Sheridan, Rabina and Darren have decided that they have sufficient complementary skills and sufficient capital to conduct their own business together. They all want to be involved in day to day business activity and they want to keep control strictly limited to themselves, but they also want to place a limit on the amount of capital they can lose. They have been told that there are several different ways in which their business could be organised, but they are currently undecided as to which. This is where there is a limit on how much Capital can be lost. If the company goes bankrupt, only the value of the shares is lost.
The management’s possessions are completely independent to the company so any money that needs to be recovered does not come from the directors. It is quite high risk due to the amount of Capital required to start it up. Partnership. The terms of the partnership are agreed to beforehand and any later profits made from the business are divided between the partners. They are easy to register and do not require vast amounts of paperwork. An example of this is Hewlett-Packard . A limited Liability company must have at least one director, one company secretary (whose responsibility it is to submit the accounts) and one shareholder.
The company can have a maximum of 50 shareholders. The profits are taxed via Corporation tax and they have to submit and prepare Profit and Loss accounts + balance sheets to Companies House (an agency of the government). A partnership can have up to 20 partners at one time. As the partnership form is classed as ‘self employed’, they are taxed income tax. The partners are responsible for any debts the company falls into. Unlike Limited Liability, the partners can lose their private possessions. Saloman lent the company i?? 10,000 but it went bankrupt. The debts were i??
8,000 and the assets that the company still owned were worth i?? 6,000. The people who were owed money claimed that the i?? 6,000 worth of stock should be used to pay back the i?? 8,000 debt due to them, not to pay back the i?? 10,000 due to Salomon himself. The end result was that Saloman was considered a distinct entity to his company. He was then granted access to the company’s assets seeing as the loan was in fact a legitimate one. Limited liability directors can give loans to their company’s and because of precedent, if the company goes into liquidation, their loan can be reclaimed from the company’s assets.
All of these requests fall under a limited liability company. Condition b) refers to the shares in the business. They can have complete control by selling the shares to themselves. Condition c) is the limited liability. They will only lose the value of their shares and none of their private possessions. “All relationships between individuals and companies are governed by the ‘rules’ of precedent and statutory interpretation. However, these rules only appear to impose constraints on what judges may do.
The truth is that judges can always find ways to develop the law in the directions they desire. ” Discuss the view quoted above. Include in your answer a comparison between the role of judges and that of Parliament in developing the law. Judges are there to adjudicate on disputes in a fair, unbiased way, applying the legal rules of this country (Martin. J. The English Legal System). The Judicial Appointments Commission listed five qualities that a judge should have (Martin. J. The English Legal System):When considering these, it is evident that judges are not chosen flippantly.
There is a great deal of protocol and procedure that they must keep to when they are learning and arguably even more so when fully qualified. Judges are in place to maintain the law in a just manner. It is because we give them this position of power that they can make these crucial decisions for the benefit and safety of our society. It is very easy to look at a case later and say that a judge has made the wrong decision by not following precedent. However at the time; the judge has to make a decision which is going to be subjective in some cases, even if the law is followed.