Legal Issues in Business Organizations

This essay discusses the formation of different types of business organizations, including sole proprietorship, partnership, and company, and the legal remedies that can be taken to resolve disputes. It also explores alternative dispute resolution methods such as negotiation, arbitration, conciliation, and mediation. Subject: Business, Course Code: N/A, Course Name: N/A, College/University: N/A

Legal Issues in
Business
Organizations

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Elaborate formation of three variant types of businesses organizations and also explain the
appropriate measures and legal solutions which can be taken to resolve disputes.....................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Law plays an important role in the society as it helps in making the implementation of
rules and regulations with the governmental concern and e Valuation. UK comprised of both
common and statutory law and all of them helps in managing and regulating the functions of the
business and general living in order to manage the profit and also to uplift the growth of the
nation by following all the law and order. Their is been seen that in business organisation there is
major requirement of applying legal rules in order to make the work smooth and free of any kind
of discrimination. Their are so many types of business namely partnership, sole proprietorship,
corporation etc. the major focus of all such companies is to generate the economy and growth for
the nation and for their own benefits (Mehra, 2018). In this essay there will be detail information
about the formation of 3 types if business and also the legal remedies that can be taken by therm
in order to resolve the disputes that arise at the time of business transactions.
MAIN BODY
Elaborate formation of three variant types of businesses organizations and also explain the
appropriate measures and legal solutions which can be taken to resolve disputes.
Business complies of managing, promoting and enhancing the productivity in the market
as by generating the goods and the services for the customers and to manage and uplift the
standard of living. In order to manage the growth and the management their seems to manage all
the exchange rates, incorporation, property rights and many more. The major concern for all the
company is to manage the profit and also predict systematic approach as in context to working.
In order to manage the business practises there is been seen that different kinds of
business are being carried out in UK which helps in managing the growth in the revenue and
production(Menkel-Meadow, 2017). They are firstly Sole Proprietorship, this is known for its
small scale business practises in which the singe individual use to carry out different company
and all the rights and the decision making is being made by that particular individual. The owner
manage all such company in order to manage the standard of living and also to implement the
growth and the establishment by by providing basic necessity for all. The sole trader is
responsible for all the debts, assets and the liabilities in the practise. The major benefit of all such
business are like, the person will gain all the profit by their own as there is no other person to
share all those net income. It considers to have simple registration in companies house through

HMRC and is not time taking and costly. The issue which the sole proprietors use to face is
unlimited liability and the over burdened issue with hectic schedule (Abedi, 2017).
Their is another formation of business which is partnership it involves two or more
persons which mutually agrees to share all the common profit, loss, liability and all the assets
together. In all such firm the decision taken for the business is for their own benefit and they
manage and take all responsibility equally. They manage to have unincorporated entities and all
the taxations are to be given by them for their own good and they also mange to maintain the
general earning benefits through the personal taxation and withdrawn nature. The two major kind
of partnership are like, General partnership in which the registration is being laid through
HMRC and it comprise that all the shares and the taxes are mutually being discussed and
divided. They frame and manage all the decision making together. In any misconduct that is
being laid by any of the partners then all of them will be held responsible for that issue. The
another kind is Limited Liability Partnership (LLP) it frames and manage all the compulsory
management account funds, their the partners will have to provide all the tax regarding to the
profit which is being generated by them individually with the help of self assessment (Rohr,
2017). In all the LLP all the partners will only be liable to the extent of shares they have drawn
in that firm. It means that LLP focus on providing the national insurance in HMRC through
which the funds are managed and the growth and revenue generation can be achieved for
further growth success. The shares and the profit which is being given to all the member are
managed and executed with alliance and shareholders. They only have the liability to the extent
in which the company will manage the business and also their mutual and particular shares.
Other then this there is Company which considers to have registration form the court and
the public office it is generally a complex process in which they manage all the agreements lies
between the members. The documentation is being given in order to manage the business in the
company and there frames to have all the constitutional implementations to law. This is
considered to be an artificial personality and also have perpetual succession which are different
from the owner (Khasnutdinov, and Maloletkina, 2021). It involves Article of Association,
Memorandum of Association and signature and all the details of the members in the company.
This is made in the registry office so as to manage and implement the rules and the work for the
company. It is of two types like the private company which connects all the details and the
management by the private individuals and their will not be nay kind of involvement of the

government as the members by themselves manages all the assets and the liabilities. The other
one is Public company it is made when the company which is being owned by the private
individuals turns up to come i=under the hands of government. Here the management and the
shares are allocated by the directors with the help of share holders which are involved in business
practises. It requires a formal method and the procedure through which the Memorandum of
association, Article of Association are being made. The registration is made in companies house
and no person can take the name which is being already used by any of the company. Public
company manages all the details and the signature with the details of the shareholders who are
involved in it thus in order to manage the business of the formation of public company all the
requisite are needed to be fulfilled with opt manner and through the systematic approach with
government involvement (Kapoor, and et. al., 2020).
As the business use to involve so many individuals and their consist of different ideas and
the perceptions with one another, so their use to be observed so many issues and the general
conflicts in their mean time. In order to solve all such disputes some of the methods are given, as
litigation is one of the oldest form of dispute solving method in which the parties go to the courts
but this involve a time taking process and is expensive too. Their are some more methods which
are approved by HMRC too that it can helps in managing and solving the issues between the
parties in cheaper and less time taking process it is called as Alternative Dispute Resolution. It is
a Civil Procedure rule given in 1986 which provides the legal solutions as outside court
settlement. The tax payers in UK majorly focus on talking as the common method to solve the
issues(Siti Nuraini, 2020).
The most observed benefits of ADR are like it is a consensual process as the parties will
not being involved in any kind of compulsion to adapt ADR they can at any time if don't seems
fit can change and manage all the application of the work through any other process. And they
also provides so many different options as for the parties in context to manage the solution of
dispute. ADR manages a flexibility as both the parties can manage the hearing according to their
comfort and their will not be any strict applicability of rules which make it difficult for them to
manage. Alternative dispute resolution is cheaper process as this will not require so much of
cost and it will nit effect the pocket of the parties any person can easily afford it, and this also
manages and save time for the parties as it does not have so much of long and ongoing hearings.

The first method is Negotiation in this the parties use to appoint a third party which will
be a negotiator and that person will hear both the parties and try to give the amicable result and
solution to all. Their the main focus of the negotiator is to make a win- win situation to both and
of the parties agrees they will raise the judgement according to it. This is considered to be an
informal process with all the negotiating situation to be made so as to resolve it (Gajewska, and
Grigoroudis, 2017). Another is Arbitration it is the formal process in which arbitrator is
appointed by the both the parties in odd numbers so as to gain the judgement and also to manage
a proper solution. In this process arbitrator use to hear the parties and also collect the evidence
according to it. They try to manage and also cover all the decision as in regard to be fair. When
the decision is being made then signature will be taken by the parties and this will create an
binding impact on all. Their came be made a proper flexibility to both the parties for the date
and the time on which the hearing is being taken place. The decision is being made on the basis
of majority and also it is enforced according to the method and the examination provided for the
facts(Zain, 2020).
Another Alternative dispute resolution is Conciliation this is mainly been seen in
employment contract and the family disputes arises in all. Here the conciliator is appointed that
can be maximum 3 and the parties give all the issues that are being made in between them. Here
all the evidence are collected and the issues are being presented among them. They also manage
and make all the effective decision as by hearing both the parties. The parties also have the right
that they can manage and make their own agreement on which they want the dispute to be
solved. Thus once they both agrees it will create a binding impact and will manage a binding
impact on all.
Lastly, Mediation in which the mediator is appointed in the parties and they will have to
give the decision by hearing both of them. This is the cheaper process in which the person who
will act as a mediator will not be a known to any of the parties and that person will try to resolve
the issue by giving a proper solution. The mediator will give a judgement and if the parties
agrees they will implement it or else they can take the help of the court in order to solve the
dispute. Thus, these all are some easy and effective Alternative dispute resolution which can e
used by the parties in business conflicts (Chatterjee, Ghosh, and Chaudhuri, 2020).

CONCLUSION
This essay concludes that, business organisation is the formation of effective business
like the sole proprietorship, partnership, company etc. all these business focus on generating
income to the nation and to manage standard. Partnership is when individuals agree on each
other to share common interest and profit together it can be general partnership in which all the
partners are liable for the issues, and the limited liability partnership where the parties will only
have the competency according to the shares given by them. Further it can also be concluded
that, Alternative dispute resolution is an effective methods to solve the dispute and also to
manage speedy trials they are like Arbitration, conciliation, mediation and negotiation.

REFERENCES
Books and Journals
Abedi, F., 2017. Universal standards for the concepts of fairness, trust and security in online
dispute resolution in B2C e-disputes (Doctoral dissertation, Victoria University).
Chatterjee, S., Ghosh, S.K. and Chaudhuri, R., 2020. Knowledge management in improving
business process: an interpretative framework for successful implementation of AI–
CRM–KM system in organizations. Business Process Management Journal.
Gajewska, T. and Grigoroudis, E., 2017. Estimating the performance of the logistics services
attributes influencing customer satisfaction in the field of refrigerated transport.
International Journal of Shipping and Transport Logistics, 9(5), pp.540-561.Weismann,
M.F. and Holder, C., 2021. Ruthless Utilitarianism? COVID-19 State Triage Protocols
May Subject Patients to Racial Discrimination and Providers to Legal Liability.
American Journal of Law & Medicine, 47(2-3), pp.264-290.
Kapoor, V., and et. al., 2020 Section of Dispute Resolution Second Report of the Section of
Dispute Resolution Nominations Committee.
Khasnutdinov, R.R. and Maloletkina, N.S., 2021. Information Technologies as a Tool for
Preventing Corruption in Organizations in Russia. In Current Achievements, Challenges
and Digital Chances of Knowledge Based Economy (pp. 797-804). Springer, Cham.
Mehra, M.R., 2018. Human Resource management and its importance for today’s organizations.
Journal of HR, Organizational Behaviour & Entrepreneurship Development, 2(2),
pp.15-20.
Menkel-Meadow, C., 2017. The evolving complexity of dispute resolution ethics. Geo. J. Legal
Ethics, 30, p.389.
Rohr, J.G., 2017. Freedom of Contract and the Publicly Traded Uncorporation. NYUJL & Bus.,
14, p.247.
Siti Nuraini, A., 2020. Sayor Kitchen/Siti Nuraini Aznam.
Zain, I.S., 2020. Authority of Consumer Dispute Resolution Agency (BPSK) on Calling of Land
Agency Makers (PPAT) in Dispute Resolution through Mediation outside the Court. JL
Pol'y & Globalization, 98, p.34.