Business Law Report: Sources of Law, Company Structure, and Capital

This report provides a comprehensive overview of business law, examining various sources of law within the English legal system, including legislation, primary and secondary legislation, common law, and EU law. It identifies the role of legal authorities in the law-making process, outlining the stages from government agenda to bill approval. The report analyzes the impact of employment and contract legislation on organizations, emphasizing the importance of written agreements. It further explores the nature of a registered company, highlighting the roles and responsibilities of company directors, and the ways in which a limited company can raise capital through debt and equity. Finally, the report addresses alternative legal solutions for resolving business problems, offering a practical understanding of business law principles.

Business law

TABLE OF CONTENTS
TASK 1............................................................................................................................................1
P 1 Different of sources of law...............................................................................................1
P2 Identifying the role of government in law making............................................................2
TASK 2............................................................................................................................................3
P3 Determining the approach employment and contract legislation have impact on
organization............................................................................................................................3
TASK 3............................................................................................................................................4
Nature of registered company and role of directors of company...........................................4
Ways for limited company to raise its capital........................................................................5
TASK 4............................................................................................................................................6
Alternative legal solutions for resolution of business problem..............................................6
CONCLUSION..............................................................................................................................7
REFERENCES...............................................................................................................................8

INTRODUCTION
Commercial legislation is also referred to as commercial law that is created by
legal authority in the country on the basis of different issues faced by companies in several
industries. In context of company law, these are the legislations which are formed by legal are
formed by government for preventing the unfair competition. Every nation in the world has its
own legal system which governs as well as regulates activities facilitated at specific region. For
example, English law in British legislative system which control as well as regulates the business
activities conducted by an organization UK. Legislation related to the business is also considered
to be as lawful case scenario in which two parties those who are facing commercial dispute on
the subject matter associated with contract, merger, sales etc. The objective of the report is to
highlight the sources of different law. It has focus on recognizing the function of legal authority
in law making procedures. Study also emphasizes on analysing the way company or contract
legislation has effect on business.
TASK 1
P 1 Different of sources of law
According to the universal notion of law, the objective of implementing legislation well
as norm is to offer companies with the appropriate solution to several business problems. If in
situation when any firm fails to follow the legislation in such case an organization faces legal
issues, pay penalties etc.
British legislation is created by the authorized member in European Legal system.legal
system. There are several norms in English legal system which are designed as well as
implemented by legal authority in UK which control as well monitors and regulates the business
operation of an enterprise operating in Wales and England. In English legal system (Amato,
2015) the different sources of law are:
Legislation: These are which are automatically originated by act of parliament.
Primary law: It recognized as delegated law which are formulated by the deliberate assembly of
the nation. There is some legislation in English legislative system which are inspired or affected
by the different legislation which is created by the legal authority in European Union.
Secondary legislation:
Communal law: Such norms are developed by judges in the courts on the foundation of
determination or judgement made by magistrate in present cases.
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EU law: Convention of human right, it is the law in English legal system which is affected the
laws in European Union. It is considered to be an essential law which is needed to be complied
by all organization operating business in United Kingdom .
In addition to this, corporate, contract, company and other acts related to the employment
are very important for an entrepreneur to follow when establishing new venture or running
business. As these norms have direct as well as significant impact on the business policies,
procedures and system. Legislation defined the way business activities should be executed and a
company should be managed. (Bubb, 2014)
P2 Identifying the function of authorities in law making
Law devising is recognized to be as a formal, lengthy process in which at each and every
stage, legal authority in the country plays important role. The main function of legal authority in
the nation is to represent the interest of people in the country and help a nation in identifying the
appropriate solution to the problems. In addition to this the legal authority in the nation makes
signification role in both formation as well as enforcement of norms in the country. There are
several stages in law making procedure:
Details about the government agenda- It is considered as first phase in which function of
government in the country is to execute market research and collect information about several
problem faced find suitable solution by an enterprise. After observing the situation, it is needed
by government to find solution to problems which are faced by people or organizations.
Drafting of proposal –After the first phase, at the next stage, function of legal authority is to
create the proposal which consists of the detail information about the issues and solution to the
various major problems in the country.
Proposal to bill conversion via parliamentary counsel – Once the proposal is drafted; role of
government is to present the draft of proposal in front of legal bodies working at lower level in
hierarchy of English legal system for approval.
Presentation of the bill - if the bill is approved by the local bodies working at lower level in
hierarchy then it is required by government to convert proposal in bill format.
First, Second and third reading – At this stage, it is the function of government is to forward the
bill for first reading before House of Lords or members in the parliament. After the completion
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of first reading, legal authority is to require making the medications in bill according to the
feedback or suggestion of members in parliament. After making changes in systematic way,
Function of government is to forwarded for second reading .At this phase short discussion
related to enforcement of bill might take place. Thereafter the next stage, it is needed by
government to present bill for inspection by special committee in the parliament. At this phase,
Effectiveness of the bill is measured on the basis of which decision related to the on the approval
of the bill is made.
Approval of the bill - Once the result has been disclosed by the special committee then bill is
presented for the third reading where voting might take place and decision related to
implementation of bill is made. If in situation bill get rejected by the members in parliament,
then government has to identify other suitable solution for the issues (Urmston, Cheshire and
Fylfot, 2012)
TASK 2
P3 Determining the approach employment and contract legislation have impact on organization
Written agreement legislation regulates the commercialized relation betwixt the parties in an
organization.As this activity helps parties in seeking the support of court or tribunal during the
time of commercial disputes. As per the contract legislation it is important for both the parties in
contract to follow execute task as per the terms and condition in the contract. If any of the party
fails to execute task as (Hayek, 2012).Contract as per the legislations is a legal document which
governs oral and written agreement. Employment legislations, covers the following areas of
employment: employment contracts and conditions.s
TASK 3
Nature of registered company and role of directors of company
Registered company is considered as business enterprise that is registered under the
company’s act 2006 including the organization which is earlier registered under the any of the
previous company. It is also legal entity which is formed individuals to gain profits and for other
purposes (Cheeseman, 2013). Nature of registered organized in UK is considered as very viable
as they are able to deal with overseas clients. As per companies act 2006, there are various
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important legal rights have been achieved registered company. The location of organization
should be in the jurisdiction in which the enterprise is registered and nay requirement of changes
in its address must be notified which is identified as effective measure for accomplishment of
business operations. In this context, Country pine has been continuously operating as sole trader
in UK, required to become limited company which is considered as kind of business structure
that has been incorporated at companies house as legal person (Mann and Roberts, 2015). It is
considered completely separate from its owner. By being a limited company, country pine will
become able to enter in to contract in its own name and will be responsible for its own actions,
finances and liabilities. Moreover, owners of country will be protected by limited liability that
clearly means they will be only responsible for business debts up to the value of their
investments. After being limited company which is required to registered under companies house
as limited by shares or guarantee (Folsom and et.al, 2012). Limited by shares companies are
owned through one or more effective shareholders and managed by one or more effective
directors.
In addition, company directors must have extrinsic powers in order to manage the Limited
company which are delegated by the shareholders with the company’s article of association.
Directors are obliged to act in good faith and in the best interest business enterprise. In country
pine, there are various important roles of directors which are mentioned above:
To act within power (regulation 16): This act clearly provides an understanding that director
of country pine needs to comply with company’s constitution and decision which are made
under the constitution and decisions made under the constitution and must exercise its powers
under some situation or reasons which are provided.
Promoting success of company: As per the companies act, directors also needs to perform their
duties and action in order to provide success to business enterprise. They are completely bound
towards actions, liabilities and profits of organizations (Miller and Cross, 2012). They should
take effective business decisions in order to provide benefits to shareholders. Country directors
are responsible to foster company’s relationship with its suppliers, customers and others. They
should also works for the interest of employees of organization. They also impacts on
organizations operations on the community and the environment.
Exercise independent judgement: Directors in country pine also responsible to take
independent business decisions and judgement of business problems that needs to be taken by
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management (Macaulay, 2018). Some companies’ directors and shareholders are sample people
who created difficulties for organization to take independent judgement issues and sharing of
profits. Country pine directors needs to avoid conflicts and should not accept any benefits from
the third parties like competitors. Director of country pine is required to act fairly as among the
members of business enterprise.
Providing growth opportunities; through development of relationship with various other
business enterprise and suppliers, directors of country should provide growth opportunities for
organization (Coffee, Sale and Henderson, 2015). They tend to raise investment from various
other companies and shareholders.
Exercise reasonable care, skills and diligence
Ways for limited company to raise its capital
Limited company is considered as kind of business structure that has been incorporated at
companies house as legal person. It is considered completely separate from its owner. By being a
limited company, country pine will become able to enter in to contract in its own name and will
be responsible for its own actions, finances and liabilities. When country pine becomes limited
company then they will obtain for business various sources like:
Debt capital: It involves most common types of ways like banks loans, personal loans, bonds
and credit card debt. Bank loan is provided by to organization having high profitability in market
and able to repay the debts in the future (Nichols, 2012). Further, personal loan can also be
taken by directors, shareholders and owners of business enterprise in order to regulate business
operations. Further, bonds are also considered as type of borrowings which are offered by banks
and government in order to provide financial support to business enterprise regulating business
within country. There are various bonds have been introduced by government of UK, in order to
provide financial assistance to limited companies which are essential for growth of economy
Equity capital: This is type of investment which is generated by country after sales of shares of
stock to public. As per law, limited companies which are registered house of companies can raise
their capital by selling of additional shares (Burnham, 2016). These can be either equity shares or
preference shares. For CP, it is considered as effective to get investment from shareholders and
also provided them partnership in company’s liabilities and profits in order to reduce the
burden. . Moreover, primary benefit of equity capital is that, different from debt capital,
organization is not required to repay shareholders investments.
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TASK 4
Alternative legal solutions for resolution of business problem.
As per given scenario, it has been analysed that country pine is limited company that
imports timber from suppliers in Poland. This timber always arrive to CP in the form of flat
packs which are further assembled by employees. There are various situation have been
occurred in which flats packs have contained defects. However, polish suppliers have also
provided refund to country pine. Further, organization is aware that increase in supply to timber
can create issues and conflicts on the quality of flat packs. They are also aware that these kinds
of dispute can be effective resolved quickly and cheaply.
For this, alternative dispute resolution is analysed as procedure which is used for settlement of
disputes without filing any litigation in court such as Arbitration, mediation or negotiation and
adjudication. It is identified as less costly and more expeditious (What is Alternative Dispute
Resolution?, 2017.). Further, these are continuously being used in disputes that will otherwise
result in litigation. In this context, country pine can also use various alternative dispute
resolution methods which are mentioned above:
 Mediation or negotiation: It is analysed important method which involves intervention
thirds which helps in resolution of issues effectively. Mediation is process that involves
both the parties to appoint a mediator which needs to independent and provides
suggestion after analysis of information provided by both the parties (Pryor, 2016). In
this context, CP can also use this method and hire individuals by concerning with
supplier of Poland. Further , this method will be considered as successful when both
parties have reached at compromise that supplier of Poland needs to refund of defective
products and CP is required to pay amount of effective pieces as per discussion. Decision
provided by mediator cannot be binding upon the parties.
 Arbitration: A process that is considered as similar to an informal trial where the effective
impartial third party can hears each side of dispute and other issues of decision. It is also
alternative process that involves intervention third party which is considered as arbitrator
(Dye, 2017). It is mainly appointed by court when parties are not able to resolve their
dispute through mediation. In present case, Arbitrator will consider the view point of both
parties such country pine and supplier of Poland. On the basis of facts and consideration
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of evidence, Arbitrator will provide its judgement to court within some specific days.
Decision is legally binding for both the parties under arbitration.
CONCLUSION
It has concluded from the report that employment as well as contract law has direct and
significant impact on the business. Assignment has highlighted the different sources from where
the several legislations in English legal system have been originated. It has been concluded from
the report that, all organization should follow the regulation as well as norms. As this activity
will help business entities in avoiding the legal obligation and will assist in running business in
smooth manner. It also has been concluded from the assignment that company law governs the
all aspects of business that is from establishing to running the business. Report has also
concluded that employment as well as contract law has positive impact on business .These
legislations has direct and significant impact on the human resources practices. It has been
suggested to both employer as well as employer to perform their duties as well as fulfil
responsibilities as per the employment agreement. As this help both parties in developing as well
as maintaining strong relationship with each other. In present case, Arbitration is identified as an
effective alternative dispute resolution method that needs to use by country to resolve its issues
with suppliers of Poland.
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REFERENCES
Books and Journals
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.
Burnham, W., 2016. Introduction to the law and legal system of the United States. West
Academic Publishing.
Cheeseman, H.R., 2013. Business Law: Pearson New International Edition. Pearson Higher Ed.
Coffee Jr, J.C., Sale, H. and Henderson, M.T., 2015. Securities regulation: Cases and materials.
Dye, J.C., 2017. Alternative Dispute Resolution. The Catholic Lawyer, 33(1), p.12.
Folsom, R.H., Gordon, M.W., Spanogle, J.A., Fitzgerald, P.L. and Van Alstine, M.P.,
2012. International business transactions: a problem-oriented coursebook.
ThomsonReuters.
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.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
Mann, R.A. and Roberts, B.S., 2015. Business law and the regulation of business. Nelson
Education.
Miller, R.L. and Cross, F.B., 2012. Business Law, Alternate Edition: Text and Summarized
Cases. Cengage Learning.
Nichols, P.M., 2012. The business case for complying with bribery laws. American Business
Law Journal, 49(2), pp.325-368..
Pryor, W., 2016. Alternative Dispute Resolution. SMU Annual Texas Survey, 2(1), p.3.
Online
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What is Alternative Dispute Resolution?, 2017. [Online]. Available through:<
https://hirealawyer.findlaw.com/choosing-the-right-lawyer/alternative-dispute-
resolution.html>
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