Exploring Business Law in the UK: Formation, Management, and Solutions

This report provides an overview of business law in the UK, focusing on the formation of businesses (partnerships, private and public limited companies), management practices, and funding methods available to businesses. It delves into various legal solutions for dispute resolution, including mediation, arbitration, and counselling, outlining the advantages and disadvantages of each approach. The report concludes by emphasizing the importance of business law in guiding industry practices and ensuring compliance, referencing academic sources to support its analysis of business formation steps, management strategies, and funding options like bank loans. This comprehensive overview aims to provide insights into the legal and practical aspects of running a business in the UK.

UNIT 7 BUSINESS LAW

TABLE OF CONTENT
 INTRODUCTION
 BUSINESS IS FORMATION IN THE UK
 BUSINESS MANAGING AND FUNDING METHODS
 DIFFERENT LEGAL SOLUTIONS
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business law is concerned with the body of legislation which is associated with controlling and managing
organizational practices.
 In the current era, it has become essential to comply with imposed laws so that competitiveness in the sector can
be derived.
 The current report is based on OMPEG is a voluntary organization that provide an insight into the UK legal
system.
 The current report will highlight how business is formed in UK and way of managing business, funding along
with example.
 It w ill comprise different legal solutions along with advantages and disadvantages.

BUSINESS IS FORMATION IN THE UK
 In the UK the partnership organization can be formed by applying
the relevant course of actions like choosing a name and nominate
the partner.
 Registering with HR revenue and customs for having responsible
partnership tax returns and keeping business records.
 For having limited and unlimited kinds of partnership there are few
alterations which required to be followed for having smooth
functioning.

Continued..
 For the private limited company that is operating by shares and guarantee.
 The steps include choosing name, directors & a company secretary, deciding
shareholders and guarantors, preparing documents agreeing how company will run,
checking record and registering company.
 In the limited by shares the steps that are need to ensure that it is legally separate from
people who run operational practices, having share & shareholders and keeping profit
after paying tax.
 For forming public limited company in UK it is required to have at least two
shareholders, having issued share to public valuing at least of 50000, possessing two
directors much must be aged of at least 16 years and having qualified company secretary.

BUSINESS MANAGING AND FUNDING
METHODS
 In the UK there are number of practices that are need to be managed by the companies for having
smooth functioning so that competitiveness can be derived.
 The current circumstances of the industries are affecting largely due to complex nature.
 It becomes essential for enterprise to have depth insights regarding how to manage and funded
business practices so that ability to coordinate with changing circumstances can be derived.
 There are several areas that need to be managed by the businesses operating in UK so that higher
competitiveness can be achieved (Avila and Tian, 2018)

Continued..
Effective business
Delegated roles and
responsibilities in effectual
manner culture
Effective communication
channel
Time management Having proper formulation
of policy

Continued..
Grants Loans Personal finances Friends & family
Crowdfunding Banks and investors Venture Capitalist,
etc.

DIFFERENT LEGAL SOLUTIONS
 Mediation
It is the one of the legal solution which is concerned with the process in which impartial third party assist
the disputing parties in order to overcome the prevailing conflict through applying relevant communication &
negotiating option.
Advantages Disadvantages
• Voluntary process provides private and confidential
solutions (What is Mediation? 2021).
• It has limited scope to resolve the prevailing
conflict.
• It can be obtained on both basis timely and
convenient manner.
• It is not widely choose by the disputed parties.
• High rate of compliance can be achieved to have
ability to preserve ongoing relationships.
• The agreement is considered to be legally binding
process.

Continued..
 Arbitration is the one of the option to resolve the dispute outside the judiciary court. The decision taken
through the process is legally binding on the both the side
Pros Cons
• It is considered to be more flexible than legislation
in resolving issue. In addition to this, it can be
considered to provide higher effective justice with
maintaining quality.
• There is lack of transparency and formal discovery
which does not make it relevant option (Hasenclever,
2020).
• It is less time-consuming than the other option and is
less expensive procedure that motivates people to use
this particular method.
• It does not maintain the confidentiality which does
not help to resolve issue in effective manner.

Continued..
Counselling
It refers to the providing instructions and suggestion by professional through analysing the psychological
traits so that specific method resolving the issue can be identified.
Merits Demerits
 It allows to have tow way communication procedure
so that proper understanding regarding prevailing
issue can be obtained.
 It might adversely affect the decision-making ability
of the individual which is one of the biggest
disadvantage of counseling.
 It provides assistance to overcome anxiety occurring
due to the current issue in turn higher positive
outcome can be derived,.
 Loss of trust due to limited privacy so that clashes
between personality may result in non-solving of
issues.

CONCLUSION
 From the above report it can be concluded that business law helps in having relevant steps to proceed
industry.
 The current report has given emphasis on providing steps of how business are formulated such as
partnership, private and public limited.
 It has involved information regarding methods to manage the business and funding options like bank
loan, etc. advantages and disadvantages of mediation, arbitration and counseling.

REFERENCES
Books and Journals
 Alam, M., and et.al., 2020. Funding sources and performance management systems: an empirical study. Journal of Accounting & Organizational Change.
 Avila, Z. and Tian, G., 2018. Good practices in using partnerships for the delivery of employment services in China (No. 994983593202676). International Labour Organization.
 Chortok, Y., Yevdokymova, A. and Serpeninova, Y., 2018. Formation of the mechanism of corporate social and environmental responsibility of the trading company. Journal of
Environmental Management & Tourism. 9(5 (29)) pp.1011-1018.
 Hasenclever, C., 2020. Total loss-absorbing capacity and minimum requirement for own funds and eligible liabilities: Impact of bail-in rules on balance sheet management and
funding. Journal of Risk Management in Financial Institutions13(1), pp.81-96.
 Mansuy, J. and Ferrando, T., 2017. Food Waste at Time of Food Poverty: Are the EU and Its Member States Providing Sustainable Legal Solutions?. Available at SSRN
2959297.
 Pawnuk, M., and et.al., 2020. Prevention and Reduction of Odour Nuisance in Waste Management in the Context of the Current Legal and Technological Solutions. Journal of
Ecological Engineering. 21(7).
Online
 What is Mediation?. 2021. [Online]. Available through: <https://blog.ipleaders.in/mediation-in-india-process/>.