Business Law BMAIE003 17th March 2013
Assessment 2 - Forming a Business
Individual Consultant’s Report (2500 Words)
Feed forward Document Based upon Draft Submissions
I require a copy of your Consultant’s Report to be upload using that Final Submission upload button which is located in the relevant Moodle Portal Area before the deadline. – try not to leave it until the last possible date !!!!!!!!!!!!!!.
Please save your word document using the agreed formula: You should save your file using the following protocol – Surname followed by capital letter of first name followed by the word”final”.
Thus when I look at it, it should look this this – ...view middle of the document...
You have been asked to act as a company promoter and to this end there are forms (Company Constitution and Memorandum of Associate) to find and fill out. NB I have made available an IN10 Form. Do your best to fill out the form – you may have to make addresses , Co Name etc as you think fit. Remember it is the filling out of the form which is important so do not leave areas blank. Co. Name, Rules in relation to the conduct of meeting (AGM) and most important the allocation of shares, the voting rights attached to the shares and the distribution of profits. These should also be included in an Appendix.
Ensure that you understand your responsibilities and liabilities as a “Company Promoter” – You should set these out very briefly as Appendix 2 (this was poorly understood if the drafts are to be understood by me)
This is a legal advice it should not contain generalised business / entrepreneurial advice
The Mark Scheme is based upon the student’s ability to deal with and correctly handle, the relevant course learning outcomes
Advice on possible Business Legal Organisation type.
Bearing in mind your assessment of the relevant “desiderata” of the Trustees you should briefly make explicit the advantages and disadvantages of the relevant Business Models available i.e (i) an Ordinary Partnership, (ii) a Limited Partnership (ii) A Limited Liability Partnership (iv) a Private Limited Company (limited by Shares or Guarantee) (v) a Private Unlimited Company (vi) A Public Limited Company
Try to avoid setting out a checklist. If stressed for words go straight to the business Model which is the most appropriate in your opinion – remember you are entitled to express a preference provided you fully set out your reasoning
There are a number of issues raised by the trustees, (The following list is not exhaustive) - The importance of Limited Liability, The importance of “perpetual succession” The “trading” requirement, The fact that trading will be in the retail sector, The need for a “Corporate feel”, The desire to be a “Public Corporation” – remember that certain consequences follow from this particular model which may not have been anticipated by the prospective Director, The desire for a particular “stakeholder” inclusive approach, The desire that the prospective Directors should be able to guard or...