BMP4002 Business Law: Report on UK Legal Context for Organizations

This report provides an overview of the legal context for business organizations in the UK, focusing on key sources of law and different legal structures such as sole proprietorships, general partnerships, limited liability partnerships, and limited liability companies. It discusses the Companies Act 2006 and the Partnership Act of 1890, emphasizing the importance of adhering to employment law and understanding vicarious liabilities. The report also explores the roles and responsibilities of company directors and the significance of the Memorandum of Association (MOA) and Articles of Association (AOA). Furthermore, it offers recommendations for IOM Solutions, suggesting that a limited liability company structure would be beneficial for their expansion plans due to its advantages in sharing responsibilities, retaining profitability, attracting investors, and offering tax planning efficiency. The report concludes that proper business management and adherence to business law are crucial for the successful and sustainable operation of businesses in the UK.

Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organisations in the UK

Table of Contents
INTRODUCTION ..........................................................................................................................3
Business and Organizations in UK..................................................................................................3
The legal business structure of UK companies................................................................................5
Sole trader:..................................................................................................................................5
General partnership:....................................................................................................................5
Limited Liability Partnership:.....................................................................................................6
Limited Liability Company:........................................................................................................6
Recommendations for IOM Solutions:............................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A business is the type of separate legal entity which is being established with the aim of
having huge revenue and profitability by making sell and purchase of given goods in the target
market. They are working in the competitive market so that they can work with the right
approach and sustain in the market for long period of time(Sikorska-Lewandowska, 2021).
Market is the place where the buyer and customer come together in order to make the transaction
among themselves so that they can sustain in the market for long period of time and ensures the
huge growth in every industry. This also leads the people to facilitating the exchange of trade
and money in the large market among the people. Emerging entrepreneurs see starts-up business
as the opportunity so that they can make rise in the living standards f the people . As the owner
open up business as per the investment and capital which are available with them that also makes
them decide on the size and the type of venture and its structure that can be small, medium and
large organisation. Moreover, business law thus helps in analysing the various legal business
structure that are available in the United Kingdom. This also helps in giving information related
to the various business structure and their benefits and drawbacks. Further the recommendations
to Sam for the appropriate type of business expansion of IMO Solutions.
Business and Organizations in UK
In United Kingdom, there are business task and its management are being carried out as
per the Companies Act, 2006. this basically provides the provision of the effective functioning of
the venture and leads to have the better operations, A business cannot run without its employees
as they are the main assets of the company who helps in carrying out the business in an
appropriate manner(Małozięć, 2020). Hence, the behaviour and their conduct must be in
accordance to the employment law so that all the actions can be moved in ethical manner. But as
of the organisation is being abide by the law of company so that they can remain out of the sights
of the liability which is incurred due to the fulfilment of the obligations. Such businesses given
the identify to the professional obligation so that they can rightly give the identity to the
business. This also provides the distinct legal identities that has various components within it.
These includes the perpetual existence, separate or distinct properties and a common stamp or
the seal which is given to the business and the right responsibility is given to someone or getting
sued if they do not follow the same and no complying with the laws that is given to the

professional misconduct. At the time of formation, it is the business which is inclusive with the
various agreement and giving by name so that it can be started. These are the various aspects,
head and calluses that are differentiated them from the each other on the purchase and the sale of
goods.
With the unprofessional approaches of the employees, lack of business in operating its
functionality, this can leads to have various operations. This is one such liabilities which is arises
in the business is Vicarious liabilities that arises among the business who operate their business
operations in an appropriate manner. This is the case of occurring when the employees act or
behaves dishonesty and leads to have the wrongful act while they are the part of the company as
its loyal employees, then the respective liability arises on the employer as they are liable and
accountable for their employees actions and hence, they must act within the given time frame so
that they can avoid any major issues. A business also suffer the given problems in context to the
negligent behaviour of the team members or the employees as they are carrying out their
responsibilities and roles. The director is the person who is given the certain job position of the
company's head by which they are having certain roles that are assigned by their post which they
need to conduct with the honesty and the carefulness so that they can assure the better working
and the fair operations in the business. When the duties of the employees are not performed well.
Director is the person who give the position of the organisational head by which they can have
the certain roles so that they can complete the given task. The directors of the company is
expecting effective working with the authority and also ensures the proper decisions are being
taken on the behalf of the company(Coe and Brown, 2019). This is become the duty that no such
conflicts is being arises among the company and its employees, if the directors is fail in to do so,
it impacting the overall working of the company, they also impact the overall working so that
they can rightly ensures the better working of the company when all the protocols are being
followed by the company. The director might ask to given the remedy to solve the particular
issues and also paying compensatory damage. The contract can also be terminated if the serious
cause is being occurred and they can also disqualify their directions and take them to the courts
for the some serious malpractices. Possession of the company's property with the direct which
also can take them after end of the contract.
The Partnership Act of 1890 govern the agreement of partnership by providing provisions
and the better management of the business can happen with the help of Memorandum of

Association (MOA) and Articles of Association (AOA). MOA is the statement that helps in
managing all the task of the company within the time limit as it get implement after its get
signed by the shareholders. On other hand, AOA is the written documents that defines the rules
and regulation of the organisation that should be abided by them while conducting the overall
working of the company.
The legal business structure of UK companies
Sole trader is regarded as the sole proprietorship in the given business in relation to the
IMO solutions in which all the business is being functioned by the company it self. He has been
working in it for 8 years and in 2 years they have grown its business. Sole trading huge
profitability to the business and being a single manager, he has to take the consideration of all the
looses and profits so that they can ensures huge profitability and revenue. Moreover, the Sam is
planning to expand its business and looking for the business structure which will be perfect for
them and there are various legal business structure which are given below:
Sole trader:
This is the self employment in which entire business is being operated by the individual
person and this structure offers the benefits with the establishment that is cost friendly. Hence, it
easy for the individual to operate its business and it is popular form of business among the young
and emerging entrepreneurs who leads to establish the business on the small scale. They do so
due to the availability of the low capital and the funds with them. This basically preferred by the
single person who wants to manage its business by its own by starting their own business in the
form of small start ups. The main decisions are being taken without any interference of the
judgements. As the ownership gives the various type that attract the new business people. It is
also related to the demerits with context to the debts, looses and liabilities in which the sole
person have to bear all the looses and taxes by their own.
General partnership:
It is the type of partnership in which the two or more people who get involves as the
general partners with the agreement of the partnership. These partners carry out the business by
sharing all the rules and responsibilities(Peters and Mathias, 2018). All the profits is being shared
on the agreed based among the partners and they all will bear the cost of establishment, the
financial risk and the debts and the benefits which is being incurred in the business. They are get

the unlimited liabilities for all the partners but it is more reliable them a sole trades due to the
easy investment in the business. Also with the various skills and experience of the partners, they
have created the decisions making by which they can enhance their productivity an profitability.
Limited Liability Partnership:
It is the partnership which offer the less number of liabilities comparison to the general
partnership. This is the different in consideration to the creation of obligation where, there is the
limitation on the amount of money which is being spent by the partners of the venture. Business
is incorporated by th two or more partners who are liable to pay all the profits and looses but
they do not have the joint venture or the joint liabilities. But the partnership is being registered in
an office that must be as per the rules of the government and their rules. As the limited
Partnership Act, 1907 governs, an LLP by getting the interest of the partners. This is having the
written agreement which help in effective functioning of the business.
Limited Liability Company:
It is the private limited company who is being managed by the companies act 2006 that
gives the details of the limited liabilities and lay down the provision determining how an
organisation is being operated that is requiring the private company and how the company is
being dissolves. This is being made on the legal obligation with context to the rights and the
duties of the member and the head of the company who is well aware by the constitution of the
company(Butturini, 2020). Directors is usually the head of the business who operates its
functions. The company is being owned by its shareholders. This has the distinct corporate
identity.
Recommendations for IOM Solutions:
When the organisation grows then it requires the timely expansion by which they they
can take the benefit to grow its business in the market. This also helps the business to use and
operate their business in dynamic circumstances. Hence, Sam must choose the limited liability
company for the expansion for the business of IMO Solutions. The legal structure offers the
range of the benefits which also helps to share the responsibilities of the manager with various
individuals. This also assist in retaining the huge profitability. This basically offers the efficiency
in tax planning. More investors are attracted to this type due to its reliable nature which also
helps in the capital formation. This also offers efficiency in tax planning. Furthermore, investors

are attracted to such type of due to its reliability and nature in the capital formation. This also
given the less liability which is beneficial for Sam.
CONCLUSION
From the above report, it is being concluded that the proper management of the business
is essential so that they can functions its operations in an appropriate manner. Business law
governs the departments and its operations. They basically run its functions with the sole aim of
generating more revenue as per their will. Sam is suggested to use the limited liability for the
expansion of the long term profits
of their business. This also helps them to have the personal and professional life with the ease
and also getting the huge investment which also assist them to ear more profits.

REFERENCES
Books and Journals
Butturini, P., 2020. Written Resolutions in UK Companies Act 2006 and Their Possible
Relevance beyond UK Borders. European Company and Financial Law Review, 17(6),
pp.760-784.
Lord, N., Wingerde, K.V. and Campbell, L., 2018. Organising the monies of corporate financial
crimes via organisational structures: Ostensible legitimacy, effective anonymity, and
third-party facilitation. Administrative Sciences, 8(2), p.17.
Peters, J. and Mathias, L., 2018. Enacting student partnership as though we really mean it: Some
Freirean principles for a pedagogy of partnership. International Journal for Students as
Partners, 2(2), pp.53-70.
Sikorska-Lewandowska, A., 2021. The Status of a Limited Liability Company in the Polish
Legal System.
Bruwer, J.P., 2019. Critical innovation skills required of sole trader Small, Medium and Micro
Enterprise (SMME) management and its influence on perceived business profitability.
Coe, P. and Brown, J., 2019. What’s in a Name? The Case for Protecting the Reputation of
Businesses under Article 1 Protocol 1 of the European Convention on Human
Rights. Journal of European Tort Law, 10(3), pp.286-315.
Małozięć, C., 2020. Participation in a Limited Liability Company as an Element of Marital
Property. Law and Administration in Post-Soviet Europe, 7(1), pp.22-33.
Russell AM QC, D. and Graham, T., 2019. Trustee investment; non-financial considerations; the
development of directors’ core fiduciary in s 172 Companies Act 2006. Trusts &
Trustees, 25(9), pp.867-870.