Legal Issues in Business Organizations, Tourism and Events: Analysis

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This report delves into the legal intricacies impacting business organizations, with a specific focus on tourism and events. It explores the influence of company law, employment law, and contract law on business operations, providing a comprehensive overview of their implications. The report examines the Companies Act 2006, highlighting the codification of directors' duties and its impact on shareholder and employee relations. It also analyzes employment law, including acts such as the National Minimum Wage Act 2000 and the Health and Safety at Work Act 1974, emphasizing employee rights and workplace safety. Furthermore, the report investigates contract law, outlining the elements of a valid contract and the consequences of breach of contract. Through examples and case studies, the report illustrates the practical application of these legal principles, offering valuable insights into managing legal risks and ensuring compliance within business organizations.
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Legal Issues in Business
Organizations Tourism and
Events Organizations
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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
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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
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under section 170(4) explains about general duties that can be interrelated and applied with
common law principles. As per the provisions evident directors duties is been explained. The act
has brought changes by introducing various kinds of duties based upon common law and
equitable principles. Earlier there was no law over directors but the act has brought laws for
making change within all aspects related to organizations working. Also the act has been proving
various kinds of processes involved within business which makes shareholders and employees
act as per rules and regulations prescribed within the act. Various key points of the act are in this
duties of the directors has been clarified for first time. Under it all kind of responsibilities over
directors is been formed in relation of shareholders, employees, and the environment. Acts
provide with eclectic medium which makes desire of shareholders communicated in more
effective manner. The office of company secretary is now an optional one, although can continue
to use a secretary if needed. In this limited company can be formed with two directors in place.
Now directors has been providing with service address that makes residential address separated
from companies address. This is required to be provided at the time of incorporation with all
other details. The new Article of association new model has been used which makes
incorporation of company possible. All the organization covered under the act Article of
Association and Memorandum of Association when forming a company. Naming rule of
company has been operated using various kinds of circumstances within which a business is been
registered by the same only till the time business has been existing with same group. Filing dates
over delivery of an organization accounts is been reduced from10 to 9 months for all limited
companies. Also in the act an organization companies can no longer hold Annual General
Meeting (AGM) until decided by them to do so but makes shareholders involved in making
decision. In this share capital has been simplified over making more relevancy which make
companies run in more effective manner. Nominees shareholders has been given various powers
and includes right to receive companies information electronically or through internet. The act
has been proven to be boon for an organization in hotel industry (Luu, 2017). It has helped in
making management done in more effective manner which has helped in developing growth and
stability within an organization. In order to justify this an example has been given that is BN Pvt
Ltd over raising funds through crowds but did not used it for same purpose. Since it was
mentioned within the prospectus and has not been fulfilled. So, the organization can be sue for
this. Employment law: The law is formed over developing relationship between employer and
employee. Under such law rights of employee is been protected within an organization and
makes working environment improved. These laws are known as labor laws and deals over
various points related to rights of trade union also. Under it various acts is been covered which
are Employment Act, 2002, Equality Act, 2010 and Employees Right act 1996 they work over
making employee feel less exploited. In this various kinds of improvement is brought with the
employee. Various laws related to the laws are National Minimum Wage Act 2000 the act has
been making employees which is decided over rights relating upon taking wages which has been
discussed at the time of signing of employment contract. In the different kinds of aspects is been
covered upon the amount of wages which is require to be protected over making discussion
possible. In this payment is done on the basis of kind of employment that an person is having
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which can be temporary, permanent or contractual base. In this calculation of wages is don upon
obligation that has been made over the act. In this act is specified about various methods of
payments which is hourly, monthly and contractual basis. This helps in making wages process
smooth within an organization. Health and Safety at Work Act 1974 the act has been helping
in developing health and safety over regulations within workplace. Further it aims over
managing of safety and health within workplace. The act has been developed only with the
objective of maintaining health of employees and provides them with better conditions in proper
manner. Also the acts are focused over making employees provide with health facilities within
an organization. This law has brought revolution within working of employment which provided
then in getting better conditions within the organization they are working. This can be
understood with the help of example that is Ana is an employee working within VCD ltd and has
been working there for six years but suddenly she has been deprived form her salary to be given.
In this case organization can be suid within the Minimum Wages Act 2000. So that proper justice
can be served to Ana in the form of compensation. Also these laws has promoted various kinds
of transparency within relationship of employer and employee by providing them motive to work
within an organization with more efficiency (Pikkemaat, Peters and Chan, 2018). Contract law:
These laws have been formed upon forming of agreement within parties and carries business in
more effective manner. Also contract is been formed through agreement in more effective
manner and transactions related to it. Further laws have been formed over the agreements which
are related to two parties and promise made within them. They are legally binding contracts and
is not required to be in written and unwritten form. Also in this rights and duties is been
protected through laws. An agreement is been considered as laws which makes formation of
contract possible. Also contracts law forms various kinds of framework which leads over making
contract gain more legality. Contract is simple which makes agreement formed in simplest
manner possible. In this contract can be in written and unwritten form. This makes promise to be
contract. There are various conditions over forming contract these conditions are based upon the
element that is been used for forming contract. Such elements are offer, acceptance, obligation,
legality and validity all elements make agreement turned into contract. Offer an idea is been
presented to parties by one party and no discussion is done about it. Acceptance in this idea is
been discussed by the parties willing to come into contract and acceptance is gained over the
contract. Obligation they are based upon rule with regulation which are to be followed by both
parties till the time contract is been dismissed or over. Under its various kinds of aspects covered
is been discussed which makes an contract strong. Then comes validity that is been discussed
over all kinds of obligation formed within the parties and validation is required for making
contract to be more valid within the eyes of law Legality this is based upon seeing that weather
all kinds of contract has been formed in legal manner or not. Also in this legality of the contract
is been discussed which provides validity within the contract. This element makes validity
attained through covering all aspects of contract. In order to justify it an example is explained
which is RTY Ltd has formed a contract with CVB LTD over forming contract over supply of
cement but fails to pay money mentioned within the contract. Now contract has been is been
revoked. In the law breach of contract occurs which is handled with the help of remedies formed
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which are damages, specific performance and injunction. It has helped in making business
transaction don in smooth manner(Walzel, Robertson and Anagnostopoulos, 2018).
CONCLUSION
From the above discussion it can be concluded that business organization are those
organization formed for performing of business transactions in more effective manner. Also this
organization makes all kinds of trade relations developed in more organized way. In the essay
things that is covered is based upon contract, employment and company law. These laws are
important in order to make an organization work in more effective manner. All the laws has
helped in improving various kinds of trade related issues with efficiency.
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REFRENCES
Books and Journals
Domínguez Vila, T., Alén González, E. and Darcy, S., 2020. Website accessibility in the tourism
industry: an analysis of official national tourism organization websites around the world.
Disability and rehabilitation, 40(24), pp.2895-2906.
Getz, D., 2017. Developing a framework for sustainable event cities. Event Management, 21(5),
pp.575-591.
González-Rodríguez, M.R and et. al. 2020. Hotels’ corporate social responsibility practices,
organizational culture, firm reputation, and performance. Journal of Sustainable Tourism,
27(3), pp.398-419.
Joppe, M., 2017. Tourism policy and governance: Quo vadis?. Tourism management
perspectives, 25, pp.201-204.
Law, R., 2021. Evaluation of hotel websites: Progress and future developments (invited paper for
‘luminaries’ special issue of International Journal of Hospitality Management).
International Journal of Hospitality Management, 76, pp.2-9.
Loonam, J and et. al. , 2020. Towards digital transformation: Lessons learned from traditional
organizations. Strategic Change, 27(2), pp.101-109.
Lu, Y., Chen, Z. and Law, R., 2016. Mapping the progress of social media research in hospitality
and tourism management from 2004 to 2014. Journal of Travel & Tourism Marketing,
35(2), pp.102-118.
Luu, T.T., 2021. CSR and organizational citizenship behavior for the environment in hotel
industry. International Journal of Contemporary Hospitality Management.
Pikkemaat, B., Peters, M. and Chan, C.S., 20187. Needs, drivers and barriers of innovation: The
case of an alpine community-model destination. Tourism management perspectives, 25,
pp.53-63.
Walzel, S., Robertson, J. and Anagnostopoulos, C., 2020. Corporate social responsibility in
professional team sports organizations: An integrative review. Journal of Sport
Management, 32(6), pp.511-530.
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