Business Law and Legal Concepts
Added on 2020-06-05
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LEGAL ASPECTS OFBUSINESS
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11. Pros and Cons of principals of limited companies of UK.......................................................1TASK 2............................................................................................................................................52. Procedure of compulsory liquidation and its implications......................................................5CONCLUSION................................................................................................................................8REFRENCES...................................................................................................................................9
INTRODUCTIONAt the initial stage of business, owners needs to be look at legal aspects of business whichable to influence for future growth. For the same purpose they have to follow rules, regulationand policies which are imposed on them as per provision of law. Single person is able to runbusiness organization which is called as sole proprietorship. It is simplest form of structurewhich is easy to form and easy to dissolve (Pozgar, 2011). Cited firms are considered as separatelegal entity, perpetual succession and common seal. As they have to follow systematic procedurefor liquidate company. Compulsory liquidation is having impact on directors and creditors oflimited companies of UK. There is no influence of government of UK on such type oforganization.TASK 11. Pros and Cons of principals of limited companies of UK.Sole proprietorship are considered as private companies which having separate legalentity, perceptual succession and common seal. There is no role of government of UK on thesetypes of legal premises. Organization having different personality then its members. On the otherhand, organizations are able to conduct transaction with their own name. No other companies canuse the name of another firm (Kinicki and Kreitner, 2012). Owner have to follow rules andpolicies which are imposed on them as per the provision of law. After specified time ownerneeds to obtain registration for firm. Through this they can sued others and be sued by others.There are various principals mentioned under law regarding functions and activities of limitedcompanies. Case : Salomon v Salomon, 1897, in the present case Salomon is the person who owned soleproprietorship. After sometime he transferred firm into company. He engaged in the business ofbook making company which is incorporated by Salomon and his family. Furthermore, suchtransfer required some charge which is needs to be paid by owner at time of incorporation inform of specified number of shares and debentures. Such debenture consists floating charge.Through which they secured are secured against debt. Lots of debts are company unable to payand for this reason it goes into liquidation. At this all assets of company are released off and paidentire debts or liabilities. Also provide required amount of payment to all shareholders and
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