BMP4002 Business Law: IOM Solutions and Business Reorganization Report

This report provides an analysis of business organizations, focusing on IOM Solutions and its potential reorganization from a sole trader to other structures like a limited company, partnership, or limited liability partnership. It explores the legal consequences associated with each type of business organization, including liabilities, financial reporting, and dissolution conditions. The report also offers a recommendation for IOM Solutions to consider converting to a limited liability company (LLC) for more effective management and decision-making, highlighting the benefits of a separate legal entity and limited liability. This document is available on Desklib, where students can find a variety of solved assignments and past papers.

Business Law
BMP4002

TABLE OF CONTENT
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
Types of business organisations........................................................................................................3
Recommendation...............................................................................................................................7
CONCLUSION....................................................................................................................................7
REFERENCES....................................................................................................................................8

INTRODUCTION
In today’s time There is a rapid change in all the global environment with the help of
commercial activities and the business that are being taken place in all the areas. Business is
generally an important undertaking which creates the essential goods in order to generate
profit and revenue. All the organisations used to abide the rules and regulations that are to be
followed in the enterprise. There is being seen that for managing a proper business all the
rights, liabilities and the duties are impliedly being applied as this is generally an expanded
ambit of legislation which provides different kinds of laws that are needed to be follows
which are like employment law, contract law, company law etc. in UK there is statutory and
common law which manages all the law-making power as the prior one deals with the
Parliament who have the supreme authorities and the common law exemplify the judicial
president in which the judges used to provide the laws through cases (Ordonez-Ponce,Clarke,
and Colbert, 2021). This report will cover and analyzation for IOM solution which deals
with fresh produce for all local takeaway and convenience store. There will be given the
business structure that sole trader can switch in order to organise the business effectively.
Further this report will also cover the legal consequences and recommendation for the
business organisation.
MAIN BODY
Types of business organisations
In order to initiate any business, it is important to manage the restructuring and the
reorganising of the industry or the company which is being enforced to scrutinise all the
effective legal solution with the general consequences that are applied for the business
practises. IOM solution as in need to re-organise the business have majorly different kinds of
variable options which are being provided for their future expansion. Some of the important
factors for the firm or the company are tax amount, personal liability, finance, administrative
work, management and accountability (Lamtiar, and et. al., 2021). As IOM solution is a sole
trader business is having different options for properly organisations which are given their
under:
Limited company
It is a privately owned company or business practice which considers to have
shareholders and directors used to manage the proper running of the company. The directors
are mainly the person who manages all the functions and effective practises. There is being
analysed that it is a separate legal body which provides to have general rights and obligations.

Company considers to articulate all the financial activities with the personal affairs of the
owner. It is being seen that all the profit holdings and generations of the revenue through the
industries are managed through the payment by corporation tax. The profits are shared and
distributed through dividends and different shareholders. It also limits guarantees which are
shared by them, all the further requirements and reporting and the registration is managed
through company’s house by HMRC.
There are two types of limited company where Limited shares are being provided to
the shareholders along with it the financial liabilities which provides all the amount managed
and raised in order to maintain the payment for shares. This also guarantee all the sharing
capital which are not being existed with the areas of guarantors.
Legal consequence:
 Limited companies make all the liabilities to be appealed by the limited partners other
than this there is being seen that directors will there by being responsible for the
company’s debts and the repayments.
 This is mainly a complex and an expensive process which involves all the private
company to be converted into public limited with the help of lawyers and specialist
who are having the expertise knowledge with the legal information about the
firm(Kiss, 2020).
 The article of association and the memorandum of association are framed for
managing the registration for company’s house and also manage all the directors to
implicate in a systematic manner which will not have any hardship that are being
faced.
 This usually provides benefits with the advancement to all the corporation in case
where shareholders are not receiving any kind of relief as in relation to the loss the
admin suffered. There is also being seen that the tax deduction in other Low report
income from loss can be seen in the business functions(Pritchard, 2020).
 LLC used to have written agreement through which all the regulations are being
applied in it.
 The main focus of LLC is to protect their owners and also to maximise their identities
so they will not be held liable or responsible for all the debts which are being taken
for the benefit of the company.
 It regulates and applies the units in which no person will be completely liable for all
the loss which is being suffered by the company as they merely provides the insurance
with protection by applying norms and laws with all the general rules in abidance.

 LLC manage corporate structure through which all the principles and the general law
are framed so as to manage the shareholding and all the profit and loss are being
served to manage the working procedure.
Partnership
This is generally in organisation where two or more members agrees in order to share
loss and profit which is being made while holding a same business. Partners are generally
involved in all the risk sharing, benefits, cost sharing and other liabilities and responsibilities
which are being managed in business practises. They are an incorporated entity in which all
the mutual engagement are being made between the partners who are self-employed(Chi,
2020). This can be negligence, misconduct or any other issue which is being analysed in the
firm will amount to make all the partners equally liable. And for all the partnership firm it is
important to make the partnership agreement and proper registration through HMRC the legal
formation in company. There are being several consequences for all the written partnership
agreements which are made in non-clarity and general responsibilities for profit and loss. All
such agreements are being made with confidence and trust and they usually manage the
safeguarding tool so as to protect their investment and a partnership business.
Legal consequence
 Partnership firms generally have sleeping partners and they also have certain part-
time partners which mainly helps out in the working process whenever there is being
seen in need a requirement. They also contribute for all the working capital and on
respect of that they expect to gain more profit and shares even having the minimum
responsibilities for managing and functioning of the firm. It mainly creates a conflict
and also the confusion between the partners and can also result to a dissolution
reason. As many of them have the issue about their equal shares even having the
minimum responsibilities up taken(Unver, and et. al., 2020).
 Another legal consequence is that one of the partners if it is being involved in any of
the actions, negligence or any kind of misconduct that is being taken in the
organisation then all the other partners will be held liable for the act. This also
promotes unlimited along with the personal liabilities to the partners for the acts and
the conduct made by the others.
 In case when any of the partner dies, there is being a dissolution of the firm and this
will also create a major effect as through the general liabilities and all the assets are to
be given by all the other partners. As partnership business practice is reluctantly

dependent on all of the members and this will automatically dissolve in case of the
death of any of the partner as they will have to provide a notice for the dissolution
about their inability to continue the working in the firm. In so many cases the partners
usually willing to manage the business but due to the strict rules were being
abandoned by such(Bryce ,2020).
 As in section 26 of partnership act there is been given that when a dissolution is being
taken place between the partners through the notice which is being served by them
will create an immediate effect and will also restrain the working procedures.
Through this it can be simplified that a single notice served by partner for the
dissolution of firm or their willingness to leave the company will reflect or make the
firm dissolved. This show the legal consequences that the partners are mainly
dependent on each other and even after being willing to continue the work and also by
sharing the partners interest and investment for not being attained to continue as
through particular clause in partnership.
Limited liability Partners
All such kind of partnership are different as they cover liabilities between two
partners. In all such Ltd liability partners the investment is mainly being made on a particular
extent by the individuals in the organisation(Wahyudin, 2021). For opening LLP There is
required to have a proper registration by HMRC and company’s house. The partnerships are
generally being made by two or more individuals and all the agreements are framed through
LLP as they used to share the profit along with the responsibilities in between the partners
through which they manage the submission of tax return and all their personal self-
assessment and investment on yearly basis. There is being also required that the firm will
have to pay income tax for the profit which is being earned and shared. LLP is considered to
be a pain national insurance for all the HMRC.
Legal consequence
 LLP generally considers to share all the profit which is managed and earned by them
in order to retain it as for the company which usually have limited shares. This
provides that their distribution of the profit earning is generally being made without
any flexibility as they maintain the future here taxation and the profit generation
within them.
 All the financial accounts had been publicly disclosed in order to manage a systematic
working. Other than this all documents is needed to be submitted by the partners in

the public companies house for giving the public record. It creates a transparency in
public and also make them to trust on LLP regarding income which is usually being
on by the partners.
 All the members and the partners in LLPR mainly the agent which are being
appointed through contract being signed on behalf of members of LLP and they also
associate to create and manage the compliances under general duty is being abided.
 LLP usually dissolves in case if partner leaves the firm and in all the areas where the
partnership enterprise wishes to leave in all such cases the partners even having the
willingness to continue the business practice will have to resolve the firm.
Recommendation
IOM solutions are generally a sole trader Company and it is managed by the single
owner who are there by being responsible for all the basic rights and the responsibilities for
the effective management of business practices. There is being analysed that they used to
have sold responsibilities for all the decision making and the general affairs regarding the
business practises they pertains to have decision making process on their own. As in now I
OM solution is focusing to re-organise all their effective business structure by making a
conversion of sole trader business into any other different kind of business practice for
managing and expanding the operations (Ang, and Kwek, 2020). It can be recommended that
they can re-organise an effective sole trader business to be converted into a limited liability
company through which their form will be managed in a systematic manner. LLC usually
have different meanings for all the limited liability owners and they distribute their decision
making for powers with a proper effective management. It has the separate legal entity
without any perpetual liabilities carried on them. All the debts in the loss are being managed
by them. All these business structure provides the management of finance which is being
growth by raising the funds and also by comparing through sole trader business. It will also
create expansion and reorganisation of the business by change it into LLC.
CONCLUSION
It is concluded from this report that there are mainly different kinds of business and
organisations which are being framed in UK. Limited company, partnership, Ltd liability
partnership, sole traders and many more are being seen under it. There is being provided that
incorporation of all such business is the really different in their legal consequences, procedure

which is being followed and the structures. The partnership considered to have legal
consequences as in case when any of the person die the other partner will have to dissolve the
firm even after their willingness to make it functionable. Limited liability partnership
manages the public disclosure about all the profit, accounts and the incomes. Furthermore,
there is also analyse that company is a complex and expensive process as they have to follow
the registration and all the MOA and AOA clauses. For IOM solution it can be recommended
that they can be could re-organise their business into a limited company by managing
effective funding and also by further expansion in the business.
REFERENCES
Ang, A. and Kwek, S., 2020. Regulation of Crowdfunding in Singapore. Business Law
International, 21(1).
Bryce, G., 2020. The remarkable history of the Hudson's Bay Company. BoD–Books on
Demand.
Chi, Z., 2020. The Political Economy of China’s Business Organisation Laws and its
Implications for Legal Transplantation: Evidence from the Venture Capital
Industry. Australian Journal of Asian Law, 21(1).
Kiss, L.B., 2020. The Importance of Business Partnership on the World Wide Web.
Lamtiar, S., and et. al., 2021. Liquidity Effect, Profitability Leverage to Company Value: A
Case Study Indonesia. European Journal of Molecular & Clinical Medicine, 7(11),
pp.2800-2822.
Ordonez-Ponce, E., Clarke, A.C. and Colbert, B.A., 2021. Collaborative sustainable business
models: Understanding organizations partnering for community
sustainability. Business & Society, 60(5), pp.1174-1215.
Pritchard, L., 2020. Running a successful photography business. Routledge.
Unver, B., and et. al., 2020. A decision support system for proactive failure prevention: a case
in a leading automotive company. Journal of Enterprise Information Management.
Wahyudin, A., 2021, September. The Development and Effectiveness of Business Strategy
Model with A Partnership Approach for Growing Entrepreneurship. In 5th Global
Conference on Business, Management and Entrepreneurship (GCBME 2020) (pp.
721-726). Atlantis Press.