Business Law Report: UK Law, Parliament, Directors, and Companies Act

This report delves into key aspects of UK business law. It begins by defining the sovereignty of Parliament and explores the various sources of UK law, including statutory and common law, and the role of the government in law-making. The report then examines the Companies Act 2006 and its implications for directors' duties. Furthermore, it analyzes case studies, including issues related to creditor actions, liquidation processes, and potential legal solutions for businesses facing challenges. The report provides an overview of the legal framework within which businesses operate, offering insights into the rights, obligations, and potential legal remedies available to businesses in the UK.

BUSINESS LAW

Table of Contents
INTRODUCTION..............................................................................................................3
TASK 1.............................................................................................................................3
P1 Meaning of the statement of ' Parliament is sovereign” and various sources of UK
Law...................................................................................................................................3
(LO2) TASK 2...................................................................................................................5
TASK 3....................................................................................................................7
A)1 Champion Ltd on whether the creditor has the legal power to do what they
threatening and the process for liquidation (LO3)........................................................7
2 Amber Ltd on the possibility of getting the injection..................................................8
b) For CASE 2 recommend an alternative legal solution (LO4)...................................9
CONCLUSION....................................................................................................... 11
REFERENCES.......................................................................................................12

INTRODUCTION
Business law have great significance within the organisation by which several
business activities and function carried out with secure and safe manner. With help of
law, each activity can accomplish with systematic norm and format. Government have
developed some legislation and regulation for in order to protect the business operation
and activities. The present report provides the knowledge about several sources of UK
laws and role of government in law making procedure (Robson, 2015). In addition to
this, impact of some legislation and regulation such as health and safety, equal
opportunity, general data protection regulation has been also included in this report.
Different legal solution that helps to business enterprise in solving the critical issues and
conflicts has also discussed with respect of UK business law.
TASK 1
P1 Meaning of the statement of ' Parliament is sovereign” and various sources of
UK Law.
“The Parliament is sovereign”- We can hear this every time the Queen
announces the government’s programme for legislation - a certain fact that helped build
the UK ‘s constitution, therefor the Parliament became the supreme legal authority of
the UK, possessing the power to develop and erase any law, and no court can overrule
the Parliament’s decisions. There are only a few developments that affect the power of
the Sovereign Parliament: The Human Rights Act 1998; The UK’s entry to the EU in
1973 and the establishment of the Supreme Court in 2009. The act of parliament is also
known as the primary legislation that is passed by a parliament. It is a kind of law that
has been officially accepted by a parliament. It is the form of legislation that is passed
by both house of parliament that is the house of employee. It is a new law that is made
by the UK house of common and House of Lords which has to be signed by the Queen.
Business law helps to business enterprise in carry out its operation in secure manner.
When organisation follows each and every legislation and law regarding business,
employees, and customers then it becomes easy to conduct business operation in
secure manner. There are several sources of business law that have great significance
within business enterprise.

In common law legal system in the UK, decision making power is in the hand of
senior appellate. The decisions taken by senior authority have to be followed by every
law part and small court in the United Kingdom (Vachon, 2013). This is very important
source of law through which major decision can take by the senior authority and protect
the citizens and business activities
The legal obligations that are been followed consists of certain sources to derive
the legal obligation or laws such as:
English Legal system will consist of the judiciary or legal governing body that will look
after the proper development of certain laws and legal obligations. It includes the acts of
parliaments, precedents etc.
Statutory laws are developed by government bodies within parliament and implemented
by local and national authorities. Statutory law is another one of the most crucial part or
sources of law that comes from acts of the Parliament. In this section, legislature
delegate the power related to law making to the local bodies and authorities (Allen and
Kraakman, 2016). In the United Kingdom, statutory rights, council orders and bye laws
are included in the legislation and statuary law. With help of this legislation and law,
court can take the decision regarding matter and conflicts among parties. It additionally
includes article and areas and whatever the segment connected and article covers that
is required for every one of the general populations and business to take after such
while playing out their capacities and tasks and is likewise says that the specific
privileges of individuals are included which can't be controlled by anybody since they
are their basic rights.
Common law is the set of rules and regulations which in bides the standard code of
conduct within UK. They are required to be followed by all but statues can be made to
favour one section of society over another. Common law is a legal precedent made by
judges present in court, are laws codified as act of Parliament, the common law all the
time is changing. The British legal system is based on the common law, a law system
that was later adopted by other developing countries. This particular system is run by
judges that have more influence, and it’s based on a contradictory exchange of

evidence, arguments and witness declarations. In the Court of Law, both parties submit
their cases to a judge or jury, which then will assess the evidence related to the case
and apply the law accordingly. The decision made by the court can be appealed by
either party and then the case would be forwarded to a higher court. Court appeals in a
common law legal system may only review findings of the law, not the factual findings.
The Common Law Legal System clearly states that all citizens, no matter the social rank
or political role including the government as a whole are subject to the same set of laws,
and only the judiciary system may review the legislation, but only to check if it complies
with the constitutional standards.
Various personnel's works for the establishment and functioning of legal system such as
barristers who are the representative of a party that has pleaded in court of law for
justice, they place the opinion and fight the case of their concerning parties. Another
section is being handled by solicitors who are the legal advisor to a person or an
organisation helping them find out proper legal solution to their business problems.
Finally, judges are the supreme body which helps the plea or opinion of concerning
parties and after the deep and significant analysis on basis of legal consideration, pass
out their judgement or verdict.
Various Sources of Law
The international Court of justice referred to as the world court which is the primary
judicial branch of the United Nations. The international Court of Justice is constructed
by the Charter of the UN as the principle judicial organ of the United Nations and shall
be constituted and shall function in accordance with the provisions of present Statute.
The European court of Justice is the judicial institution of the European Union. This
means that it deals with disputes between parties as the courts do in Ireland. The ECJ
has the important function of ensuring that European Law is interpreted and applied in
the same way in every member state.
A barrister is a type of lawyer in common law jurisdictions. This group mostly specialise
in courtroom advocacy and litigation. Their responsibility is to take cases in superior

courts and tribunals, drafting legal pleadings, researching the philosophy, hypothesis
and history of law, giving expert legal opinions. Barrister are distinguished from
solicitors who have more direct access to clients and may do transactional types legal
work. A solicitor is a legal practitioner who traditionally deals with most of the legal
matters in some jurisdictions A solicitor must have legally defined qualifications which
vary from one legal power to another, to be represented as a solicitor and enabled to
practise there as such. There are many more solicitors than barristers in England and
they attempt the general aspects of giving legal advice and conducting legal
proceedings. A judge is the person in a court of law who decides how the law should
applied. Judge is a person in a court of law who decides how the law should be applied.
P2. Role of government in law making procedure
In the procedure of law making, government plays a very crucial role by which
several laws, legislation, regulation can have developed and imposed within the
country. The Government is to blame for most of the new laws and changes to the
existing laws as they are introduced to the public by the Queen yearly in October or
November, but new laws can also be created by MP’s and Lords. However, the Process
of creating new laws is not simple as a few steps have to be followed.
Before Laws are made public, they are known as BILLS. A Bill is a government’s idea
that has to be introduced to both the House of Lords and House of Commons. The MP’s
and Lords will the question the recently introduced bill, some supporting it and others
being against it. The bill will then be examined in detail and a committee of lords and
MP’s have the chance to modify by adding or removing lines and details of the bill. The
bill is then submitted to a vote and if most of the votes are against it, the Government
has to come up with a new idea until both houses agree with the new Law. When both
houses reach an agreement then the bill is presented to the Monarch, and only upon
the monarch’s approval the Law will be published. Various steps are being followed for
the development of a legal bill or an act within a parliament.
Drafting of bill by legal experts and the consolidators will identify a social or legal
problem and then will draft a bill for its appropriate solution. The first reading of

the bill is being carried out within the House of Commons where it is debated and
evaluated in order to make it more precise and effective. Changes are being
made on basis of outcomes of debate and discussion. Second reading is being
given after the alteration made by first reading. This will help in passing the bill in
house of commons. Third reading is being carried in upper house i.e. House of
Lords. Once the members of house are satisfied with the bill, it is being
forwarded for royal accent.
Royal Accents given to the bill by the Queen when the House of Lords and
House of Commons forward the bill to the Monarch after the third reading. Only
after Her Highness permission the Bill will be published as rule of law.
The statuary and common laws are being used to find out the proper solution to
the legal issues or cases that are been presented within court of law. These legal laws
will help in getting various operations and actions to find out the proper legal solution to
a problem.
These Bills generally apply for the whole of the UK, with some exceptions where the
Scottish Parliament, the Welsh Assembly or the Northern Ireland Assembly need to
alter or modify the Law but depending on the Law and the parties that it will affect, some
laws MUST respect the international laws and many EU laws.
(LO2) TASK 2
P3. A director is a person who owes his or her obligations to the establishment
for the welfare of all its associates as a whole but not only to the individual
shareholders. Although, in certain cases, he or she together owes duty towards other
people that include the employees and creditors with a special situation of insolvency. It
is hereby important to discourse upon the applicability of company’s act on the
undertaken business of JPM publishing. This law is basically applied to regulate the
company’s norms for its legal development and looks onto the selection of its name,
location, appointing directors and shareholders along with the process of registration,
etc. It is in accordance to part 41 of companies act 2006, the directors are responsible
to assess the house of index of both proposed and registered company’s name, before
choosing a unique brand name for their own company. It is hereby with a similar
concern of JPM, whose directors are hereby required to go through the restricted and

well as applied norms to select a new brand name of their company. This involves
uniqueness in name, ‘end with’ criteria to clearly specify its nature, like the use of
correct acronyms for the same, its word limit and relationship etc. In addition to this act,
there together exist various employment as well as contract laws and are as
demonstrated below.
With the help of employment act, JMP provide employee’s workplace safety and
security to personnel’s. For instance, if any employees get accident and injured at
workplace then with help of employee’s workplace safety act, personnel’s have right to
get remedies and expenses of treatments. (Law, Buhari’s and Kutanoglu, 2014).
With assistance of contract law, JMP can deal with other business unit regarding
product and services. If company purchase raw material, semi-finished goods and
services from supplier and other agencies then this law helps JMP in carry out their
agreement in safe and secure manner. In order to carry out various activities and
functions of business, contract law helps to organisation.
Health and safety regulations
Health and Safety Act- According to section 37 of Health and Safety Act, directors can
be prosecuted if an offence committed by the company or other body is proved to have
been committed with the consent or connivance of or to have been attributable to any
neglect on the part of any direct, manager, secretary or other similar officer of body
corporate.
Health and safety Display screen equipment regulation 1992- The health and safety
Display screen equipment regulation 1992 provide regular eyesight tests, provide health
and safety information and provide adjustable furniture and by appointing a professional
to supervise workplace health and safety rules. If someone suffers an injury at work or
he/she is ill, an organization should take following steps: Record the incidents/illness in
the accident book and report to the employer's occupational health service. Health and
safety problem can be resolved by discussing the issue with the managerial the
manager fails to resolve problem use employer's internal grievance procedure. If
someone suffer from disability or language problem then translator and disability
support worker required.

Equal opportunities regulations- With help of equal opportunity legislation, JPM
published small organisation in effective and appropriate manner under which they do
not discriminate with any employees and provide equal opportunity to everyone who
work in the company. This legislation can apply on the various functions like recruitment
and selection, promotion, performance appraisal etc. At the time of recruitment and
selection, promotion, performance appraisal organisation can maintain diversity among
workforce. This legislation will also help to maintain healthy working environment at
workplace and provide all facilities and opportunity to employees according to their
performance and efficiency.
Equal opportunities regulations, Equal pay act of 1963- This law protect men and
women who perform equal work in the same organization from sex-based wage
discrimination. Equal work means jobs compared equal skills, effort and responsibility
and perform under similar work condition.
Discrimination act- The most controversial and widely-reported discrimination case in
2011 was a racial vilification and discrimination complaint against the media
commentator Andrew Bolt, which was not related to employment. (By Mike Toten on 14
December 2011).
Age discrimination in employment act of 1967 law- It prohibits employment
discrimination against persons 40 years in U.S. Age discrimination prohibits
discrimination in hiring, promotions wages or firing. On the other hand, an example is
that Achim Beck, an investment banker, successfully sued his employer for sacking him
because the company wanted a "younger" person to do his job. The courts have yet to
decide what damages he should receive but it is understood it could be hundreds of
thousands of pounds, after an employment tribunal ruled he had been unfairly
dismissed and that his age had played a part. He was replaced by 38-year-old. Lawyers
said the ruling was significant and highlighted how age discrimination laws, introduced
just 3 years ago, were a "gravy train" for many disgruntled workers who had lost their
job (By Harry Wallop, Consumer Affairs Editor).

Disabilities act of 1990- This act provides wide range of civil rights protection for
individual with disabilities. The duties of director are to mandates those policies and
procedures which promotes equity within the organisation and reduces the
discrimination within the company. This act prohibits discrimination in all employment
practices, including training, hiring and firing.
The equality act 2010- This act prohibits discrimination in employment, it protects
following characteristics age, gender discrimination, marriage race, religion or belief.
Discrimination occurred in several ways like direct discrimination when an individual is
treated less favourable than other. Indirect discrimination, Discrimination by association
is direct discrimination against an individual. Harassment is defined as unwanted
conduct related to relevant protected characteristics which have purpose of violating
another person's dignity, Victimisation, positive action, genuine occupational
requirements and public-sector equality duty. In the case of Jane, Penny and Marie they
must have followed the equal opportunity regulation and legislation at the time of
operating their business. With help of equal opportunity regulation and legislation, they
can make their business more effective and maintain diversity within the organisation
(Appelbaum and et.al. 2016).
General Data Protection Regulation-
The General Data Protection Regulation (GDPR) requires business to protect
personal data and privacy of the citizens. It addresses the export of personal data
outside EU (European Union) and EEA (European economic area) areas. In the case of
JPM organisation, with help of data protection regulation and legislation, organisation
can keep secure and safe its information from rivals and competitor. With help of this
legislation, no one organisation can misuse the information of company. In addition to
this, this legislation also helps to the employees and customers in order to keep their
information safe (Oswald, 2014). The duties of director are to promote data protection
by amending policies and procedure to secure the personal information of employees in
safe place. As per this legislation, no one in the organisation have right to disclose any
employees and customer personal information. In the business of JPM, they should use

the legislation of data protection act so as they can keep secure and safe the
information of employees as well as customers.
Effective pursuance of these legal measures will help in improving the overall
performance of a business organisation this will help in enhancing the work environment
and thus will support the following of different legal obligations governing them. The
companies are required to follow certain legislations and legal obligation \s in order to
carry out their functionalities in an ethical manner.
A director must pursue the best interests of the stake holders of the company, in
good faith and to promote the objects of the organisation. A director should take
independent judgement to exercise his duties with due and reasonable care, skill and
diligence. The directors of JPM can easily overcome issues and problems by help of
health and safety regulations, equal opportunities regulations and general data
protections regulation. With help of company act 2013 director can set roles and
responsibilities of corporations and engage with registration procedure. For example, if
JPM organise another branch then manager must have to consider company law act
and legislation so as every department can segregate with their own responsibility.
TASK 3
P4. A). 1 Champion Ltd on whether the creditor has the legal power to do what
they threatening and the process for liquidation (LO3).
Company liquidation is the procedure of winding up the firm by selling off its free
assets to convert them into cash to pay the organisation's unsecured creditors. It is the
procedure that is initiated either by the shareholder or by creditors after the permission
of courts. Insolvent organisation has two kinds of company liquidation that is creditor
voluntary liquidation and compulsory liquidation. Creditor voluntary liquidation- It is the
procedure that is used to close an insolvent corporation (Wild, Wild and Han, 2014). An
insolvent corporation is most regularly identified as one that cannot pay its creditors as
while they are not able to make payment. It involves the dissolution of the insolvent
organisation and the redistribution of the organisation's assets to the creditors.
Compulsory liquidation- This liquidation refers to the fact the in by far the majority of

cases the creditors of the organisation force the corporation in to compulsory liquidation.
In this aspect procedure can instigated with a winding up petition and once it is heard at
court, it can become a winding up order.
Following are systematic procedure of liquidation; an insolvency practitioner is
appointed as a liquidator and the organisation’s assets are measured and stated in a
financial briefing. According to the briefing the creditors are being paid by the total
shareholder percentage priority and at the same time the surplus cash if there is any will
be distributed among the shareholders.
In this stage organisation is finally dissolved and struck off the registrar of
organisations.
As per the given case scenario, champion Ltd have given the cash payment to move
from its site in north London in order to establish new stadium by a premier club. After
moving, the organisation faced financial problem through which numbers of customers
declined (Tepee, 2016). The creditor is threatening to apply to the court for winding up
petition. In this case with help of creditor voluntary liquidation creditor can make a
successful winding up the application in the court. In this liquidation, Insolvent
Corporation is most regularly identified as one that cannot pay its creditors as while they
are not able to make payment. It involves the dissolution of the insolvent organisation
and the redistribution of the organisation's assets to the creditors. With help of creditor
voluntary liquidation, creditor can easily forward the procedure of the liquidation within
the court. A creditor voluntary procedure will help to London based company champion
Ltd in winding up petition. It is a procedure, instigated by an insolvent company by
which the assets of the insolvent company are sold and proceeds are distributed to
creditors of corporation. With help of CVL the director of organisation can get to choose
the insolvency practitioner whereas in a compulsory liquidation an official receiver is
appointed by creditor or the court.
2 Amber Ltd on the possibility of getting the injection
P5. As per the employment law it is fundamental for the organization to consider out
every one of the conditions previously rejecting or to fire the workers according to as per
the business get that e made before. The specific guidelines and directions are set up