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Company Law

Aim

The aim of this unit is to provide learners with a knowledge and understanding of the law on companies and the skill to apply the rules particularly in business situations.

Learning outcomes and assessment

LO1 Understand the nature of a company

1.1 explain the concept of corporate personality and lifting the veil

1.2 analyse the advantages and disadvantages of incorporation

1.3 describe the law on promoters and preincorporation contracts

1.4 explain the requirements for registration and commencement of trading

LO2 Be able to draw up the constitution of a company

2.1 apply the requirements for the memorandum to a given scenario

2.2 draw up the articles of association in a given scenario

2.3 evaluate the doctrine of ultra vires and its effect

2.4 explain the contents of a prospectus and listing particulars

LO3 Understand share capital and capital maintenance

3.1 explain the different types of capital

3.2 assess the law on issue of shares, class rights and dividends

3.3 discuss the law applicable to capital maintenance and insider dealing

LO4 Understand about shareholders, directors, charges and insolvency

4.1 describe the duties and powers of directors

4.2 explain the rules on the different types of meetings

4.3 discuss the law on minority protection

4.4 evaluate the rights of shareholders and debenture holders

4.5 discuss rights on liquidation.