The Compliance, Organization, and Impact of Important Business Laws

Business organisation formation, management and funding

There are various types of organisation which are to be covered under this heading. These organisations comes under two heading incorporated and unincorporated. There are certain steps which are required to be followed for the formation of an organisation (Peterson. and et. al., 2016). All of the above are explained below.

Unincorporated Organisations: These are those types of organisations in which the legal formalities are less rigid to be followed. Business which falls under this category does not have to follow lengthy procedure for its establishment or registration. Some of these are explained below and they are:

Sole Proprietorship: They are that type of business which is run by a single person or an individual. This does not mean that he cannot higher another person to work with him. The process of registration requires the name of the person doing the business and HMRC number is also required by it (Boldt, Kassis. and Smith, 2017). The management of this organisation is done through managing the persons working for the individual. Funding of these organisation is done through the resources available to an individual like investment done by family member and money borrowed from friend. Get Assignment Examples? Talk to our Experts!

Partnership: In these organisation there are two or more than two persons which come together to form an business. The organisation has to get itself registered under the HMRC. Management of these organisation are done by the person who has been given the opportunity to do it by the other partners. Funding of these organisations are done through Loan from banks, personal investment by any partner and credit are few ways of investments.

Incorporated organisations: They are those forms of business and companies that are required to follow legal process in depth. Companies registered under this have to go through rigid and lengthy process that is more complexed in nature. These organisations are explained below:

Private Limited Company: These are those types of organisation that has to follow the rules prescribed under the Companies act of UK. The company is managed by the manger who is responsible for management of employees and other managing activities. These organisation are required to be form Memorandum of Association and Article of association and also includes the amount of person going to be part of it and has to registered in the companies house. Funding of the organisation is done by taking loan from banks and inviting investors to invest in there company. Public Limited Company: These are the organisations which are required to be follow the proper process prescribed under the law. In these types of organisations Article of Association and Memorandum of Association is to be formed and name of the company is also included with it. After this the company has to give all the important documents to the Companies house for final registration which has to be given by it (Amariles, Bassilana. and Winkler, 2018) . Funding is done through stakeholders of the company, taking loan from bank and companies of government that provides loans like LIC etc.

Law and Financial Crimes

Advantages and Disadvantages of various organisations

Sole Proprietorship: It does not involve complex process of formation like the limited company which makes it more flexible in nature and profit are also enjoyed by individual running the business which makes high profit gains. It can have shortage of resources at anytime due to lack of investors this can lead to huge amount of loss and also dissolution of business (Allen, 2017) .

Partnership: The advantages of this organisation is that it is easy to formed as only two persons are needed to start it and does not require much complexity this makes decision as they are made by the partners or the person authorized for it only input has to be given by partners . Disadvantage of it is that it is not stable in nature means any partner leaving due to any reason results in ending of the partnership.

Private Limited Company: Advantage of this is that the control of organisation relies in the hand of the owner due to which no effect is going to take place if any person leaves the organisation and all decision are taken by directors . Disadvantage is that it has restriction in transferring of shares. As it can be transferred only by permission of all the members of board of directors after having board meeting in which proper agreement is prepared for it.

Public Limited Company: Advantage is that flexibility in investment is there as everyone can invest in a company which eventually leads to increase in investment and loss chances is going to reduce. Disadvantage is risk of losing ownership which means multi pal person investing may claim for owner at anytime as it is open for investment (Barrédy, 2016).

Difference among Standards, legislation and regulation and its impact over business

Legislation:It involves the formation of regulation by parliament. This can also be understood through the acts passed by the government (lump. and LaRosa, 2017). They impact an organisation in a way that at the time of formation of rules these organisations has to form basic framework within the boundaries of it.

Regulation: It means those rules which are required to be followed by the organisation in order to avoid any kind of legal issues. These are important to be followed in a sense that if not followed properly then company can fall into legal problems.

Standards: They are those set of rule required to check that everything is done keeping in mind all the legal aspects within an organisation (PLee, 2017)).

This can be explained through an example suppose a company knows that particular rule is impacting the salary of employees and still continues with it. Issues cab be faced by the as case can be filed towards the injustice done by them. Want to get Assignment help? Talk Our Expert Now!

Explanation of company, contract and employment law with its impact over the organisation

Every sort of business are required to understand that they must be able to follow the terms and condition of law. While following the law, organisation can see that different legislation will have different impact which will change the overall scenario of the organisation. Below, there is the discussion about some of the law and its impact upon business organisation. 

Company law: This is the law which governs the business organisation as every every guidelines are mentioned under Companies Act, 2006 (Samuels, 2017). It has a great important for any of the business organisation as it simply allows to understand and tackle all of the situation that how any of the work is needed to be conducted which simply reduces the errors within the organisation. This law is applicable on all of the organisation which are commenced under incorporated organisation. There are favourable as well as unfavourable impact of company law upon the organisation. The main impact of company law is that, it gives the burden to follow lots of criteria which incur unnecessary expenses and reduces the overall profit of the company.

Employment law: The law and regulations which explains about the relation of employer and employee is known as employment law. This law simply explains that how relation should be maintained and how they are required to treat each other in any of circumstances. This law has a moderate impact on organisation where it doesn't give right to discriminate any of the employees (Wen, 2016). Also, this laws says about the wages rate which sometimes increases the overall expenses of the organisation.

Contract law: This is law which discusses about the relation between two parties while performing any of the task. This law says that whenever any of the party enters into the contract they are not allow to terminate it in between as it will be counted in breach of contract. Also, whenever contract is signed the chances of accomplishing the target increases automatically which is one of the positive impact upon the business organisation.

a) Case

In this problem the facts given are Maxwell is a dealer of art and has agreed to Angelica to sell a painting by Duvell for £500. Angelica has deposited 10% of cash in advance and the rest of the payment is to be done after the close of exhibition show in Birmingham. Before the closing of exhibition, it is discovered by Angelica that Maxwell has negotiated with other person and is going to sell the painting to him for £900. There is applicability of ADR as dispute has arisen between the parties, due to the negotiation done by Maxwell to another client.

This can be solved through arbitration that is a process of ADR. It means an arbitrator is there who listen to both the parties and the case coming under such dispute is deal in arbitrary tribunal court and then gives a judgement regarding the dispute. Also, there are other alternate through which this particular case can be resolved. Both Maxwell and Angelica had a contract where consideration was also there. It means that both of them have agreed upon the contract. After this, painting was sold to another person which means there was a breach of contract. Here, Angelica has the right to sue Maxwell and recover all of the damages and as both of them had already entered into the contract which means that the contract which has been formed between Maxwell and another client was void. Through this particular process damages can be recovered easily.

b) Case

In this problem Nicholas Jakob is an electrician who is married and is living with two adult children. He has worked for his entire life in Newcastle. Last three years he is working for Regents Vision and due to its closure, he got an offer of job in London and refused to move there because of this he lost his job. In this case the element of fact is Nichol Jakob does not want to leave Newcastle (Gaitán, Herrera-Echeverri. and Pablo, 2018).

This case can be solved through negotiation process of ADR in which there is going to be a negotiator who acts as a communicator between the parties and has to speak to the two parties individually and then has to make them sit together to come to a conclusion. He does not give precise judgement only but gives a solution to the problem. A negotiator can help in this situation by fixing a meeting and making company agree to a point to provide Nichol with the clients in Newcastle and make him operate from there only. But if this process will not be helpful for resolving the problem then in that respective situation employment law can be applicable easily. According to employment law, it is necessary for any of the employer to give prior notice to the employee regarding the shifting of office. As Jakob is not willing to change which means that wages should be given by the company and proper time should be provided. This will certainly allow Jakob to find another job within specific time period. In short, company had not provided any of the notice to Jakob where breach of employment law can be seen002E

c) Case

Facts of the problem is as follows Johnson has been working for a construction company for last six months and fell from stairs that were there on the third floor because it was not properly fixed. Due to this his back and knee both got injured. As a result of this he was not able to come for job for 4 weeks and is now demanding for compensation. Company told that there is a notice board stating 'Be aware the railings are not permanently fixed. Do not lean on it'. In return to which Johnson said that he did not notice the sing. Take Law Assignment Help from professional experts!

In this ADR process to be applied is mediation in which a mediator is there who solves the dispute accrued. It has to be applied in a manner that both parties are going to talk with each other through mediator who is going to make them come to a conclusion. But if this problem cannot be resolved through any of the mediator then law of tort will be applicable. It is because company had a knowledge that railing is not properly fix which can create issue for the workers. Still, they didn’t focus towards it which shows the carelessness of the company. Here, company is required to compensate Johnson for the damages because there was a duty of a company to work according to the requirement where they were unable to meet out the specific requirement. It means that company will be liable to pay of the damages to Johnson in this respective case.

CONCLUSION

Above file has covered the wide topic of business law. These laws are very important in terms of the development of corporate sector as rules are prescribed in it. Various organisation and structure has been covered with advantages and disadvantages. Other laws such as company, employment and contract law are also covered in relation to its impact over the company. The last part explains about ADR and how it can be used as an effective method for solving the dispute.

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