Company Law of the UK Essay Example | Topics and Well Written Essays - 750 words

Company Law of the UK - Essay ExampleFrom the research it can be comprehended that the United Kingdom perhaps was the first country around the globe that simplifies the registration demonstrate for investors limit their liability and the obligations in the event of insolvency. The discretionary powers allocated to the Board of Directors to sort push through issues in melodic line with the provisions of go with constitution / company law. It would not be out of place to mention here(predicate) that the UK has given a role model to other European Dynasties, Commonwealth Nations. The aims and objectives are to introduce such role model to woo the investors from all over the world to invest enceinte in a profitable business venture / thriving business avenues to make more and more money. The powers confer to the company may have their own parameters in terms of rights and obligations under the UK laws to comply. Corporate Company has the option to advertise capital for their busi ness in shape of equity finance, where the company has to off load its shares to general humanity through Stock Exchange. The company confers number of rights to share holders in terms of a) voting b) dividends c) return of capital on redemption / liquidation d) Preferential rights for future shares. The corporate concerns keeps close repo with share holders in devil ways a) to inform share holders of the decision taken by the company through prospectus that contains muster out details b) financial assistance to purchase its own shares. 5. The share holders may have the access to shore loan facilities against pledge of companys shares on a fixed / floating rate of spare-time activity as the case may be, to be paid through monthly, quarterly, half yearly, yearly installments or amplify payments as decided by the approving authority. In the event of default banks / financial institutions may jug off / auction the mortgaged assets of the company after inviting bids from the pros pective bidders through esteemed print / electronic medias6. However, court provide protection to the company / or set aside unfair transaction in relation to disposing off the assets of the company by the banks / financial institutions towards appropriation of their outstanding liabilities. If a company fails to make for its loan obligations on due dates, the administrator comes to manage the affairs of the company as per UK insolvency law. If all out efforts of the administrator proved futile, the administrator starts the process of liquidation. The administrator disposes of the moveable / immoveable assets of the company to satisfy the claims of the creditors and and so strike down the name of the debtor from its register7. Shares issued to the share holders can easily be transferred or accustomed off as and when required. Holding the shares of a company means that a share holder universe a member of the company can enforce the provision of the constitution of the company in both(prenominal) ways a) against the company or other members of the company b) value of shares (nominal / at par) determines the share holders liability towards salaried off debts of the company in case of insolvent liquidation8. The company usually offers their existing share holders a declamatory number of shares from its common stock or preferred stock. This gives the rights to the share holders (other than bidder) to convert its acquired shares into a large number of common shares. This form of transaction is considered shareholders rights plan since it empowers the shareholders