UK CORPORATE LAWS

UK Corporate Laws

UK Corporate Laws

Introduction

Throughout the world, the corporate sector faces number of legal issues in terms of fraudulent and other criminal offense or ethical violations. For this reason, there have been number of laws designed in every part of the world to counter such untoward incidents and to ensure the smooth functioning of the corporate sector. In the United Kingdom, there have been number of cases of fraudulent in the corporate sector too, which resulted in many new and revised corporate laws to regulate the effectiveness of the said sector (Parkinson 1995, Pp. 58-93). Throughout the world, English laws are considered to be the best in terms of providing justice and dealing with numerous issues which surrounds the corporate world everyday and they have to be legally dealt with, applying the correct law to solve the cases. This document gives an overview of the legal formalities which the fraudulent case between Primus Limited and Secondus Limited. The document would review the relevant case in the legal framework which includes the Company law of UK in general and specifically include the 'lifting the veil and United Kingdom's insolvency law', corporate personality law', 'accounting ethics' and the 'Solomon versus Solomon case' as the standard framework for dealing with corporate fraudulent cases in the United Kingdom. These examples would ultimately assist to solve the case of the Primus ltd versus the Secondus ltd fraudulent case.

The UK corporate laws

In the United Kingdom, corporate or company law refers to a set of rules and regulations under the Companies Act of 2006, and is related to all the corporations which were formed under the said Act. Other laws which regulates together with this particular law are the 1986 Insolvency Act, the Corporate Governance Code of UK, The Directives of European Union and the subsequent court cases, whereby the legal vehicle to drive and organize all the business is the company. United Kingdom enjoys the privilege for being the very first country to outline the law of Modern Corporation. Not only being the first country to introduce a comprehensive set of law to govern the corporate sector, the UK company laws is also recognized as an influential model throughout the Commonwealth, the continent of Europe, as well as setting an international standard for other countries to follow laws which give people an extensive freedom to alter and design their respective company's internal rules and regulations within the legal framework and in compliance with the legislations abiding the legal rights of the investors and stakeholders. In United Kingdom, the corporate governance has the right to adjudicate the duties and rights of all concerned bodies including the shareholders the directors, the employees and the creditors (Parkinson 1995, Pp. 58-93).



Corporate Finance

There are two money raising options that corporations in the UK can concern regarding their financing schemes. One is equity finance, which builds up a company's capital by integrating the conventional and traditional techniques to issue shares to the stock ...