Business Law Essay: Company Law and Employment Impact

This essay analyzes the legal aspects of business operations, focusing on the company Gordon and Gordon, which specializes in contract, commercial, employment, and company law. The essay evaluates various legal types of business organizations, including sole trader, partnership, limited liability partnership, and limited company, and the measures required to establish each. It examines the impact of contract and employment law on businesses like Spring Ltd., highlighting key legislation such as the National Minimum Wage Act 2000, the Data Protection Act 2018, the Health and Safety at Work Act 1974, and the Equality and Diversity Act 2010. The essay also explores the responsibilities and duties of company directors, officers, and auditors, as well as the procedures for company meetings, raising funds, and shareholder meetings. It concludes by detailing how company resolutions are passed and the matters for which they are required, providing a comprehensive overview of business law principles.

Your company Gordon and Gordon who
specialise in Contract law Employment
Law Commercial law and Company law.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Evaluating the various legal types of business organisation and measures taken to form a
specific company.........................................................................................................................1
Examining the impact of contract law and employment on the business like Spring Ltd..........2
Evaluating the responsibility or duties of the director within the organization..........................3
Examining the responsibility or duties of the company officers and auditors............................3
Examining the responsibility at the time of company meeting, raising fund and shareholder
meeting........................................................................................................................................4
How company resolutions are passed, and the matters for which resolutions are required........4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
This study will highlight on the Gordon and Gordon Company who specialises in
contract law, commercial law, employment law and company law. This study will highlight on
evaluating the various legal types of business organisation and measures taken to form a specific
company. Moreover, thus it will also have impact of contract law and employment on the
business like Spring Ltd. This study will also highlight on responsibility or duties of the director
within the organization. Furthermore, responsibility or duties of the company officers and
auditors. Moreover, it also examines the responsibility at the time of company meeting, raising
fund and shareholder meeting. Moreover, it also demonstrates, how resolution is passed within
the company.
MAIN BODY
Evaluating the various legal types of business organisation and measures taken to form a specific
company.
Sole trader: It is one of the simplest form of business. The owner of the business is highly
responsible for all the assets and liabilities. In order to form the sole trader business it is
important to have national insurance number and the sole trader must also register for self-
assessment with the HMRC (Wells, 2015). Trading under the chosen business name and
registering for the tax show.
Partnership: This involves 2 or more partners who agree to share the profit and loss of the
business upon which they have agreed upon (What are the different types of business
structures in the UK? How to choose one , 2020). In order to form a partnership firm, the
first step is to select a business name, nominate the partners and register with the HMRC
Company.
Limited liability partnership: In this business organization the liability of the partner is
limited to the amount of money the individual has been investing within the business (Barbier,
Rogowski. and Colomb, 2015). In order to form a partnership firm, the first step is to select a
business name, have a selected registered address which is available publicly, have designated
members, develop a LLP agreement and register with the HMRC Company.
Limited company: It is a privately managed company which has been owned by the
shareholders and is run by the directors of the organization (Barbier, Rogowski. and Colomb,
2015). The company is considered to be as the separate legal entity which tends to have their
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own legal obligations and rights. In order to form a limited company it is crucial to select a
business name and registered it with the company’s house of UK (Wells, 2015). Application has
to be duly signed by at least one director and shareholder.
Examining the impact of contract law and employment on the business like Spring Ltd.
a.) Employment law
Employment law of UK is useful because it helps in addressing issues associated with the work it
is also very useful because it helps in protecting employees of the Spring Ltd. against
discrimination linked with age, disability, gender inequality, race, caste, religion, culture,
pregnancy, etc. Every worker who in turn has been working within the organization has right to
participate, right to refuse and also right to know individuals (Barbier, Rogowski. and Colomb,
2015). It helps in promoting health and safety and helps in preventing discrimination within the
organization. As per the specific case scenario, employees received a full contract of
employment and this results in company protection.
b.) National Minimum Wage Act 2000.
National Minimum Wage Act 2000 is a prominent law because it tends to focus on providing
minimum pay to the workers per hour (Moore, 2018). This act is considered to be very useful as
it tends to provide declaration, review and determination to pay national minimum hourly rate to
the employees of the organization. The employees must be paid at the set level which in turn
eventually helps in setting the minimum wage level of employees per hour. As per the specific
case scenario, employees should have a legal minimum obligation terms and conditions
associated with employment.
c.) Data Protection Act 2018 and GDPR
Data Protection Act 2018 and GDPR is very useful as it helps in keeping all the information
confidential within the organization. This law is very prominent because it helps in making sure
the data collected is used fairly, transparently and lawfully. General data protection is a
prominent regulation within the European law which helps in protecting and keeping all the
information private.
d.) Health and Safety at Work Act 1974.
It is considered to be as one of the most primary piece of legislations which in turn tends to cover
occupational health and safety within UK (Barker and Chiu, 2018). It is very useful as it tends to
lay down the rules and regulations which enforces workplace health and safety within UK. It is
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very useful in setting general set of duties which employers have towards employees. It is useful
in protecting the welfare, health and safety at the work. It is very useful because it helps in
ensuring that the organization has taken necessary precautions to protect the employees of the
company.
e.) Equality and Diversity Act 2010.
Equality and Diversity Act 2010 tends to provide legal framework and helps in protecting the
right of the individual from unfair treatment. It helps in promoting equality within the
organization (Davies, 2020). It is useful for the employees of the organization to protect them
with characteristics such as age, disability, marriage, pregnancy, sex, religion, belief, maternity,
civil partnership, etc. It helps in providing equal opportunities from various unfair treatment
within the company. As per the specific case scenario, appropriate policy and procedures must
comply within the organisation’s systems in order to comply with the company law.
Evaluating the responsibility or duties of the director within the organization.
The legally based director is to effectively promote good governance within the
organization. It is very useful in ensuring that each director of the company us must effectively
work within the interest of the organization and the stakeholders of the company (Taylor, and
Emir, 2015). The key role of the director is implement and determine policies in order to take
decision. The director is also responsible for keeping records, calling meetings and also focuses
on preparing statutory documents. Directors also focuses on providing positive input which helps
in developing relevant set of organizational policy. Director is also responsible for upholding
high degree of ethical standards at specific board level. Devoting sufficient time to carry out the
duties of the director. Directors also focuses on perform the specific set of duties which has been
delegated by the board members. The directors of the organization can delegate the
representative powers of the directors to one or more members (Cabrelli, 2016). Moreover, at
least one members associated with the BOD have a right to right to bind and represent the
organisation.
Examining the responsibility or duties of the company officers and auditors.
The key responsibility of the company officer is to effectively manage the day to day
operations of the business (Barbier, Rogowski. and Colomb, 2015). The company officers in turn
tends to focus on effectively maintaining records, managing finances of the company, hiring and
firing of employees, delegation of the task, etc. are considered to be as the key responsibilities
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which has been carried out by the company officers (Golynker, 2015). The key responsibility
which is highly associated with the auditor within the organization is to examine records, operate
practice, examine the key records, prepare and analyse the key final reports, verify all the assets
and liabilities of the company, etc. are key responsibilities of the auditor. The company officers
and auditors tends to delegate the task to the members by determining standards and providing
support to the members of the organization (Barbier, Rogowski. and Colomb, 2015). The tasks
are effectively delegated to the members because the company officers and auditors have power
to delegate few task to the members.
Examining the responsibility at the time of company meeting, raising fund and shareholder
meeting.
The key responsibility associated with the collection of the debtor’s balance is considered
to be of utmost importance (Barbier, Rogowski. and Colomb, 2015). Raising short term fund
and long term fund is considered to be of utmost importance. Every organization tends to have
high degree of general meeting within the organization. The shareholders tends to have powers
to approve and also reject the decision of the director (Hannigan, 2018). Moreover, the voting
right of the shareholders has been protected within the statutory rules. This entitles the
shareholders to call for the specific meeting within the organization. The key responsibility is to
make sure that, the board secretary make sure that, all the board members arrive at the meeting
on time. This way it helps in taking better decision for better efficiency of the organization.
Taking accurate meeting notes and sending circulars to all the board members on a timely and
prescribed manner. This way it helps in sending the circulars to all the shareholders in order to
take appropriate decision on a timely and prescribed manner.
How company resolutions are passed, and the matters for which resolutions are required.
A company resolution has been made by the shareholders and the company director in
order to make appropriate decision the way company operates. Moreover, resolutions within the
organization has been passed at the meeting which has been carried out by the show of hands.
Ordinary resolution can be passed within the organization by simply meeting the show of hands
(Countouris, 2016). The BOD are entitled to vote or the proxies can also vote.
The ordinary written resolution can also be passed by the simple majority of voting rights who in
turn are considered to be as the eligible members.
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Special resolution is passed by the organization by the show of hands by the members at
the general meeting. The shareholders tend to require at least minimum of 75% of the vote which
has been duly cast by the shareholder in order to pass the special resolution. It is crucial to pass
the circulars to the members with 14 days.
Director resolution is considered to be as the written document which helps in describing
the action which has been authorized by the BOD of the organization (Freedland and et.al.,
2016). However, the director resolution is however marked by all the directors within the
organization.
Resolutions are passed within the organization because they are considered to be as one of
the best method which helps in revoking the action which has been taken by the BOD. Corporate
resolutions is considered to be as one of the formal declaration which has been made by the
corporate entity. These resolutions are useful in the organization because it helps in determining
which corporate officers are legally binded to sign specific contract and it also helps in taking
design related with the specific subject matter (Barbier, Rogowski. and Colomb, 2015).
Resolution is useful to take various important decision which in turn binds the specific
corporation.
CONCLUSION
From the above conducted study it has been summarized that, there are various legal types
of business organisation such as sole traders, partnerships, limited liability partnership and
limited company. This study also states that, National Minimum Wage Act 2000 is a prominent
law because it tends to focus on providing minimum pay to the workers per hour. The key role of
the director is implement and determine policies in order to take decision. It has been
summarized that, the company officers and auditors tends to delegate the task to the members by
determining standards and providing support to the members of the organization. Resolutions are
passed within the organization because they are considered to be as one of the best method which
helps in revoking the action which has been taken by the BOD.
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REFERENCES
Books and Journals
Barbier, J.C., Rogowski, R. and Colomb, F. eds., 2015. The sustainability of the European social
model: EU governance, social protection and employment policies in Europe. Edward Elgar
Publishing.
Barker, R.M. and Chiu, I.H.Y., 2018. Unfinished Work in UK Company Law, Reforms: A
Normative and European Perspective to Addressing the Gaping Holes in Directors’
Duties. European Company Law, 15(6), pp.194-204.
Cabrelli, D., 2016. Employment Law in Context: Text and Materials. Oxford University Press.
Countouris, N., 2016. The changing law of the employment relationship: Comparative analyses
in the European context. Routledge.
Davies, P., 2020. Introduction to company law. Oxford University Press.
Freedland, M and et.al., 2016. The contract of employment. Oxford University Press.
Golynker, O., 2015. Family-friendly reform of employment law in the UK: an overstretched
flexibility. Journal of Social Welfare and Family Law, 37(3), pp.378-392.
Hannigan, B., 2018. Company law. Oxford University Press, USA.
Kane, E.J., 2018. Ethics versus Ethos in US and UK Megabanking. Journal of Financial Services
Research, 53(2-3), pp.211-226.
Moore, M.T., 2018. Shareholder primacy, labour and the historic ambivalence of UK company
law. In Research handbook on the history of corporate and company law. Edward Elgar
Publishing.
Taylor, S. and Emir, A., 2015. Employment law: an introduction. Oxford University Press, USA.
Wells, P.J., 2015. Executive remuneration: regulatory reforms in UK company law. International
Journal of Law and Management.
Online
What are the different types of business structures in the UK? How to choose one .
2020. [ONLINE]. Available through< https://www.wellersaccountants.co.uk/blog/what-are-the-
different-types-of-business-structures-in-the-uk >
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