Business Law Assignment

Business Law Assignment

Question 1

Procedure on changing articles

The changes required in the company's articles basically operate under the provisions of the Companies Act of 2008, therefore, if Chris and Mathew planning for alteration in the company's article following is the procedure drafted for their assistance. The most important thing that needs to be considered in the changes is the involvement of shareholders and without the approval of shareholders changes are not possible. However, in the case of PL, shareholders are the wives of Chris and Mathew; therefore, their approval would not be any problem. Thus, beside the approval, other services that need to focus on are discussed below;

Reviewing the existing company articles and to do this a report must be formulated highlighting the company's current articles in order to explain the effect whether the amendments required to meet the company's requirement or not.

Drafting the articles of association based on the discussion of the requirements.

Updating the company's articles by replacing the existing articles and with up to date documentation that highlighted in the Companies Act of 2008, however, this totally depend upon Chris and Mathew, whether to review the report in order to figure out the effect of the articles or any amendment required.

As the directors decided to make changes and changes drafted in the report, therefore, the actual process for adopting the new articles or amendments follow one or the other form. The first form of approving the changes is that if the company has one director, than the changes in articles approved by the director and shareholders through a resolution of 75% acceptance. However, in Chris and Mathew case, there are two directors, therefore, this condition cannot be fulfilled. Whereas, in Chris and Mathew case, the changes are approved through the resolution and the written special resolution under the procedures that mentioned in the Companies Act of 2008. As the resolution approved, the directors need to send the resolution to the Companies House with the new articles. Thus, in this way changes can be made in the articles by Chris and Mathew.

Question 2 (I)

Actions with creditors

Creditors are generally operated under the law and thus they are responsible to adhere these rules. However, as per the Forbes, there are rules that contradict with each other and thus it make difficult for those who are 100% law abiding firms. Thus, in the given case, Chris and Mathew need to pay the creditors and this will they do in the coming month; therefore, the creditors need to show patience. But looking through the other perspective, the creditors also need to protect their reputation by paying the different payments of utilities and government expenses etc. In this regard, it would be beneficial for Chris and Mathew to pay the creditors as soon as possible.

(II)

Possibility of Insolvency Proceedings

As the PL facing financial difficulties there are different options available to the liquidation for Chris and Mathew. The best part of the insolvency proceedings and liquidation is that once ...