BMP4002 Business Law: Report on the UK Legal Context

This report provides an overview of the legal context for business organizations in the UK, focusing on key sources of law and different business structures. It begins by introducing the fundamental sources that govern business management in the UK, primarily the Company Act of 2006, and highlights the importance of employment and contract laws. The report then explores various legal business structures, including sole traders, general partnerships, partnerships, and limited liability companies, detailing their advantages, disadvantages, and legal implications. It discusses the roles and responsibilities of directors, the significance of the Memorandum of Association and Article of Association, and the legal considerations for each type of business structure. The report concludes with a recommendation for IOM Solutions, suggesting that a Limited Liabilities Partnership would be the most suitable structure for Sam's business expansion, providing higher security and operational flexibility. Desklib offers a wide range of study resources, including past papers and solved assignments, to support students in their academic endeavors.

BSc (Hons) Business Management
BMP4002 Business Law
Assessment 2
Report describing the key sources of
laws as the legal context for business
organizations in the UK
Submitted by:
Name:
ID:
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Contents
Table of Contents
Introduction ...............................................................................................................................3
Businesses & Organizations in the UK........................................................................................3
The legal business structure of UK companies..........................................................................4
Sole Trader.................................................................................................................................4
General Partnership...................................................................................................................5
Partnership.................................................................................................................................6
Limited Liability..........................................................................................................................6
Recommendations for IOM Solutions........................................................................................7
Conclusion..................................................................................................................................7
REFERENCE.................................................................................................................................7
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Introduction
Business law is related with the legislation that depicts that how the management that
the management are formed and operated. All managerial enterprise have to involves
themselves into varied amount of diverse actions in respect to conduct the regular basis of the
organization with the purpose of gaining higher term of earning. The structure of management
will rely on their working in the sole proprietorship, to corporations to multinational
organization. As it also involves several liabilities by which the management are deals in
respect to maintain legal obligations (Bright, Marullo, and Zamora Cabot, 2021). Hence, the
commercial laws are the sort of legislation that regulate the business from their initial division
and last. The following report covers the scenario of the several forms of the business as with
their benefits, drawbacks, legal liabilities and suitable recommendation in relation to Sam for
their management.
Businesses & Organizations in the UK
In UK, the fundamental sources that controls the management of the Company Act of
2006. On the other hand, the management also require to deal with the provision of
Employment laws and contract laws as effectively and as well as efficiently. It is the
fundamental key criteria of the success of the business. It will rely on their aspects and sort of
the management with various rights and as well with separate legal entity, common seal and
right to sue and to be sued. It also involves the concept of non-disclosure agreements and
letter of intent and so on. The employment laws also operated with the employer and as well
as employees for the legal commitment of any wrong act on their part as against to the
business or any other individual (Davidson, and Forsythe, 2021). Hence, the management can
also made suitable and effective terms as if one fail to present their roles and responsibilities
as according to the rules and regulations that are performed in the legislative act. The
directors are the one who are accountable for the business and conduct of the business by
presenting liabilities on part of them if there are higher term of compliance of particular
orientated obligations. As they are needed to take regular basis decisions and measure for
their conditions of the business at the time of authorized divisions. But it also involves the
scenario in which the directors and measures for the affairs of the business while presenting
in authorized capacity. But it involves the scenario in which the directors should presented
some faults then they can be liable by any other authorized directors in which one can be
asked to make particular compensation for the furthermore loss. They will also relates to the
terminated form the management or it can be presented that the business or ineligible for the
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post. Basically for the partnership firm, the agreement of the partnership can be made
ineffectual by the provisions of the partnership Act, 1890. The two fundamental term of
documents that are needed by each management are of Memorandum of Association and
Article of Association (Ho, 2021). It will support in directing that how the business requires
to develop the furthermore functioning. It also linked with the memorandum of company in
which it require to be signed by their shareholders at the time of incorporation. Hence, Article
of association is a written agreement in which norms and laws are agreed by their directors
and shareholders for conducting the manner of management.
The legal business structure of UK companies
It involves several forms of the management but each and every will deals with their
own advantaged and disadvantage. Hence, in respect to understand about the suitable option
that require to present the knowledge about all the present structure. Hence, Sam wants to
expand their management in which they are functioning and operating since past eight years.
As the management in which they are maintaining as a sole trader in which they are the
individuals who require to satisfy the liabilities by themselves (Li, Phan, and Sun, 2021). But
now they are effectively interested in managing effective terms of options that are available
to set suitable business forms for their management who deals in selling electrical parts. As
there are several advantages and disadvantages in terms of the market fields are as follows -
Sole Trader
This section is also related with the sole proprietorship that are considered as one of
an effective manner to start the management. On the other hand, it lies with lower term of
formalities in terms of incorporation, administration and degraded. The individuals who
functions such management that are termed as proprietor or owners of the similar term of sole
and separate entity section with higher term of proficiency and liabilities. This sort of
management are effectively predominant in the nation by their smooth working and
advantageous terms of person. These also resulted in the option of their own division of their
owners. As there are varied amount of benefits of their form in which some are termed to
have global control on management that means that proprietor have suitable right to make it
profitable with themselves. The major section of privacy that are basically related with the
issues that are prevailing in various forms that will not raise with the owner. It is only one
who have an effective knowledge in terms of the intrinsic dealings of the management. On the
other hand, incorporation of such forms of management will relates to the suitable section that
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will not need any future registration. On the other hand, it covers suitable drawbacks in terms
of the liabilities of their own that they have to bear. As also the external cost will have to bear
by single individual and it will relates to their banking and financial risk that are raise.
Similarly to another things that lies with particular legal implications that require to deal with
their sort of the section and taxes like corporate and income tax that are needed to be paid by
their proprietorship themselves on regular basis out of their earning (McGregor, and Ingram,
2021). Also in respect to hold the information of their consumer that they require to continue
their general information protection rules. Such rules comes with the particular penalties in
which where one fails to make such act in respect to them. By this, the national insurance and
to eliminate any legal effects by storing suitable self assessment tax returns on time.
General Partnership
In this section of management two or more than two individuals deals to coordinate
their resources in respect to develop a management with the aim of having earning of
profitability. In UK, such form is termed as one of the most prevailing one. The persons who
are engaged in the affairs of the management that involves the task of taking critical decisions
that are followed as the associates who perform works with their co-associates for the
management. General partnership is one of the structure of the partnership model in which the
functioning of the similar to the partnership. The procedure of incorporation is effective and
low cost. In this, it is termed that the partners equally maintained their roles and
responsibilities together in similar proportion and that also share their profitability and losses
in the similar proportion (Menand, and Ricks, 2021). Hence, after this, the profitability of the
partners also hold the authorized sections to import the labor assets, investment and skills to
the management. Out of some sort of the advantages, one will get equal term of share of
profit at the time of sharing the liabilities. Furthermore, the legal implication of such form are
arranged as per to the present legislation of the partnership firm that are not accepted as a
separate legal entity other than their owners. Due to it, the partners are bound to pay their
division of taxes as per to profitability that have been hold out of the total share of earning of
the business. As the taxes on the overall income are to be paid separately on the terms of the
firm themselves.
Partnership
When two or more individuals are coordinate with each other will come under this to
share the earning and liabilities are termed to be formed as a partnership. The fundamental
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aspects that are needed for the formation of varied sort of partnership firm with the basic
section of partnership deed between the partners as with the level in which the profitability
and liabilities are to be hold. As it lies the discretion on the division to present the transactions
of the management by any one of them (Pilkerton, and MacDonald, 2021). The availability
of amount of associates is a critical path at many time that can proved to be both benefits and
drawbacks. It involves positive aspects that offers larger amount of network cause that are
being engaged with several owners. Hence, the negative aspects that can individual tends to
loose the direct and overall control of the management and reason being the section of wide
shape.
Effectively, managing about the legal implications, the associates are not bound to pay
the tax on the total income that have been produced out of the partnership dealings. Instead of
each person are need to pay the similar sort of their part of earning. Hence, as per to the losses
and profits of partners are counted back in the associates partnership tax returns.
Limited Liability
As it also advised that the liabilities of the members of the limited liabilities
organization are classified to the manner of the amount that hold their name. Hence, the share
are not issues in the field of the marketplace that for the general public instead of acquiring
from other sources. The management and their candidates functions in the capacity of
separate legal entity that can also be one of their benefits of their form. As it also lies no
essential needs of minimum capital to deal with the management as per to their decision-
making terms and needs of management in an effective and as well as in efficient manner.
Disadvantages can be related to the prescribed terms of shareholders that is half in most of the
cases and limitation on the issuance of business's section to the general public.
As per to the previous section, this sort also enlisted the status of separate legal entity
that resulted to the point that the liabilities of their members are limited to the share of their
financed capital even by the capital that are responsible for full level (Skauradszun, 2021).
Also the partners are not develop personally responsible for the losses or the mistakes that
have been committed with another candidates. Basically for the manner of negligence and
criminal offenses the another will not made co-associate who are accountable as with other. It
also present the manner of the concept of joint liabilities in such section.
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Recommendations for IOM Solutions
The most suitable section that stands in an effective term for Sam as according to the
presented section of the case in the Limited liabilities partnership. After measuring all the
above mentioned section, there are several forms that can be discovered that the aspects that
Sam is looking for there section in the form of Limited liabilities partnership. Also it involves
the manner for evaluating the section to extend their operations in management at the time of
making sure of higher security.
Conclusion
From the above mentioned report it has been concluded that, the manner of legislation that
will control the acts of various management in the Company Act of 2006. It also help in terms
of each aspects that involves the formation and dissolution of the management. It also covers
the pros and cons of all structure as with their present legal implication. Hence, it states that
the most suitable choice that are accessible in terms of Sam for their management as per to
their requirements of the limited liabilities partnership that involves higher amount of
candidates who help them in maintaining their divisions.
REFERENCE
Bright, C., Marullo, M.C. and Zamora Cabot, F.J., 2021. Private International Law Issues in
the Second Draft of the Legally Binding Instrument on Business and Human
Rights. Claire Bright, Maria Chiara Marullo and Francisco Javier Zamora Cabot,
Private international law issues in the Second Draft of the legally binding
instrument on business and human rights, 39(1), pp.35-52.
Davidson, D.D. and Forsythe, L.M., 2021. Business in the Contemporary Legal Environment.
Wolters Kluwer Law & Business.
Ho, J.K.S., 2021. Enhancing Corporate Transparency in the United Kingdom: Compelling
Identity Verification of People with Significant Control. Business Law
Review, 42(2).
Li, M., Phan, P.H. and Sun, X., 2021. Business Friendliness: A Double-Edged
Sword. Sustainability, 13(4), p.1819.
McGregor, C. and Ingram, L., 2021. Empathy and complexity–navigating the waters of
business and law. Modern Lawyer, 4(4), pp.28-31.
Menand, L. and Ricks, M., 2021. Federal Corporate Law and the Business of
Banking. University of Chicago Law Review, Forthcoming.
Pilkerton, C. and MacDonald, S., 2021. Business Accountability for Human Rights: Social
Responsibility & Small Business.
Skauradszun, D., 2021. Restructuring Companies During and After the Covid-19 Pandemic:
A Law & Economics Approach. Nottingham Insolvency and Business Law eJournal
(NIBLeJ).
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