Aim
To
develop knowledge and understanding of the overall
legal framework within which an accountant operates.
Objectives
On completion of this paper candidates should
be able to:
-
identify the essential elements of the legal
system, including the main sources of law,
and explain its operation
-
explain the essential principles relating
to the formation, content and remedies for
the breach of contracts
-
explain the rules of agency and the law
relating to partnerships
-
describe the different types of company
and explain the rules relating to financing,
management and administration
-
understand the law relating to employment
relationships
-
demonstrate the skills expected in Part
2
Content
The English legal system court structure
and the administration of justice, case law
and legislation, precedent, statutory instruments,
statutory interpretation.
Impact
of European Community legislation.
General
principles of the law of contract formation,
offer, acceptance, consideration, intention
to create legal relations, terms: exclusion
clauses and statutory control, breach, remedies.
Agency
and partnership creation of agency, authority
of the agent, formation of a partnership, internal
regulation, relations with outsiders.
The
company form distinguished from partnership,
private company and public limited company,
consequences of separate legal personality.
The
formation and constitution of the company registering
a company, memorandum and articles of association,
contractual capacity, statutory books, records
and returns.
Capital and financing of companies share
capital, ordinary and preference shares, loan
capital, debentures and company charges, capital
maintenance, dividend law.
Management
and administration of a company directors,
appointment, termination of office and disqualification,
duties (especially duty of care), powers; company
secretary, appointment, duties, powers; auditors,
appointment, removal, resignation, duties, powers.
Company
meetings annual general meetings, extraordinary
general meetings, resolutions.
Majority
control and minority protection unfair prejudice,
just and equitable winding up, DTI investigations.
Employment
contracts of service and for services, unfair
and wrongful dismissal, redundancy, discrimination.
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