English Legal System and Business Operations

The assignment discusses the operational activities of businesses in the UK, focusing on the English legal system's influence on these activities. It examines how laws and judgments affect business practices, including the roles and duties of directors in facilitating appropriate legal solutions to issues. The study also touches upon the implications of HMRC in making legal decisions and the importance of parliament in securing human rights through various bills and amendments.

Legal Framework and Legal
solutions

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P 1 Explanation of sources of law and nature of English legal system.......................................3
P2 Identifying the role of government in law making.................................................................4
P3 Analyzing the way employment and contract law have effect on business..........................5
P4 suggesting the legal solution for resolving the business problems.........................................5
P5 justification in context with proposed legal solution..............................................................6
P6 recommending the legal system of country and relevant framework.....................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law is also recognized as mercantile legislation which are either designed
by parliament or government in a nation considering the several problems faced by an
organization. It is considered to be a legislation which is formulated by legal authority in the
country for providing suitable solution to the problems faced by companies. Each and every
country has its own legislative system which governs certain regions. For instance, English law
governs as well as regulated the companies operating in Wales and England. Business law is also
defined as legal case study which includes two parties those who are facing disputes related to
contract, merger, sales etc.
The purpose of the assignment is to develop the understanding and gain knowledge
about English legal system. It also emphasizes on identifying the function performed by
government in law making.
TASK 1
P 1 Explanation of sources of law and nature of English legal system
As per the general concept of legislation, the purpose of designing norms is to maintain
the basic structure of society and to provide the suitable solution to the problems being faced by
business entrepreneur related to running business in a smooth manner. If in case any company
fails to comply with the law or norms then in such situation firm might have to face legal
obligation, pay penalties etc.
English law is formed by the legal authorities in British legal system. Legislations in
English legislative system is formulated by government in united nation which governs as well
as regulates the activities of companies operating in England and Wales. In English legal system,
the level of legal rules violation is considered and identified by the court of law or justice
(Amato, 2015) The English law system deals with three major type and these are:
Legislation: These are the norms which are automatically originated by act of parliament.
Primary law: These forms of delegated law are designed by the deliberate assembly of the
country. Such types of norms are influenced by the several laws formed by government in

Scotland. Legal authority in Parliament has authority to issue secondary norms. Public Act, privy
council are some primary; laws in legislative system of England.
Secondary legislation: These kind of norms are designed by representative of primary legislation
authority. Some examples of secondary legislation are national assembly of Wales act, Ireland
Act etc.
Common law: These types are norms are formed by judge on the basis of decision taken by
magistrate in existing law suits.
EU law: Convention of human right this is the act in English legislative system which is
influenced by the laws in European union. It is considered to be an important norm which is
required to be followed by all companies operating business in England and Wales.
In addition to this the two other laws which are required to be considered by business
when establishing, naming, running business are company act and corporate law (Bubb,2014)
P2 Identifying the role of government in law making
Law making is considered to be as lengthy procedure and at each phase government has
important to play. The following stages include in law making are:
Details about the government agenda- At this phase, role of the legal authority in nation is to
conduct the survey and gather information about the several issues faced by companies or people
in the country. After analyzing of the situation, it is required by the legal authority to find the
appropriate solution to several issues.
Preparation of proposal –After the completion of the first stage, role of government is to prepare
the proposal which should contain the detail about the problems as well solution to the same.
Proposal to bill transformation via parliamentary counsel – Once the proposal is prepared,
function of legal authority is to present the proposal in front of small councils.
Introduction of the bill in parliament session- if the bill is approved by the legal authorizes
working at small level then further proceeding proposal should be converted into bill and same
should be forwarded to the members in parliament.

First, Second and third reading – At this phase, it is the duty of legal authority to present the bill
for first reading in house of lords. Thereafter the first reading, function of government is to make
the changes in bill as per the advice or suggestion of members in parliament. Once the
amendments have been made in proper manner, bill is to be presented for second reading. At this
phase short debate related to implementation of bill might take place. Thereafter the next phase,
legal authority is required to submit bill for inspection. Effectiveness of the bill is measured.
Approval of the bill- Once the result has been disclosed by the special committee then bill is gain
presented for the final reading where voting might take place and decision related to enforcement
of bill is made. If in case the bill is not approved by the parliament, then government has to find
alternative solution to problem (Furmston, Cheshire and Fifoot, 2012)
P3 Analyzing the way employment and contract law have effect on business
Contract law governs the commercial relationship between the parties. AS per this norm
it is required by the parties to enter into a legally binding contract. It is essential for both the
parties to comply with all the terms and condition in the contract, if any of the party fails to
perform their duties then in such case the contract becomes null and void. In context of
employment contract act, it is important for both employer and employees to perform their duties
as per the agreement. Employment contract has direct as well as significant influence on the
relationship between worker and a company. In addition to this employment legislation also have
major effect on the human resource management practices and policies designed for the benefit
of employees (Hayek,2012). Example of some employment legislation which have impact on
business are: Wage act: As per this legislations, it is required by employer to provide an
individual with the salaries or wages according to their work profile. According to the
employment act an employee have to work under the control of employer. As per the
employment right act, employees working in a company has following rights these are:
Protection against unfair dismissal, parental leave, flexible working hour, rights to preferred
payments in the event of an employer's insolvency etc. The rights provided by an employment
can only be used by employees working full time in the company. According to the contract or
employment law in UK, an individual is considered to be as an employee if person works under a
contract of employment. There should be legally binding contract between employer and
employees. Rights of workers are they are entitled to minimum wage.

According to the employment law workers is a person who commits to perform any
specific task personally or promises to provide specific service to company, this normally
excludes those who are self-employed. For instance, a carpenter working for renovating an
organization on specific occasion is required to perform the activities on the direction provided
by an enterprise.
P4 suggesting the legal solution for resolving the business problems
The nature of a private company is that it is limited by shares and equity facilitated
among the society. Therefore, there will be appropriate gains and to a firm through selling
securities in capital market. There have been various laws and acts such as Companies Act 2006,
Insolvency Act 1986 which are mainly governed by the English legal authorities. Therefore, the
motive of government is to provide appropriate legal environment and trade practices in the
nation. On contrary with the case that CP is operating as the sole trader in market thus, the firm
is small medium size business and is growing (Bunn and et.al., 2018). Therefore, there will be
rise in the capital and the firm will have appropriate economic structure as the level of funds will
be generated through equity investments which provoke the better funding operations. Moreover,
in relation with that the firm requires to plan dividend policies which are needed to be
satisfactory among the investors as to have appropriate legal solutions.
On other side, to operation the operational as well as financial governance in the business
there is needed to have understanding for the director’s duties in this respect. There directors of
these firms are liable to make payments to the shareholders before making any other investments
through the turnover the company obtains in due period. It comes under section 171 to 177 of
companies act 2006. If in any case the equity holders will not have proper disclosure of the
firm’s financial data as well as the dividend payments than o will be treated as the breach of
duties by directors. Therefore, on which the shareholders can claim over directors of the
organization. Moreover, in relation with making smooth running of the business it will be
suggested to the CP and BF that they must present the appropriate financial disclosure among the
investors on the periodical basis. It will attract the new investors as well as it will be helpful to
the existing equity holders in the firm. In addition, if the firm become insolvent than the duty of

the professionals or directors is to make first payments to the shareholders of debts of the
business.
P5 justification in context with proposed legal solution
On the basis of above case and the legal solution awarded to the companies and its
directors is that they must make appropriate changes into operations as well as bring the effective
work environment (Wills, 2017). Thus, under section 171 to 177 of Companies act 2006. If in
any case the equity holders will not have proper disclosure of the firm’s financial data as well as
the dividend payments than o will be treated as the breach of duties by directors. Therefore, on
which the shareholders can claim over directors of the organization. Moreover, in relation with
making smooth running of the business it will be suggested to the CP and BF that they must
present the appropriate financial disclosure among the investors on the periodical basis.
Moreover, it will build a satisfactory trust among the investors on the basis of company’s
performance and the directors in making the dividend payments to them. On the other side, to
have the appropriate registration there is need to have registration under Companies Act 2006
which will be effective and helpful to the business as to have the moat satisfactory legal solutions
to any issues.
Nature of registered company
An organization needed to have appropriate registration of firm which must define the
nature such as limited by shares or not as well as public and private industries. Moreover, it must
consist of various information which are needed to be listed in the memorandum of association
such as number of directors, operational framework and various relevant information.
Steps needed for setting up company

Figure 1 Setting up a new company
(Source: Starting up a company, 2018)
Role of directors and raising capital
There have been various roles and duties of directors in an organization such as:
 Perform within power and consideration of duties assigned to them.
 Considering the organization faith, targets and promote the success to retain benefits.
 Need to be attentive in terms of making adequate judgements based on various factors.
 Managing workplace conflicts as well as assigning duties as according to skills and talent
of employees.
 There is need to have proper ascertainment of proper interest rates and transactional
arrangements.
P6 recommending the legal system of country and relevant framework
On the contrary of the English legal system which is comprises with the various
legislation and legal solutions to the society. Therefore, in accordance with the operational
practices of the various Tribunals, Courts and judiciary it can be said that, it aimed at managing
the legal environment in the country (Legal systems in UK, 2018). However, there can be
satisfactory control over the businesses for fair trade practices and making the proper financial

disclosures. On the other side, to have execution over the crime and relevant activates the
judiciary impacts play the main role in managing the business operations. In addition, other than
the impacts of legal solution in the country there can be influences of various operational
practices such as there are residual freedoms to citizens as the parliament has enforced the laws
that they will give satisfactory environment to the citizens which are living in country. Similarly,
there have been various bills and amendments which were made under committee and houses as
to secure the human rights and bringing the appropriate legal solutions to people. The bills have
been passed through various stages on which there will be huge debates, arguments took place. It
comprises with the influences of the various MP’s and committee’s members who analyze the
actual usefulness of the bill and who it will be effective in overcoming any situation of providing
the legal solutions (PIZZICONI, GIORDANO and DI FERRANTE, 2017). Alongside, after
completion of various debates and arguments the bill is passed by Royal Ascent as there will be
influences of HMRC in making the legal implication of the laws and legal solutions to any
issues.
CONCLUSION
On the basis of above report it can be said that there have been various changes in the
operational activities of the business which will be effective and helpful to the professionals of
the entity as to have appropriate legal solution. CP and BF has been awarded with the various
legal advises and solutions to their problems. There has been discussion based on implicating the
laws and judgment over the business operations. Moreover, the purposes report consists of a
study over English legal system and the various amendments and laws imposed by them in the
business. Moreover, directors of CP and BF will be suggested the role and duties of a directors in
the business as well as in facilitating the appropriate legal solutions to any issues.

REFERENCES
Books and Journal’s
Amato, P. A., 2015. The Affordable Care Act: Impact on business. NORTHEASTERN
UNIVERSITY.
Bubb, R., 2014. Choosing the Partnership: English Business Organization Law During the
Industrial Revolution. Seattle UL Rev. 38.p p.337.
Bunn, C. and et.al., 2018. Shirt sponsorship by gambling companies in the English and Scottish
Premier Leagues: global reach and public health concerns. Soccer & Society, pp.1-12.
Furmston, M. P., Cheshire, G. C. and Fifoot, C. H. S., 2012. Cheshire, Fifoot and Furmston's law
of contract. Oxford University Press.
Hayek, F. A., 2012. Law, legislation and liberty: a new statement of the liberal principles of
justice and political economy. Routledge.
PIZZICONI, S., GIORDANO, W. and DI FERRANTE, L. A. U. R. A., 2017. CHAPTER SIX
TRANSLATION ISSUES FROM ITALIAN TO ENGLISH: APILOT STUDY OF
THREE COMPANIES’FINANCIAL STATEMENTS. Language for Specific Purposes:
Research and Translation across Cultures and Media, p.101.
Wills, E., 2017. Bachelor of Laws/Bachelor of Global Studies| ACU. Work. 7. pp.36-84.
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Legal systems in UK. 2018. [Online]. Available through :<
https://uk.practicallaw.thomsonreuters.com/5-636-2498?
transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1>.
Starting up a company. 2018. [Online]. Available through :< http://www.accountsco.com/set-up-
a-company-in-the-uk/>.