Company Law Report: Legal Framework for Prometheus Company (UK)

This report provides an overview of UK company law, specifically examining the legal framework applicable to Prometheus. It delves into key aspects of the Companies Act 2006, outlining the requirements for company registration, directors' duties, and the need for articles of association. The report also explores the applicability of contract law, emphasizing the importance of written agreements and the consequences of breach of contract. Furthermore, it analyzes employment law, including the Employment Rights Act 1996, highlighting regulations regarding wages, working hours, and health and safety. The conclusion emphasizes the importance of adhering to these laws for the smooth operation and goal achievement of Prometheus. References include key legal resources and acts related to the subject matter.

Running head: COMPANY LAW
COMPANY LAW
Name of the Student:
Name of the University:
Author Note:

1COMPANY LAW
Introduction:
Company law is the law that controls and governs the rights, duties, relations and conduct
of persons, companies, organizations, enterprises and businesses. Such law deals with the
creation, capitalization, governance and control and finally death of the company in the form of
winding up or others.
Contract law is a legally enforceable agreement between two or more parties that
provides the rights and duties of the parties towards one another. It also provides for the remedy
when there is a breach of such contract.
Employment law is the set of laws, rules and regulations that control the relation between
employers and employees. It also provides for the rights and responsibilities of the employer and
employees towards each other.

2COMPANY LAW
Discussion:
The Companies Act 2006 is the Act of the Parliament of United Kingdom which is the
main source of UK Company law.
According to section 86 of the Act, Prometheus has to be registered. It must have a
registered office where all the communications and notices have to be addressed.

3COMPANY LAW
There must be at least one director who is a natural person and above 16 years of age
generally. Being the director, one has to participate in board meetings to help the board to arrive
at a decision. Moreover the directors must ensure that the obligations are to be fulfilled
(ANDREW 2016). They manage the daily affairs of the company. The company must keep a
register of its directors and such register must be made available for inspection. The register must
contain the necessary particulars of the directors.
One or more auditors of the company can be appointed by the director or by the members
of the company. He has the duty to check the accounts and do the accounting records along with
making a report for the members.
There must be articles of association providing regulations to be followed. Such articles
of association registered by a company must be a single document and can be segregated into
paragraphs and proper numbering is to be done accordingly.
The resolutions are passed by both the members and directors of the company. Such
resolution, which is either ordinary or special, can be passed at meetings or by written resolution.
Meetings must be held in the company; there are two types of meetings namely board meeting of
directors and general meeting of the shareholders or guarantors.

4COMPANY LAW
Contract law is also applicable to Prometheus. Every contract made by the company must
be in writing, providing the terms and conditions of such contract. The writing is contained in an
agreement that has to be legally enforceable. If the company fails to follow the terms and
conditions of the agreement, there will be breach of the contract. As a result of which, the
company can be sued and damages has to be made for it. If there is a breach of contract, the
reputation of the company is at stake.
The company must follow the Employment Rights Act 1996, which was passed by the
UK Government to codify the law on individual rights in UK labor law. Payment of wages has to
be made according to the working hours of the employees. Deduction can be made for working

5COMPANY LAW
fewer hours than stipulated or for not working. Working hours has to be fixed and additional
payment is to be made for extra hours.
Health and safety must be ensured to avoid any accident or mishap. Health and Safety
(Consultation with Employees) Regulations 1996 must be followed to ensure this provision. The
employees must be given proper and safe environment to work.
Conclusion:
Prometheus must follow the provisions of the Companies Act 2006, the UK Company
law, Employment Rights Act 1996 and the Health and Safety (Consultation with Employees)
Regulations 1996 for the smooth functioning of the company and for achieving its goals.

6COMPANY LAW
References:
ANDREW. KEAY, L.L.B., 2016. DIRECTORS'DUTIES. JORDAN Publishing Limited
Employment Rights Act 1996
Google.com. (2019). contract law - Google Search. [online] Available at:
https://www.google.com/search?
q=contract+law&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjj9p3e7rXhAhWT7HMBHasZ
A6MQ_AUIECgD&biw=1366&bih=576#imgrc=yncmrH6gApuR4M: [Accessed 4 Apr. 2019]
Health and Safety (Consultation with Employees) Regulations 1996
The Companies Act 2006