Corporate Law in the UK and Process of Incorporation of the Companies

By

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Background1

Problem statement1

Aims and Objectives1

Research questions2

Significance2

Methodology2

Reliability5

Triangulation6

Validity8

Ethical Considerations10

CHAPTER 2: LITERATURE REVIEW11

Definition of corporate law11

Rationale for Corporate Law13

Structure13

Company Law in the UK14

The Companies Act 200614

Company Law16

Goal of Corporate law17

Forces Shaping Corporate Law18

Incorporation process18

Patterns of corporate ownership19

International competition20

Cross-jurisdictional coordination20

Business affected by corporate law21

Bank21

Small business21

Partnership23

CHAPTER 3: NEED FOR REFORMS25

Banking Crisis28

Problems faced by UK banking sector30

Refinancing Risks30

Foreign Bank Exposure30

Sovereign Debt31

CHAPTER 4: REFORMS BY ICB33

Too big to fail34

Safer structure34

CHAPTER 5: IMPLICATIONS OF REFORMS43

Structural reform options to promote financial stability43

Structural reform options43

Financial stability initiatives taking place internationally45

Why a retail ring-fence?45

Costs of a ring-fence48

The bank reaction to a retail ring-fence52

The design of the ring-fence58

Douglas Flint explained the rationale behind his proposals:60

Regulatory implications of reform61

The ring-fence and other reform options62

CHAPTER 6:CONCLUSIONS AND RECOMMENDATIONS63

REFERENCES67

CHAPTER 1: INTRODUCTION

Background

This research will focus on the UK corporate law banking reforms which will be implemented in 2015. These reforms were proposed in Sept 2011 in the report published by independent commission on banking. This research will study the feasibility of these reforms and discuss the impacts arising from these reforms. The major aim of these reforms is to create a more competitive and strong banking industry in the United Kingdom. These reforms will affect the future regulations of the UK banking industry. Hence, we can say that the future of the banking industry is dependent on these reforms. The proposed reforms have created interest in the people involved in banking industry.

Problem statement

This research will focus on the reforms presented by the independent commission on banking. The researcher has chosen this topic to study the implications of these reforms. These reforms will help the banking structure of UK and it will become stronger and competitive.

Aims and Objectives

The researcher aims to achieve the following objectives

To study the need for reforms for banking sector

To study the reforms passed by ICB

To study the implications of reforms on banking by ICB

Future aspects of reforms on banking by ICB

Research questions

The research aims to address the following question

Why there was a need for reforms for banking sectors?

What are the reforms passed by UK corporate law?

What would be challenges faced by banks in implementing these reforms?

How the banks would benefit from these reforms?

Significance

This research is very important because though the objectives the researcher will contribute to the literature. Since these reforms have been proposed in Sept 2011, the researcher will contribute to the literature. This research will be helpful for many academicians and students studying law. This research will also act as a feasibility report for these reforms. The researcher will do in-depth analysis of these reforms and presents findings in systematic way.

Methodology

Secondary research has been used as research technique for this research. The internet publications, studies on similar subjects and article have all been considered for this research. This research began with existing literature detailed analysis. The final conclusions were drawn from the analysis of secondary data available on the internet and other secondary sources. Since this research is based on a broad subject, secondary research methodology is ...