Legal Issues in Business Organizations

Legal Issues in Business
Organizations Tourism and
Events Organizations

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Explore and demonstrate how the Company law, Employment law, and Contract law has a
potential impact on business........................................................................................................3
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
Business organization are those organization that has been dealing over forming of
various kinds of rules and regulations that makes operating of business done in more organized
manner. Also this organization operates upon various kinds of laws which help in making all
kinds of process conducted in smooth manner. Also these organizations have set objectives and
goals to be achieved by them. Business organization works over company law, employment law
and contract laws. Company law has been basically formed over making incorporation done in
more organized manner. Employment law these are formed over making sure that relation is
been maintained in more organized manner between employer and employee. Contract laws
which help in making contract between parties formed in more organized manner. Scope of these
laws is wider in nature and helps in conducting business activities in more organized manner.
Nature is dynamic as it impacts working of business in more effective way. In this essay impact
of this law on business is studied.
MAIN BODY
Explore and demonstrate how the Company law, Employment law, and Contract law has
a potential impact on business.
Company law: These laws have been made for making sure that a company has been
working with smoothness and effectiveness. Law helps in forming of rules and regulation formed
over making operating within an organization done in effective manner. Also the laws have been
operating within the Companies Act 2006 of United Kingdom. As per this complex process of
incorporation is been removed. Further the act has introduced new Articles of Association that
are intended to completely reform the ambiguous arrangements that existed under the previous
law and has also made new arrangements for those companies limited by guarantee. The Act also
removed the requirement for a private company to have a company secretary and provided
companies with the ability to dispense with the requirement to hold an Annual General Meeting.
The process with regards to written resolutions was also amended so that only a 75% majority is
needed for a written resolution to be passed. The most significant change that was made to the
law under the Act, however, was the codification of director’s duties. Previously, the duties of
directors formed part of the common law which often resulted in a great deal of confusion as to
what duties were to be imposed. Also the Companies act 2006 makes clarity about obligation of
directors towards business. Further statuary code which has been created in the form of
Companies Act 2006 has some major sections which is form section 171-177 and has their own
existence in statutory form (Lu, Chen and Law, 2018). Further as per section 170 (3) directors
duties is been covered which is based upon common laws and rules of equitable principles. The