The UK company law regulates companies formed under the companies act 2006. The UK company law has two parts. Corporate Governance in the UK manages the duties and rights of the employees, shareholders, directors and creditors. Usually the Board of Directors within a company has the power to manage and control the company, this also ensures that the Director’s accountability within the company.
If you’re preparing to specialise as a corporate lawyer, getting help from a private law tutor can be helpful, in supporting your law studies and exams. Let’s look in to 4 key things that you must know, regarding UK company law.
Formations of companies are done in various ways.
Unlimited companies are responsible for all debts and losses under Private law.
Limited companies are divided in two types
Limited by guarantee
Limited by shares.
The later being most poplar for most general businesses.
Director’s responsibility under the law
Company director must follow the rules, shown in its articles of association
Keep company records and report changes
File accounts and Company Tax Return
Inform other shareholders if the Director might personally benefit from a transaction the company makes
Pay Corporation Tax
Register for Self Assessment and send a personal Self Assessment tax return every year
General meeting is held normally once a year, also known as AGM or annual general meeting. This is done so that, the company can elect new board member/s, making important announcement and decisions regarding the company and its past performances, future plans, etc.
Generally people or organisations who buys shares in a company. The rights of shareholders can be different based on types of share they hold within a company, which is defined within shareholder’s agreement.
UK company law gives the shareholders ability to
Remove the board of directors with a simple majority of votes
Change the company constitution with a three quarter vote (unless a higher figure is in the constitution)
Wind up or liquidate the company with a three quarter vote
Veto any sale of a significant percentage of company assets
Veto by a majority any restriction on ability to freely trade their shares, such as a poison pill
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