Company Law Overview

Company Law Overview Table of Contents Advantages of forming a incorporating company.. Differences between private limited company and public limited company.. Disadvantages of forming a company A company limited by shares, limited by guarantee or unlimited Three ways the Company Act 2006 has affected private companies Documents required for registration.. Role of Registrar of companies What is the effect of section 33 of Companies Act 2006. Corporate personality and effect on Jack and Jill.. Bibliography.. Advantages of forming a incorporating company The process of formation (registration) incorporated company is regulated by law in the Companies Act 2006. Summarised below the main advantages of incorporating the company. Limited Liability The most important of the advantages of incorporation is its limited liability, what means that the legal responsibility of shareholders is limited to the amount paid on their shares. The most important thing for Jack and Jill might be that their personal assets will not be put at risk. Separate Legal Identity The limited liability company is a legal entity separate from the board and its members (shareholders). And again, any debts made by the company will not be borne personally. Protection of Company Name The name of the company must be unique and no one else cannot use it. However the choice of company name is restricted and complies with the rules. Continuity In case that Directors, management and employees leave, retire, die it doesnt mean that the company will be winding up. Once the company is formed it will be exist till insolvency, bankruptcy, liquidation or other cause of the courts or Registrar of Companies. Taxation Sole traders and partnership companies pay income tax but the companies pay corporation tax which has currently lower rate than income tax. There are also wider range of allowances and tax deductible costs which decreases the taxable profit. Differences between private limited company and public limited company DIFFERENCES PUBLIC COMPANIES PRIVATE COMPANIES NAME Must end with ‘Public Limited Company or PLC Must end with Private Limited Company or LTD (unless the company is unlimited) SHARE CAPITAL Must have a minimum subscribed share capital of  £50,000 and this must be paid up to at least 25% (at least  £12,500 must already have been raised by the issue of shares) No limit on share capital SHARES The company may offer its shares and debentures to the public (stock exchange) Cannot be advertised for sale or listed on the stock exchange DIRECTORS At least 2 One director COMPANY SECRETARY Must have suitably qualified company secretary There is no obligation to have a secretary, if there is one does not need to be qualified ANNUAL GENERAL MEETING Must hold every calendar year No obligation, of AGM, unless there is the decision to have one Disadvantages of forming a company In the first stage of the formation of a company must be prepared various documents, such as: memorandum of association and articles of association, a statement of capital and declaration of compliance, which must be delivered to the registrar of companies at Companies House. This stage is more laborious and complicated in comparison to the partnership and therefore incorporated companies will take longer to set up. The company also must have a unique name and gain unique number from Registrar of Companies. To set up the company there must be paid fees which make this type of company more expensive to set up. Also, there are extensive legal issues that have to be complied with. The various ongoing formalities must fill and publicity include the companys directors, secretary, also the financial accounts (which can be viewed by individual or other companies), the annual return of the company, and constitution. A company limited by shares, limited by guarantee or unlimited Limited by shares what means that the liability of the members (shareholders) of the company is limited by the memorandum to the amount capital originally invested. That will protect the shareholders private assets in the event of the company will announce bankruptcy. This kind of liability I would advice to Jack and Jills company as their private assets will not be involved in case of insolvency. Limited by guarantee means that the liability of shareholders is limited to the amount which they have undertaken or guaranteed to pay if company winding up. This kind of liability has normally been formed for educational or charitable purposes, and may or not have a share capital. If there is a share capital, the shareholders liability is for the amount of his shares and also to the amount of guarantee. Companies with no share capital normally gain funds by subscription or endowments. Unlimited means that there is no limit of the liability of the shareholders. Unlikely to the partnership the shareholders are not directly liable to creditors, but they are liable to the company. However, their liability is the same as partners. Three ways the Company Act 2006 has affected private companies In the Company Act 2006 many of the changes has applied to small private companies and its one of the most important rules is a simplification of the corporate regime. Some of these rules will be presented below: The company makes the decision if they wish to appoint the company secretary, as they are no longer obligated to do so. The shareholders written resolutions are no longer has to be unanimity. The simple majority of the eligible shares for ordinary resolutions, but 75% for special resolutions. The Act gives a possibility of reducing share capital by a company without obtaining the court order. Also reduces the period of filing the accounts from 10 to 9 from the financial year end. Documents required for registration 1. The memorandum of association This document is also known as an external constitution of the company, and determines key features of the companys status. From 1st of October 2009 the document was simplified and does not contain too much information, but it has to be prepared by those who wants to form an incorporation company under Company Act 2006. This must contain the subscribers names and signatures and if the company has a share capital, each of the member must have at least one share. 2. The articles of association (CA 2006 s. 18) The article of association (also known as internal constitution of the company) is the most important because it determines how company will be operate and regulates the rights between members, directors and company. The company has a right to make a changes to articles but it has to be done during the general meeting and the copy should be delivered, within 15 days from the day the changes were enacted, to the Registrar of Companies. The articles of association must be sign This document must be signed by each subscriber of the memorandum in the presence of a one witness and usually areas such as: Rights, duties and responsibilities of the directors; General meetings’ organization; Company’s members voting rights; Shares issues and transfers, shares’ classes, share certificates; Paying dividends and etc. To make easier preparation of this document for the companies, Companies House has prepared standard article of association and might be adapted by this company. All of these documents are available to download from Companies House website: http://www.companieshouse.gov.uk/; but also can be received from: company formation agents, accountants or legal stationers. 3. IN01 form The registration application (which contains the statement of compliance) The name of the company might be chosen, by those of setting up the company, of any name they wish, however there is certain rules which must be kept. The situate of the office of the company A statement of the objects of the company A statement of the limitation of liability of the company A capital clause stating the amount of the share capital which is authorised and the division of the share capital into shares of a stated amount Role of Registrar of companies The Companies Act 2006 makes the rules how the documentation should be filled in Companies House. The Registrar of Companies is responsible to record and control from companies either new or existing, to incorporate and dissolve companies, regulates formation of new companies and changes of existing companies, and also deals with any breaches of Companies Act. The section 1117 Companies Act covers where is stated the form, delivery’s manner, method of authentication, whether delivered electronically or as a paper document. The one of responsibility isto make the information available to the public. The names can be checked on Companies House website before formation, but also Registrar of Companies will check that if it is consistent with rules. The name of the company must be chosen very carefully, and the best way to make it easy to memorise is to make it as logical to the company activity as it possible. The name cannot be similar to other companies and should be too long as the long names are difficult to memorise. The words cannot be used but might be if the company will receive a written permission from the Department of Constitutional Affairs. These words are: Royal, Queen, King. The words used by a company without a permission such as: â€Å"Solicitor† or â€Å"Patent Agent†; might be treated as criminal offence. There is also words that company will need to get a written specified bodys permission, and they are: British, English, International, Group or Association. What is the effect of section 33 of Companies Act 2006 In the Section 33 of Companies Act 2006 that is provided information for a statutory contract between the company and its members; each member of the company and other companies. Over the years this contract have made a lot of controversy and confusion. The main question is if the contract might be enforced by members, to make sure that the right associated with them in another role such as the right given to a director who is also a member. In the members rights were breached, the company can be sued by them. Corporate personality and effect on Jack and Jill Corporate personality means that the company is treated as a legal entity and its personality exist independently from its owners, directors and shareholders. That means also that the company is liable for its own debts and can sue but it can be sued in its own name and also a company can buy and sell properties in its own name. The limited liability of the company means that the shareholders are not liable on its private assets for the debts belongs to the company (as the company and the owners are two separate entity). This might be one of main advantages to register the company by Jack and Jill with Companies House. In case of any problems with liquidity of the company, problems with paying companys liability such as loans or debenture, Jack and Jill private assets will be safe from creditors of the company. The case Salomon v A. Salomon Co. Ltd (1887) will illustrate and will be the best example the separate entity: Mr Salomon owned a boot-making business which was sold to another company A. Salomon Co. Ltd, which had been formed by the same Salomon. â€Å"There were seven members in the business: his wife, daughter and four sons who took one share each and Salomon himself who took 20,000 shares. The price paid by the company to Salomon was  £30,000 but instead of giving him cash, the business gave him 20,000 fully paid shares and  £10,000 in the secured debentures i.e. he lent the company  £10,000 which was owed to Salomon and  £7000 to unsecured creditors. The unsecured creditors claimed that as Salomon Co Ltd was really the same person, he could not owe money to himself and that they should be paid their  £7000 first. Held: The House of Lords stated that Salomon was entitled to the  £6000 and the unsecured creditors got nothing. The reason for this decision was that the company was to be regarded as a completely separate person in the eyes of the law from its members and its officers. The House of Lords thought it a completely irrelevant argument that Salomon was the leading shareholder in the company and that he could effectively control the destiny of the business.[1] Salomon v Salomon Co Ltd has been taken from book Nicholas Grier, â€Å"Company Law, Second Edition†, Scotland: W. Green Son Ltd, 2005) Bibliography: Nicholas Grier, â€Å"Company Law, Second Edition†, Scotland: W. Green Son Ltd, 2005 Websites used: http://www.bridgewest.eu/ http://startups.co.uk/ http://www.companieshouse.gov.uk http://www.companylawclub.co.uk/ 1 [1] Case Salomon v Salomon Co Ltd has been taken from book Nicholas Grier, â€Å"Company Law, Second Edition†, Scotland: W. Green Son Ltd, 2005)

Reflective Journal: Leadership and Management

The Business MilieuSkin Solutions is a clinic that offers medical esthetic services to treat various skin imperfections other than providing remedies for skin diseases. It employs 6 licensed medical estheticians and one doctor of dermatology to look after patients who come for consultation and treatment. Facilities include a spa, and three spacious rooms for performing extractions, facials, and treatments for skin nourishment.To meet the needs and the demand of clients who come to the clinic, investments in the latest technologies for improving and treating skin imperfections have been made. Tools of the trade consisted of state-of-the art equipment and lasers, and computerized analysis of skin imperfections among others to boast of. This was therefore one of the reasons why customers were satisfied that they always came back to avail of other services and even brought with them a friend or two to promote what the clinic could also do for them.The skin clinic has always been full of customers that keeping the clinic open from 9am to 8pm was not enough to accommodate all the patients that wanted to be checked in a day. Some patients would have themselves enlisted at the front desk first and then either wait outside the clinic or just check back a few hours after strolling around the mall. Some patients would also call in and make appointments for the following day so they could be sure that they wouldn’t have to wait in line when they come for consultation and treatment in the coming day.I was a medical intern in dermatology when all this was happening. I observed that many attempts to compete with the style and service of the clinic have been made by others to no avail. They often wondered about what business secret was held by the clinic that allows them to click with the public.My mentor was not only a cousin. She is the clinic’s owner and dermatologist; considered a prime mover in modern medical and cosmetic esthetics in our area. She was an in spiration to others in the same field as well as for others who were not into the esthetics business but who were like her, an entrepreneur who had a vision for her enterprise.What did you learn about yourself: Lessons on maturity?I somewhat felt anxious and uncomfortable by being a protà ©gà © of a cousin. Having a relative for a coach was sometimes embarrassing for we’ve known each other far deeper than anybody else did in the clinic and so, it was easy for the coach to point out my mistakes and weaknesses. I on the other hand would sometimes be too proud to admit them but knew deep inside that the coach was right and that I had to lower my pride and accept her corrections for it was, after all, for my own good.What I admire about my cousin was that she would raise the level of our relationship at work to one that is strictly professional. With this, I learned that her goal was always of maturity – of following a purpose and not the personality who runs with that p urpose. This valuable character I have learned to accept for myself as I observed her ways in leadership.In my case, it seemed that I had the tendency to follow a person for their personality as though I were a teenager. This, I felt was a mark of immaturity that had to be changed. But when one sees a personality’s purpose and follows that purpose, then he or she is likely to succeed. I realized then that being mature entails adopting marks of maturity, one of which is having a sense of purpose for it is this purpose that causes one to act and move a certain way and make decisions that will lead to success.What did you learn about yourself: Lessons on DeterminationAnother key lesson learned was that we don’t just have to be in the business. Rather, we should be in the business in such a way that we want to succeed and win. A winning attitude is what makes businesses flourish and sustain competence in a domain where there seems to be many competitors. I have learned to adopt that attitude and be determined to be and do the best, not settling for the mediocre.What did you learn about yourself: Lessons on DirectionAnother message that proved significant to me was a lesson involving direction. One may be determined to be the best in business but this determination is nothing if one does not have a direction for the business. Two things I realized that will set a person’s direction in life and business are purpose and focus.Purpose gives meaning to one’s life and trade. For the business to grow, advance, and prosper, purpose is an essential ingredient. Focus on the other hand leads the direction towards a goal. Running aimlessly will amount to nothing. Doing many things for the business without focus will not accomplish something laudable. But when one has purpose and focus in pursuing dreams, goals, and visions for the business, then a direction is charted, a course is followed, and a heritage is handed down.What did you learn about you rself: Lessons on HeritageLearning secrets of the trade is a privilege that ought to be cherished. Those closest to my cousin in the business besides me, were the six medical estheticians who have grown to love their work at the clinic. They have become skilled at customer relations, medical dealings, and the dos and don’ts of the industry. The good thing about our mentor is that she was a constant source of business knowledge. She shares with us a knowledge that is not temporary but one that will last. She expects that this knowledge will bear fruit and help establish businesses in the future that will hold the same philosophies.Prerequisites of heritage I then realized while receiving training include focus and the heart to communicate one’s vision. This vision includes making partisans and training them to become future leaders in their desired trade. The goal was to make replicas of one’s self or people who may be better than the mentor. With this, the idea is to focus by fervently believing in the vision and forgetting about things that does not run with this vision of success.I realized that in order for a heritage to be built, a leader must have conviction and learn to communicate something that he or she lives for, and then her protà ©gà © will follow. The second prerequisite was building the right foundation. Mentors are pillars of foundation who are present to support their charges. The values they treasure are priceless, indispensable and effective. Investing these in trainees will be beneficial for the success of the company.What did you learn about yourself: Lessons on DisciplineIn all these things, I also learned the value of discipline. There’s a cost for success. Strict training in all aspects of running the business is important to maintain business and financial health. What we want is to please both our human resources and then of course, our clientele. To achieve this, therefore, is to sacrifice time to learn a bout proper ethics of the trade, people skills and influence, the latest technology involved, and also learn about the rates for effectiveness of each technology and treatment.Mastering the treatment strategies, these tools, and providing customers with quality service is essential in making them come back to avail of more services. The quality of care rendered includes properly informing clients about their skin problems and providing them with treatment options to choose from. Educating them about what is best for their skin, and what alternatives they can do to maintain its health is also crucial for multiplying customers who will come for consultation in the future.What did you learn about yourself: Personal DiscoveriesI thought I knew what it took to run a successful business. I always thought that having the latest technology was enough to draw clients into the clinic. I realized later that this was not enough. Personal qualities also needed polishing and development. Professi onalism is first and foremost an aspect that needs to be learned, developed, and practiced. Without this, one’s business values will be poor and will cause the business to suffer.How did this activity strengthen your self leadership skills?The activity has allowed introspection to be done. As I examined myself regarding my feelings, thoughts, and motives about management and leadership, I found myself dealing with bad habits and replacing them with the principles I gained from training. I’ve learned to be more mature in dealing with people and in running a business. To chart the course of the business and believe that it can be achieved.I’ve learned how to develop and polish a vision with which I can run with and communicate to others so that they may be partners in making the business progress. I also learned the value of discipline and what needs to be done to keep a healthy and happy enterprise. I adopted all these and noticed changes in the way I conducted b usiness deals. Thus far, the feedbacks I’ve obtained were all positive. I am grateful for the lessons and insights I gained from the activity for it has made me a better person and now I swell with pride and would like to share these with others also.How did this activity improve your communication/interpersonal skills?People are important for it is they who can make or break a business. People skills need to be developed to help the business grow. With the strategies I gained from the activity, I was able to expand my people-making skills and increase my influence by maintaining rapport with clients. Being able to inform the clients properly and educating them about dos and don’ts in skin care helped enhance my skills in interpersonal communication. Keeping a smile, greeting customers, providing suggestions, and exchanging ideas with people around me proved a big help for enriching my communication skills.Rough roads, detours or roadblocksThus far, no hindrances or ba rriers have been experienced. The only thing I remember was that uncomfortable feeling on having a cousin for a trainer. But when this feeling is eliminated and pride is lowered to welcome corrections and good instruction, then everything will go well.Comments on personal effectivenessI’ve adopted the principles myself and utilized these every time I go to the clinic. Other than that, I also use the principles of people and influence to my advantage to polish my interpersonal communication skills. Feedbacks have been very positive and I use this as my yardstick for effectiveness.Was this a valuable experience for you? Importance of the ActivityOn the job training is an effective tool in developing a person’s character, business knowledge, and skills. The activity for me was a very valuable experience because I learned first hand what it takes to own and manage a business, be an effective and efficient business leader, and be an exemplary figure for others to follow. It helps if one works side by side with a leader. The leader’s character, life principles, philosophies, and strategies are learned immediately. Other than this, being with such people is encouraging because one gets stimulated to do the same things they do, think the same way they do, and compose one’s self as they do.Leaders are catalysts for improvement. Living by their example will make persons significant in their chosen field of activity in the future.

Evaluating the Socio Economic Impact of the Structural Adjustment Program Essay

These have left most SSA countries with acute balance of payments (BOP) disequilibria and an inability to service their debts to foreign bodies. In an effort to tackle the economic crises and to stimulate economic recovery, most African countries had to adjust and re-structure their economies. According to Dasgupta (1998), structural adjustment was seen as a fact of life. Thus in the 1980s, most African countries initiated economic policies which were sponsored by the World Bank and supplemented by the International Monetary Fund(IMF) in the form of stabilisation and structural adjustment programmes (SAP). Between June 1986 and July 1987 alone twenty one SSA countries went through World Bank/IMF SAP. Generally, SAPs entail policies designed by the world Bank/IMF aimed at improving the socioeconomic conditions of implementing nations by restoring economic stability and achieving long term growth through addressing structural weakness, and disequilibria in among others government budgets and external sector. More precisely, they involve the adoption and implementation of policies such as currency devaluation, trade liberalization, privatization, and removal of subsidies etc. hich are perceived as means of reversing the pervasive social and economic problems of developing nations. There has been a considerable amount of literature on the effects of SAP measures on less developed countries (LDCs) with no apparent consensus. On the one hand, international financial institutions (IFIs) maintain that SAPs are vital tools for economic recovery and sustainable economic growth. On the other hand , many economists and social scientists argue that SAP measures have led to recessions and poor standards of living in developing countries (Jauch 1999). Thus, the impacts of SAPs remain highly controversial. Even though there are disparities as to the exact effects of SAPs, it is generally accepted that they have far reaching implications for not only the macroeconomic environment of the countries concerned but society at large (Mosley and Weeks, 1993, Riddle, 1992, Stein, 1992, El-Tom, 1994, World Bank, 1994). It is against this background that this dissertation attempts to study and analyse the effects of SAP on the Nigerian economy. The choice of Nigeria as a case study is due to the fact that it has implemented one of the most radical structural adjustment programmes in Africa. Thus the question which posed is, what impact if any has SAP had on the Nigerian economy. Before we proceed, it should be emphasised that this dissertation subsumes IMF stabilisation programmes under World Bank structural adjustment programmes. The reason for this is that the two programmes are intertwined and this is done also for simplicity. . 2 Aims and Objectives This paper aims to explore the role SAP has played in the Nigerian economy. The major objective of the project is to offer a better understanding as to why, what and how structural adjustment program in Nigeria evolved. The primary focal point is to inspect the basis for and causes of the reforms, formulation and implementation processes, and the reform outcomes. The precise objectives of the dissertation are as follows: First, to provide a better understanding of the backgr ound to the economic crises in Nigeria that led to SAP * Second, to outline the objectives of SAP and the reforms implemented by the Nigerian government * Third, to analyse the macroeconomic and social consequences of implementing SAP in Nigeria 1. 3 Methodology and data To evaluate the effects of SAP on the Nigerian economy, the dissertation applies so-called ‘before-after approach’ which in its essence compares the values of selected variables in the period before a program is implemented to those of post-implementation. This approach has been one of the most widely used when evaluating SAP. One of the main advantages of the approach is that it can give an insight into whether structural adjustment improved key economic indicators. The major shortcoming of the methodology employed in this paper is that it assumes that all outcomes are the result of the programme itself and thus does not take into account the impacts of others factors. Another limitation is that it does not reveal the causes of variable changes. However, in spite of the fact that the before-after approach may have some degree of bias as an estimation procedure, it nevertheless, has inherent objectivity and is relatively easy to employ. The dissertation relies on secondary data – mainly World Development Indicators. In addition, various government publications are utilised. In the case of Nigeria, the lack of data and the quality of data available had a major constraint on the study. The data were often found to be unavailable and there were discrepancies in the different data sources.

What It Means to Be an Nco - 1184 Words

An NCO in my eyes is first most a leader, someone that has his soldiers back, there to protect and defend them, mentor them, and guide them into being NCOs themselves one day. As an NCO you need to be able to share your knowledge with younger soldiers, teach them the ways of the Army, let them not only learn from their mistakes, but from the ones we have made along the way as well. An NCO needs to be able to trust in his soldiers, but more importantly, soldiers need to be able to trust their NCOs. How can a soldier follow us into battle if they cannot trust us with the smaller things? How can a soldier turn to you in confidence with an issue that they have if they can’t even trust you, as an NCO, to have their back about something small†¦show more content†¦Because although we thought no one was watching, our soldiers were watching us. Now they have a different opinion of us as an NCO, as a leader, as their mentor. It may not be a big deal, but in the back of their mi nds they have that small amount of doubt in us and our decision making. Maybe one day it comes back around and they tell you hey remember that time when you ... or maybe they don’t come out and tell you, but they just hold it against you and talk bad about you behind your back. As an NCO, we need to be the best. Our integrity should not falter. NCOs are the backbone of the Army, and our Integrity should be our backbone. Integrity is defined as the quality of being honest and having strong moral principles; moral uprightness. Most people define integrity as doing what is right, legally and morally. To be willing to do what is right even no one is looking. Integrity is our moral compass. The Army mentions Integrity as one of its core values because it requires that you do and say nothing that deceives others. As your integrity grows, so does the trust others place in you. 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I was appalled to learn that leaders and raters are writing inaccurate and irrelevant NCOERs and making them less effective, because NCOs are not applying themselves. NCOs expect to be evaluated fairly, objectively, and want to be receiving an NCOER that will allow them to excel for further promotion and assignments. An NCO wants to have the faith that their rater is competent enough to give them a proper rating, good or bad, on their performance. The visual information career