution of the
company.
Furthermore, with the help of the section 174 under the Companies Act 2006 it is
analysed that the sole director is also responsible for the exercising of the reasonable care and
skill and diligence within the management of the company (Companies Act 2006, 2020). in
simpler words it means that the sole director must have proper and effective knowledge relating
to the skills and diligence in managing the working and operations of the company. this section
also lists out the fact that the sole director must have possess all the skills which are essential for
the proper and effective management of the company and the operations of the company.
With assistance of the section 175 under the Companies Act 2006 it is listed the duty of
the sole director which they have and must use in avoiding conflict of interest within the business
(Pistor, 2020). in the business there are many different situation and time when the company
finds it conflicting that which option to select in order to complete the working in proper and
effective manner. Hence, under this situation it is the responsibility of the sole director to avoid
the situation which involves the direct or indirect conflict of interest. This avoiding is essential
because of the reason that if the conflict of interest will occur then this will increase the
inefficiency of working and the time will also increase for the completion of the work in
effective and efficient manner. Under this it is the responsibility of the sole director that they
must try to manage the conflict in less time as this will hamper the operations of the company to
a great extent.
However, with help of the section 176 of the Companies Act 2006 it was highlighted that
the sole director has the responsibility to accept benefits from the third party. This is majorly
pertaining to the fact that the person is the director of the company and because of this they
cannot take any benefit from any other third party. Under this the third party is the person or the
company other than the associated body or any person acting on behalf of the company. this is
majorly pertaining to the fact that the sole director has only responsibility towards the company
of which they are director and because of this they cannot take any sort of benefit from any type
of third party.
Along with this section 177 of the Companies Act 2006 deals with the duty of the sole
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