United Kingdom company law Wikipedia. The United Kingdom company law regulates corporations formed under the Companies Act 2. Introduction There is 1 Name by which Salvation is offered JESUS. Not YHWH, Yahweh, Yehoshua or Addonay not Horus, Krishna, Mithra, Jupiter or Marduk. Also governed by the Insolvency Act 1. UK Corporate Governance Code, European Union. Directives and court cases, the company is the primary legal vehicle to organise and run business. Tracing their modern history to the late Industrial Revolution, public companies now employ more people and generate more of wealth in the United Kingdom economy than any other form of organisation. The United Kingdom was the first country to draft modern corporation statutes,1 where through a simple registration procedure any investors could incorporate, limit liability to their commercial creditors in the event of business insolvency, and where management was delegated to a centralised board of directors. An influential model within Europe, the Commonwealth and as an international standard setter, UK law has always given people broad freedom to design the internal company rules, so long as the mandatory minimum rights of investors under its legislation are complied with. Company law, or corporate law, can be broken down into two main fields. The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code. Corporate governance in the UK mediates the rights and duties among shareholders, employees, creditors and directors. Since the board of directors habitually possesses the power to manage the business under a company constitution, a central theme is what mechanisms exist to ensure directors accountability. UK law is shareholder friendly in that shareholders, to the exclusion of employees, typically exercise sole voting rights in the general meeting. The general meeting holds a series of minimum rights to change the company constitution, issue resolutions and remove members of the board. In turn, directors owe a set of duties to their companies. Directors must carry out their responsibilities with competence, in good faith and undivided loyalty to the enterprise. If the mechanisms of voting do not prove enough, particularly for minority shareholders, directors duties and other member rights may be vindicated in court. Of central importance in public and listed companies is the securities market, typified by the London Stock Exchange. Through the Takeover Code the UK strongly protects the right of shareholders to be treated equally and freely trade their shares. Corporate finance concerns the two money raising options for limited companies. Nightwish Once Limited Edition Amazon. Download The Magic Of Thinking Big Torrent more. Equity finance involves the traditional method of issuing shares to build up a companys capital. Shares can contain any rights the company and purchaser wish to contract for, but generally grant the right to participate in dividends after a company earns profits and the right to vote in company affairs. A purchaser of shares is helped to make an informed decision directly by prospectus requirements of full disclosure, and indirectly through restrictions on financial assistance by companies for purchase of their own shares. Debt finance means getting loans, usually for the price of a fixed annual interest repayment. Sophisticated lenders, such as banks typically contract for a security interest over the assets of a company, so that in the event of default on loan repayments they may seize the companys property directly to satisfy debts. Creditors are also, to some extent, protected by courts power to set aside unfair transactions before a company goes under, or recoup money from negligent directors engaged in wrongful trading. If a company is unable to pay its debts as they fall due, UK insolvency law requires an administrator to attempt a rescue of the company if the company itself has the assets to pay for this. If rescue proves impossible, a companys life ends when its assets are liquidated, distributed to creditors and the company is struck off the register. If a company becomes insolvent with no assets it can be wound up by a creditor, for a fee not that common, or more commonly by the tax creditor HMRC. HistoryeditCompany law in its modern shape dates from the mid 1. In medieval times traders would do business through common law constructs, such as partnerships. Whenever people acted together with a view to profit, the law deemed that a partnership arose. Early guilds and livery companies were also often involved in the regulation of competition between traders. As England sought to build a mercantile. Empire, the government created corporations under a Royal Charter or an Act of Parliament with the grant of a monopoly over a specified territory. The best known example, established in 1. British East India Company. Queen Elizabeth I granted it the exclusive right to trade with all countries to the east of the Cape of Good Hope. KingdomUnderFire_CircleofDoom/932035_20070926_screen001.jpg' alt='Kingdom Under Fire Pl' title='Kingdom Under Fire Pl' />Corporations at this time would essentially act on the governments behalf, bringing in revenue from its exploits abroad. Subsequently, the Company became increasingly integrated with British military and colonial policy, just as most UK corporations were essentially dependent on the British navys ability to control trade routes on the high seas. The directors of such companies, however, being the managers rather of other peoples money than of their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own. Like the stewards of a rich man, they are apt to consider attention to small matters as not for their masters honour, and very easily give themselves a dispensation from having it. Negligence and profusion, therefore, must always prevail, more or less, in the management of the affairs of such a company. It is upon this account, that joint stock companies for foreign trade have seldom been able to maintain the competition against private adventurers. A Smith, An Inquiry into the Nature and Causes of the Wealth of Nations 1. Book V, ch 1, 1. A similar chartered company, the South Sea Company, was established in 1. Spanish South American colonies, but met with less success. The South Sea Companys monopoly rights were supposedly backed by the Treaty of Utrecht, signed in 1. War of Spanish Succession, which gave the United Kingdom an assiento to trade, and to sell slaves in the region for thirty years. In fact the Spanish remained hostile and let only one ship a year enter. Unaware of the problems, investors in the UK, enticed by company promoters extravagant promises of profit, bought thousands of shares. By 1. 71. 7, the South Sea Company was so wealthy still having done no real business that it assumed the public debt of the UK government. This accelerated the inflation of the share price further, as did the Royal Exchange and London Assurance Corporation Act 1. South Sea Company from competition prohibited the establishment of any companies without a Royal Charter. The share price rose so rapidly that people began buying shares merely in order to sell them at a higher price. By inflating demand this in turn led to higher share prices. The South Sea bubble was the first speculative bubble the country had seen, but by the end of 1. As bankruptcies and recriminations ricocheted through government and high society, the mood against corporations, and errant directors, was bitter. Even in 1. 77. 6, Adam Smith wrote in the Wealth of Nations that mass corporate activity could not match private entrepreneurship, because people in charge of other peoples money would not exercise as much care as they would with their own. The Bubble Act 1.