Question 1a) Explain to Sal and Omon the significance of Limited Liability for them
Business association’s law most commonly referred to as business law is a part of the law that affects companies and business organizations such as corporations, partnerships, and organizations concerned with humanitarian or commercial activities. The company or juristic person has separate legal personality. Therefore, the people investing their money in the business have limited liability. A limited company is where the liability of associates is limited by shares or guarantees. Limited liability is when an individual’s financial liability is limited to a fixed sum, known as the person’s investment in the company or partnership. When a company with limited liability is sued, then the plaintiffs are suing the juristic person and not the owners or investors. The significance of limited liability to Sal and Omon is that in case the business fails, then they do not risk their personal possession, and they cannot be made responsible for any unfulfilled company obligations and debts that are more than the amount that each of them invested.
Question 1b) Explain, using case law, under whose name the stock of new shoes belonging to the company should be insured, and why it would be a terrible idea for them to be insured under Sal‟s name.
Case law is a set of existing rulings or precedents to make new interpretations of the law, and are not the same as statutory law. Case law in civil and common law traditions create differences in the way courts render decisions. If the stock of new shoes belonging to the company is insured under Sal’s name, in case of any loss, it implies that it is not the company that is insured but Sal, since the insurance policy creates, s a contract between the insurer and the insured. Sal will be required to pay part of the loss while the insurer pays the rest. Therefore, it is a terrible idea to insure them under Sal’s name, but should be insured under the company name.
Question 1c). Will Omon be able to take the matter to court instead of arbitration? Explain using relevant case law.
The articles of association of Shoes Limited require that if the owners are in dispute with the company, they should be decided by an independent arbitration. However, Omon wishes to take the matter to court. This should only happen if negotiations with Sal or invoking any other formal mediation process fail. The mechanisms available for the courts to resolve the dispute could be for Omon to start a minority shareholder’s action against Sal since both Sal and Omon are equal shareholders. Omon can ask the court to procure an account on who owns the company. But what Omon can do depends on the written agreements are in place between him and Sal. If Sal’s expenditures have a significant impact on the business, then Omon can apply to the court for an interim injunction to help the business function until the dispute is resolved. Omon can go to court; where the court may appoint a provisional director to break the ties between him and Sal, who has the powers to make decisions as a director and not as a shareholder.
Question 1d). Explain on what basis the liquidator will distribute the remaining assets of the company, and how might Billy have better protected his position?
Shoe limited is insolvent because it is indebted to Natbank on a floating charge of £5000, Milbank on a floating charge of £2000, Royal bank on a fixed charge over books debt of £1000, Billy on a debt of £2000 for leather supplied, and Carol for one month’s wages. In limited liability companies or partnerships, the liquidator will distribute the remaining assets to Omon and Sal according to the balance in each member’s capital account. They have capital accounts that start off with their initial investments in the business and are increased when profits allocated to them and decreased when profits are distributed to them. In case, there is no sufficient cash to pay each one of them, the amount in the capital account, then whatever cash or assets that remain are split according to the relative size of their capital accounts, which is fifty-fifty. However, Billy can send bills for the full amount of debt to the company, and if he was a secured creditor whose debts are attached to the assets. He can claim property and sell it to cover the debt. Creditors can only claim assets that are stated as collateral in secured loans, and they can continue to send bills stating how much the company owes and demand payment.
Question 1e) Explain the differences between an incorporated company and a partnership
A partnership is a type of unincorporated business organization were general partners manage the business and are equally liable for its debt. Other individual partners known as limited partners may invest. However, they cannot be directly involved in the management and are liable to the extent of their investment. Each partner shares equal responsibility for the company’s profits or losses, and its debts and liabilities. The partnership itself does not pay income taxes, but each partner has to report their share of business profits or losses on their individual tax returns. A company is incorporated by drawing up a memorandum of association, which is lodged with the company’s house. In the UK, a private limited company or public limited company are generally called corporations. Corporations such as Plc may be subject to takeovers or mergers since shares can be purchased by anyone, shareholders do not actively participate in the activities of the business. In case of issuance of stocks, a PLC can raise capital which an LLC cannot.
Question 1f) Explain using relevant case law, whether Sal and Omon could claim under a statutory scheme to compensate employees injured at work if one of them were to be injured at work
The eligible workers are entitled to compensations from the employers for sustaining work-related injuries or illness. The specific benefits are subject to state laws concerning workers’ compensation, as well as company-specific policies on workers’ compensation claims.
Question 2) Explain what the general duties of directors are under the Companies Act 2006, and how they reflect the common law
The Companies Act 2006 includes seven general duties as follows:
- to act within the powers of the company;
- to promote the success of the company;
- to exercise independent judgment;
- to avoid conflicts of interest;
- not to accept benefits from third parties;
- to declare an interest in proposing transactions or arrangements with the company;
- To exercise reasonable care, skill and diligence.
The Companies Act 2006 (CA 2006) contains a number of provisions which affect directors including the statutory codification of directors’ duties. There are seven duties that broadly reflect and codify the law which was in existence prior to the CA 2006. The codification is not exhaustive. The directors still have certain duties under common law and equity. Therefore, the pre-CA 2006 law on directors’ duties will remain highly relevant.
The Companies Act 2006 (2006 Act) is still young. The statutory statement of directors’ duties (the statutory statement) is younger still: in the case of sections 171 to 174, and in the case of sections 175 to 177.
There is, nevertheless, already a significant body of 2006 Act-related case law, in particular in relation to sections 171, 172 and 174. Taken together, these cases help to answer a question much debated by market participants in recent years: does the statutory statement merely codify the common law obligations of company directors, or does it mark a radical departure?
The latest case law
In the debates on directors’ duties that have raged since codification, the case law is a resource that is at risk of being overlooked. More weight has sometimes been placed on less authoritative sources such as ministerial statements and the explanatory notes to the 2006 Act.
The 2006 Act states, somewhat delphically, that:
- The general duties are based on certain common law rules and equitable principles as they apply in relation to directors and have effect in place of those rules and principles as regards the duties owed to a company by a director (section 170(3)).
- The general duties shall be interpreted and applied in the same way as common law rules or equitable principles, and regard shall be had to the corresponding common law rules and equitable principles in interpreting and applying the general duties (section 170(4)).
- While it is always necessary to submit the pre-2006 Act cases to the “section 170(3) and (4) test”, it cannot be doubted that the old common law rules and equitable principles remain if not intact, then of continuing relevance.
- The post-2006 Act cases vary in authoritativeness too, from persuasive opinions of the Scottish Court of Session to decisions of the Court of Appeal. Most recently, dissenting opinion in a judgment handed down by the House of Lords addressed the relationship between the 2006 Act and case law. A number of the judicial statements referred to in this article is undeniably dicta of one sort or another.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!