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

By

TABLE OF CONTENTS

CHAPTER 1: LITERATURE REVIEW1

Research questions1

Rationale for Corporate Law1

Company Law in the UK1

The Companies Act 20062

Company Law4

Goal of Corporate law4

Forces Shaping Corporate Law5

Incorporation process6

Patterns of corporate ownership6

International competition7

Cross-jurisdictional coordination7

Business affected by corporate law8

Bank8

Small business9

Partnership10

Bank reforms 201511

Methodology11

BIBLIOGRAPHY13

CHAPTER 1: LITERATURE REVIEW

Research questions

The research aims to address the following question

What are the recent reforms of UK corporate law shaping the organization?

Rationale for Corporate Law

When a corporation is formed, the risk is divided among the shareholders and the shareholders become liable to their share only. The whole risk is carried by the corporation itself as it is treated like a separate entity. People invest more in corporation because they don't have to carry much risk and whole of the risk is carried by the corporation itself. Before the corporation comes into existence, it must get itself registered in its area and must present the article of association before the registrar.

Company Law in the UK

The company law in the UK is the body of law that deals with corporations created under the Companies Act 2006. Also regulated by the Insolvency Act 1986, the Code of Corporate Governance in the UK, the directives of the European Union and court cases, the company is the main legal vehicle for organizing and running the business (Adams 2005, pp. 76). Tracing its modern history in the late years of the Industrial Revolution, corporations now employ more people and generate more wealth in the UK economy than any other form of organisation.

The UK was the first country to prepare the statutes of modern societies, where through a simple registration process can incorporate any investor, limit the liability of management to creditors in the insolvency of companies, and where administration was delegated to a centralized board of directors. Influential international model, the UK law has always given people ample freedom to design the internal rules of business, provided that the mandatory minimum rights of investors under its laws are met.

The Companies Act 2006

The Companies Act 2006 Britain has upgraded its corporate law with the so-called comprehensive Companies Act 2006. This was announced by the German-British Chamber of Commerce and Industry on 21.3.2007. The Companies Act 2006 applies, inter alia, companies in the form of a private company limited by shares (limited), public company limited by shares (plc), and in July 2005 established community interest company (CIC) and to facilitate the establishment and management. In English law the place of the registered office is not an element essential to the jurisdiction of British courts. Different rules exist when one is dealing with a company registered in England and a foreign company who has a "branch in Great Britain" or who has established a business in Great Britain, which is not as a branch of the company.

The Companies Act 2006 is set in pieces in place. From January 2007 the following rules are in force:

The share register (registered office) has been converted to electronic operation. This relates to the filing, viewing, publishing and storage of information ...