Company Law

Company Law

Company Law

Introduction

Businesses have always been subjected to frauds and mistreatments since the beginning of times, with business partners cheating on each other and getting indulged in deceptive practices in order to make more money and get benefitted from other's investments. It is essential to note that with the increase in number of fraudulent cases and mistreatments, there is an immense increase in the number of laws and regulations made to provide safety and security to the businessmen and to ensure that they are treated in proper fashion. It is eminent to mention here that the advancements in various fields of studies and the increase in specialization has led to the development of various laws and regulations which ensure that the rights are protected and they are made to abide by their duties in the right manner. It should be taken to account that the case under discussion deals with the issues of business and investment, and thus the following paragraphs would highlight the concerned laws and regulations linked to the business and its implications:

Discussion

The Case

The case under discussion deals with a business in which three different individuals are involved in a business, Peter holding 70% of the shares of business, while Meg and Stewie holding 10% and 20% of the shares respectively. It is essential to note that because of their lack of experience with the television manufacturing business, both Meg and Stewie trust Peter with the decisions while Peter betrays the trust and invests their money in other business of VHS records, thus earning from there as well. it is essential to note that Peter makes the investment without informing either Meg or Stewie, who are not in favor of the VHS business. It should also be noted that Peter, after getting highly benefitted from the television manufacturing business, was interested in starting DVD manufacturing business but was offered partnership in VHS records at the same time, and thus he decided to switch his interest without informing the two business partners.

The situation becomes worst when Meg and Stewie claim that they do not want their money to be invested in VHS records, as that involves certain environment harming actions and thus is a detriment for the health and wellbeing of the citizens. Moreover, they claim that they made investment in the business because of Peter's plans to start DVD manufacturing and were not even informed about the changes in his preferences. The situation came to an abrupt halt when the VHS record business turned out to be a failure and the company had to bear the loss of £3million.

Analysis of the situation under Part 10 of Companies Act 2006

The Companies Act 2006 mainly deals with the various problems and issues of the various businesses, mainly highlighting the comprehensive code for the company law of the United Kingdom. It is essential to note that it is an Act of the Parliament of the United Kingdom that is known for being the basic source of the company laws in United ...