BUSINESS STRUCTURES AND REGULATIONS (2014-2015)

ASSESSMENT PACK

This document contains the following:

•    Assessment case study pack for assessments 1&2
•    Assessment briefings and questions
•    Module descriptor
•    Grading Criteria Spreadsheet

All other relevant information detailing the learning and teaching, timetable/weekly teaching schedule, assessment strategy and requirements such as study skills, weekly formative self-assessment materials, topic by topic diagnostic testing, specific corporate and school materials such as academic misconduct, VLE and advice on mitigating circumstances can be found within the module handbook on blackboard. Students are therefore encouraged to familiarise themselves with the information contained therein.

CASE STUDY PACK FOR ASSESSMENTS 1 AND 2

INSTRUCTIONS
The following fictitious documentations vis a vis the scenario comprises the background materials for BOTH your assessments in this module. The assessment briefing and questions are all related to these documentations and the scenario. The assessments can be found at the end of this case study pack.

ASSESSMENT 2

GENERAL INSTRUCTIONS
This is the second piece of coursework in the module. It is worth 60% of the module.
THIS ASSESSMENT CONTAINS 2 QUESTIONS. BOTH QUESTIONS AND PARTS THEREIN MUST BE ANSWERED.

MAXIMUM 3,600 WORDS (excludes footnotes, references, bibliography and attachments, graphs, images and addendums)

Hand-in Deadline: Between 9am Monday 23 March 2015 and 4pm Friday 27 March 2015

Hand-in Process: Through Blackboard TurnitIn ONLY. The first page of the coursework must be the completed assignment FRONT SHEET which is made available to students within the module assessment folder on blackboard as well as in the module handbook.

Referencing: Students must utilise Harvard Style of referencing.

Learning Outcomes to be achieved:

After completing the module the student should be able to:

•    Identify and critically compare the main business organisational structures within England and Wales in terms of legal personality, status, formation and administrative requirements

•    Research and analyse the decision making processes within various organisations and critically assess the legal requirements surrounding such processes

•    Demonstrate through oral presentation, reasoning skills and the ability to apply to a realistic scenario, company law principles.

•    Appraise the concept of corporate governance and its importance, appreciating the role of the Companies Acts and precedents in creating a legal system for companies.

•    Examine the various duties, rights and forms of liability within the business context

Grading/ Marking Criteria: Students are requested to familiarise themselves with the criteria. The document is located within the module assessment folder on blackboard as well as at the end of this document.

ASSESSMENT 2 BRIEFING AND QUESTIONS
IN ADDRESSING THE ISSUES RAISED, STUDENTS ARE ADVISED TO TAKE CAREFUL CONSIDERATION OF THE ALLOCATION OF MARKS IN EACH QUESTION AND PARTS THEREIN.

Weeds Farm Units Limited

Question 1
Natasha Bennett has confirmed that her investment in the Barn with Weeds Farm will be in Weeds Farm Units Limited (‘WFU’). This investment is to be treated as separate and distinct from her investment in Bennett & Ritchie Weddings Limited. Natasha has confirmed that the only asset held by WFU is the Barn.

The following additional information has also been provided:
•    Director: Natasha Bennett will be appointed a director of WFU and will be awarded a fixed-term service contract of a minimum period of three years.

•    Assets: WFU’s most recent audited accounts show it has net assets of £85,000. Following her appointment as a director of WFU, Natasha Bennett will transfer assets (equipment and vehicles worth approximately £20,000) in exchange for 20,000 fully paid ordinary shares of £1 each in WFU.

Advise Natasha Bennett with regard to the following issues:

(a) what documents and formalities will be required to comply with the Companies Act 2006 in respect of her appointment as a director, including the award of her service contract.
(25 marks)
(b) the transfer by Natasha of her assets to WFU.
(25 marks)

(Total: 50 marks)

Question 2
Following discussions with Andrew Gowns, it transpires that Edward Gowns has been suffering from stress and has consequently been neglecting his duties both in the day-to-day running of the farm and in relation to WFU. Unbeknown to the other directors of WFU, Edward has failed to arrange payment of a number of suppliers of materials used to renovate the Barn. These creditors are now pressing WFU for payment and in the last five days WFU has been served with statutory demands by two of them for payment of £1,000 and £1,500 respectively. WFU may not have sufficient funds to settle all its current creditors’ claims. Andrew has called an emergency meeting of the Board of WFU to discuss the consequences of failing to pay outstanding invoices.

In addition, Edward’s personal finances are also in a precarious state and his personal creditors are pushing for payment of debts.

Advise WFU with regard to the following issues:

(a) the liability of the directors to contribute to the assets of WFU in the event that WFU is unable to pay its trade creditors.
(30 marks)
•    (b) the effect on Edward’s position as a director if he were made bankrupt.
(20 marks)

(Total: 50 marks)

Recommended Reading & Required Reading

Required Reading
Dignam & Lowry (2014) Company Law, 8th ed., Oxford University Press, Oxford

Recommended Reading
Davies (2008), Gower and Davies Principles of Modern Company Law, 8th Ed,
Sweet & Maxwell
Hannigan ( 2009), Company law 2nd Ed , Oxford University Press
Mayson, S. French, D.  & Ryan, C. (2013-14) Company Law , Oxford University Press
Ervine, C. (2009-2010)  Core Statutes on Company Law, Palgrave Macmillan
Hicks & Goo (2008) Cases and Materials on Company Law Oxford University Press
Ridley, A. (2009), Key Facts: Company Law, Hodder Education
Morse, G. (2006), Partnership Law, Oxford University Press

Database – Westlaw – Vital resource for weekly study of statutory provisions (Companies Act 2006 alone runs into several hundred pages!) and digest of all case law on the subject matter going back over 100 years!
Journals
Business Law Review
New Law Journal
Solicitors Journal

Web Resources
www.legislation.gov.uk
The National Archives website includes the text of all United Kingdom legislation. For Acts of Parliament, some updating has been done to incorporate amendments made since enactment, but only amendments in force up to the end of 2002 have been dealt with in full. Statutory instruments are shown only in the form in which they were originally enacted.
www.companieshouse.gov.uk
The Companies House site gives practical information about the registration of companies and filing returns.
eur-lex.europa.eu
The European Union’s EUR-Lex site includes the text of all EU legislation, much of it in consolidated form incorporating all amendments.
fsahandbook.info/FSA/index.jsp
The full text of the FSA Handbook is here, including the listing rules (LR), prospectus rules (PR), and the disclosure rules and transparency rules (DTR).
www.thetakeoverpanel.org.uk
The Takeover Panel site includes the text of the City Code on Takeovers and Mergers.
www.frc.org.uk
The Financial Reporting Council’s website includes the texts of accounting standards (FRSs and SSAPs), the ASB’s newsletter, Inside Track, APB Ethical Standards for Auditors, and auditing standards.
Company Law Club (contains free information and company registration service plus access to primary and delegated legislation and source of free newsletters and announcements of updates to company law – requires name / email address and password): www.companylawclub.co.uk
Department of Enterprise, Trade and Investment (includes access to Companies Registry): www.detini.gov.uk
Insolvency service: www.insolvency.gov.uk
Office of Fair Trading: www.oft.gov.uk
Office of Public Information: www.opsi.gov.uk

www.berr.gov.uk

Access to Specialist Requirements
None