Nobody downloaded yet

UK Company Law - Essay Example

Comments (0) Cite this document
As the Institutional shareholders and the public grow angrier and angrier over the almost unimaginable riches that FTSE bosses are ranking in…it felt like the ‘shareholder spring’ had finally sprung’ Introduction Despite the fact that action of a director cannot be interfered by the shareholder, under UK Companies Act, a minority shareholder can initiate prejudice action where he can sue the majority shareholders who manage the company or can initiate a derivative action where the shareholder can sue the directors on behalf of the company…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.3% of users find it useful
UK Company Law
Read TextPreview

Extract of sample "UK Company Law"

Download file to see previous pages However, the section 172 of CA 2006 is itself a novelty which includes an explicit duty to promote the growth of the company successfully. Further, it also contains a new notion of “open-minded or enlightened shareholder value”. Whether a director of a company can be held accountable for any fiscal losses to the company due to their wrong decisions by the shareholders of the company? Under the UK Companies Act, shareholders including minority and institutional shareholders can now initiate legal action against erring directors or directors to whom hefty pay packages are being offered without relevance to their performance through derivative actions or through unfair prejudice clause. As the Institutional shareholders and the public grow angrier and angrier over the almost unimaginable riches that FTSE bosses are ranking in, the sudden spurt in shareholders’ activism in UK in recent days is being felt like the ‘shareholder spring’ had finally sprung’. ...
Institutional Investors and Minority Shareholder’s Activism in UK-An Analysis Under section 173 & 174 of the Companies Act 2006, though the directors of a company are appointed and ousted by shareholders, but the directors do not have any duty of care to any individual shareholder. It is to be observed that the duty of care by the directors is to the whole of the company’s stakeholders and is not applicable to a shareholder only to the magnitude of their investment held in the company, and thus the director’s duty of care is confined to the capital and not to any individual per se. Further, earlier, the shareholders are having every right to pass resolutions at a general meeting to restraint directors of a company but such resolutions are not binding on company directors, and it is advisory in nature only. For company directors, maximising the wealth of the shareholders is not a legal mandate but only an idealised norm of conduct. The directors are not expected to answer only to the shareholders but also accountable for other stakeholders of the company like creditors, customers, employees, local community and suppliers. (Haynes, Murray & Dillard: 57). Under UK corporate law, there exist no explicit defence or business judgment rule as a safe harbour provision for commercial decisions taken by the directors of a company. However, the absence of any explicit provision in this regard does not leave the corporate directors in UK in the lurch. Thus, as per Justice Austin, in the absence of any explicit provisions under the UK Companies Act as regards to the business judgement rule, but the shareholders may avail safe harbour provisions through the ratification of director’s decisions by the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“UK Company Law Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
UK Company Law Essay Example | Topics and Well Written Essays - 2500 words. Retrieved from
(UK Company Law Essay Example | Topics and Well Written Essays - 2500 Words)
UK Company Law Essay Example | Topics and Well Written Essays - 2500 Words.
“UK Company Law Essay Example | Topics and Well Written Essays - 2500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Company Law of the UK

...No: Company Law Company Law of the UK deals with the Corporations that formed under the Companies Act 2006. The corporations also governed under the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and the Precedence of the competed court of law1. Under the mentioned acts, directives and the court precedence, the company is a legal establishment to run the business. The modern history of Industrial Revolution in the UK empowers public companies in employing and generating funds, to boost up the economy of the United Kingdom rather than...
3 Pages(750 words)Essay

Uk Company Law Directors Duties

...? UK-COMPANY LAW – DIRECTOR’S DUTIES- AN ANALYSIS Customarily, director’s duties in UK have been divided under the head self-regulatory and non-regulatory mechanisms. Under regulatory approach, directors are required to comply with their obligations and duties, which had been by chance, adhering to the statutory duties, fiduciary duties, common law duties, which had been inflicted on directors under various laws ,which are mentioned below ;1 “Companies Act 2006” “Company Director’s Disqualification Act 1986” “The Financial Services and Insolvency Act 1986” “The Financial Services and Markets Act 2000” “The Insolvency Act 1986” There is a legal duty on the director which requires him to act in the best interest of the stakeholders... and the...
10 Pages(2500 words)Essay

A New Legislative Structure for Company Law in UK

...? Analysis of “Section 31 of the Companies Act 2006 is a retrograde step in terms of a company’s capa The provision re-asserts the ultra vires problem encountered by creditors in cases such as Ashbury Railway Carriage & Iron Co v. Riche (1875) LR 7 HL 653 Analysis of "Critically evaluate this statement with reference to the changes wrought by the Companies Act 1989 and Companies Act 2006 in relation to company constitutions. " Introduction A new legislative structure for company law was introduced on 8 November 2006 in the United Kingdom. Further , the so called the UK Companies Act 2006...
10 Pages(2500 words)Coursework

Critical evaluation of the UK governments' reforming the law of company charge registration

...?Critical evaluation of the UK governments’ reforming the law of company charge registration Introduction The company charge is a provision under theCompanies Act 2006, whose passage and enforcement marked the end of serious debate regarding reforms of English personal property security (PPS) law.1 Ideally, the new company charge provisions out of date and inadequate. Since 1998, the issue of reforms has been debated especially following the commencement of the company law review project, however, the issue of these reforms has its roots from as far back as the early 1970s,2 although the securities...
20 Pages(5000 words)Essay

Company Law in the UK evaluate the concept of the UK company law that singles out a registered company as a separate legal entity. This will be achieved by reflecting on a well-known case of Salomon v Salomon & Co (1897), in which this law concept was used to rule the case. Company registration, a fundamental requirement of the company law act, secures a company the right to engage in business transactions within the privileges and limitations that the company law offers. Companies are often registered either by a single person or by group partnership....
5 Pages(1250 words)Assignment

Company Law - English law

...(a) It was established in Salomon v A Salomon & Co [1897 that 'The company is at law a different person altogether from the subscribers. Nor aresubscribers as members liable, in any shape or form, except to the extent and in the manner provided by the [Companies] Act.'2 It is a general principle of English law that it is not possible in the absence of agency, a trust relationship or wrongful trading to hold one person liable for the debts of another.3 However, like most common law principles and judicial interpretations it is a rebuttable presumption which must give way to a statement to the contrary 'in clear and unequivocal language'4 by Parliament....
10 Pages(2500 words)Case Study

Company Law, Business Law

...May 23, 2006 Academia Research Topic: Exam questions for Business Law (Company Law Adam owns 11% of the shares in a medium-sized company, andthat company owns a chain of fast food outlets around Wales. Apparently, the board of directors has decided to implement two recent special resolutions to alter the articles of association. Additionally, Adam is uncomfortable with the decision of the board of directors because the board of directors no longer needs to obtain the approval of the shareholders for certain high-value transactions. Mostly, the majority rule usually prevails when voting over certain issues pertaining to the company;...
3 Pages(750 words)Essay

UK Company Law Assignment

...Company Law Assignment After several years of conducting business, in cosmetics, as a sole trader; Brad married Angelina. Brad is a sole trader and he had sought Angelina's help, due to her superior knowledge of cosmetics. A person who does business on his own is a sole trader1. He owns the assets of the business and is solely responsible for its liabilities. All the business activities are performed by the sole trader, and this person can enter into contracts for the purpose of business2. Presumed authority is the authority that a third party assumes the agent to possess, notwithstanding the fact that such authority is absent. It arises, whenever, a principal's words or conduct apparently denotes the presence of such authority... in the...
9 Pages(2250 words)Essay

UK Company Law Shareholders and Directors

...) In absence of any express words in the articles requiring that a director who takes a less active role in the company shall be entitled a salary three times less of his / her monthly, she is entitled for the whole pay of 30,000 pounds. (2) In absence of any special resolution, which is passed at a general meeting o a company by a majority of 75% of members present and entitled to vote, the directive of the directors to the payroll staff to pay S 10,000 pounds is unjustified. In this case S can challenge the decision of the directors in a court of law if they adamantly refuse to pay her 30,000 pounds, which she is entitled to be paid till the meeting is convened, and resolution passed...
8 Pages(2000 words)Essay

Business Law (company law)

...liability company business structure has generally less precedent in terms of case laws. This is due to the fact that it is a relatively newer structure. Form of Limited Liability Company I would advise them to form a partnership form of limited liability Company for the reason that there are three members involved. Thereafter, is would be advisable for them to file Form 8832 which would get the elected as a corporation. Naming of the limited liability company They could definitely retain their current business name if they so desire provided certain rules are observed. The rules that govern the naming of a limited liability company...
8 Pages(2000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic UK Company Law for FREE!

Contact Us