BUSINESS LAW

Business laws in United Kingdom

Business laws in United Kingdom

Introduction Company Law

The UK was one the nations to build the rules and regulations for companies operations. System of corporate governance and law, establish the legal basis on which companies run and formed, is main part of legal structurein which business are carried out. As the business atmosphere is emerging likewise legal framework is getting divorced gradually according to the needs of the companies (CA2006, pp.1).

Companies

In the Companies Act, except the context or else entails-“Company” means a company incorporated and registered under this act, that is

A company registered and formed afterthe commencing of this section, or

A company that instantly before commencing of this section-

Was registered and formed under Companies Act 1985 or Companies Order 1986, or

Was an operating/existing company for the objective of that Order or that Act.

The Companies Act

The Companies in this Act means-

The law provision for this company Act,

Part 2 the Companies (Community enterprise, Investigations and Audit) Act 2004,

Provision of the companies Act 1985 that may continue in power (Companies Act, 2006, p. 61).

Limited and unlimited companies

According to section 1(2) of the Act of 1985, “limited or unlimited companies”reveal changes to what is to be added in a company's memorandum of association. A company can be limited by share or by guarantee, and no limit of liability on the members of the company is said to an “unlimited company”.

Public and private companies

According to this section 1(3) of the 1985 Act, A “private company” can be any company which is not operating as a public company. A public company is a company when its certificate of incorporation states that is a public company by law.To get this certificate the company is required to fulfill the provisions of the Act. The authorized minimum capital share requirement is approximately £50,000, and will be unchanged in the Act.

Company incorporation

Company formation Act is on how companies are created. It changes or, as the casemay be, restates equivalent provisions in the 1985 Act (CA2006, pp.5). Any Director or Secretary of the company may require the authorized registrar to provide a copy of certificate of incorporation of the company to him, which is signed by the registrar and authenticated by the seal of registrar (Adams, 2010, pp.440)

Memorandum of Association: It verifies the purpose of the subscribersin memorandum to structure a company and become company's member on its formation.In case a company limited by shares. Its memorandum will also give evidence of members' agreement to acquire at least one share in the company.

Articles of Association: Articles of the association are rule of the company, selected by the company's members, which rules on a company's in-house affairs of the company's.

Documents Registration: Documents includes application for registering company, proposed name and registered office address of the company, Statement of guarantee which states company is limited or unlimited by guarantee, proposed officers Statement, Statement of compliance, Issue of certificate of incorporation then company's members get in last (companies Act 2006, ...