The Criminal Justice Act 1993 (CJA) and the Financial Services and Markets Act 2000 (FMA) does not sufficiently regulate insider dealing infringements in the UK."Discuss
Introduction Insider dealing is carried out where someone with confidential information about company shares, with the knowledge that the information would affect the price of the shares, deals in the shares with a view to making profit or avoiding a loss before the information is being made public.[1] Insider dealing practise is not a fresh topic. There are many suggestions, particularly in the UK, that the history of this practise is as old as the Stock Exchange itself.[2] Rider and Ashe argue that: '... [t]he main convincing justification for controlling insider dealing is that it has a perceived, adverse impact on confidence ... it will alienate investors and potential investors, with adverse consequences for society as a whole.' [3] By recognising 'society as a whole' as the victim, insider dealing is therefore not as what some has argued - a victimless crime. It is essential to guarantee the successful working of the stock exchange, and since insider dealing destroys the public confidence over its fairness, insider dealing is thus made illegal.[4] Until 1980, there had been no statutory legislation governing insider dealing in the UK. One of the reasons for this was due to the verdict in Percival v Wright[5] that a director's fiduciary duties are owed only to the company and not to individual member. UK insider dealing legislations are now contained in Part V of the
Analyse two Lucozade Advertisements, showing how the company's marketing strategies have changed.
Analyse two Lucozade Advertisements, showing how the company's marketing strategies have changed. Lucozade was first launched in 1927 by Smith-Kline Beecham. When it was first launched, it was for the sick to help them with their recovery. From the 1980's it has changed to an energy drink for the healthy. In this essay, I will explain how this image changed and why. The First advert had a typical 1950-1960's family with the wife talking care of the family and the husband working. The advert starts with a sick boy in bed with a home made get-well. He is the typical boyish figure of untidy hair and still jumping around even when ill. You then see his sister on the side of bed, who is also the typical girl with the pigtails in her hair and dimples in her cheeks and the frilly dress. You see the boy fall out of his bed and stand up straight away and get his drum and start banging it. The advert then cuts to the mother looking happy and pouring him a glass of Lucozade and going up stairs to give it to him. After he has finished the glass he gets the drumsticks for his drum and taps the bottle of Lucozade. The Lucozade bottle is right in the middle of the screen and up close to the lens so most of the screen is taken up by the bottle. At the end, in the top right corner of the screen the slogan 'Lucozade aids recovery' comes up just after he has banged the bottle. In the
Piercing the Corporate Veil. The concept of the separate legal personality, which regards a company as a separate person from its members, sometimes may act as a vehicle to defraud others, and it is to guarantee the interest of justice (Bisacre, 2002, p.5
Introduction The concept of the separate legal personality, which regards a company as a separate person from its members, sometimes may act as a vehicle to defraud others, and it is to guarantee the interest of justice (Bisacre, 2002, p.59), that the veil must be lifted so that reality behind the corporate personality can be taken into account in certain circumstances. The concept of the separate legal personality In the case of Salomon v Salomon & Co Ltd [1897] A.C. 22, Lord Macnaghton define a company as law a different person from the subscribers to the memorandum, that is, a company has been given property ownership, contractual capacity, borrowing power, and even has some human right1. Furthermore, the perpetual succession of a company guarantees that the legal personality of a company stays unaffected, regardless of its members' leaving or joining. As a result, despite a company differentiates form human being in many ways, it is sometimes counted as a person by law. Once a company has been registered and receives its trade certificate, it will have its separate legal personality, which usually works to its directors' and members' advantage by limiting their liability. However, this concept was re-enforced to work as a double-edged sword, that is, the legal personality of company can act to their disadvantage too. In the case of Macaura v Northern Assurance
Entity Selection Exercise: GXB Printing
Entity Selection Exercise: GXB Printing Gary Bauldin LAW 529: Legal Environment of Business Barry Preston August 3, 2004 GXB Printing is a business that presently has thirty employees in 5 different locations in the state of Alabama. GXB Printing is a walk-in printing business that caters to those who need documents, photos, business cards, etc... It also services commercial printing for businesses involved with advertising, producing flyers, office stationary, and signage. Presently, GXB Printing has over $750,000 invested in equipment for each location, and prides itself on offering the latest technology for its clients. GXB Printing also plans on utilizing the Internet for online orders and requests. GXB Printing is looking to expand in the market to different locations, and also implement a delivery service for its customers at an additional charge. The owners of GXB Printing have developed a great idea to set themselves apart from other printers in their region. This would be the proposed delivery service, and the decision to stay ahead with updated technology. This will allow a low turn around time on jobs for their customers. With the idea of expansion the owners have a few legal matters to consider; first they must be aware of the zoning restrictions in their desired locations. The owners should make sure the area is properly zoned for their business.
Three former employees of ChipeX, Inc. have developed a prototype for a new microchip to power the next generation of personal computers. There are four basic elements that need to be addressed to start a business formation.
Running Header: Entity Selection Entity Selection Angela Calabaza Alex Liu Leo Martinez Steve Riedl University of Phoenix Online LEGAL ENVIRONMENT OF BUSINESS LAW/529 Gale Francis, Esq. August 21, 2005 Introduction Three former employees of ChipeX, Inc. have developed a prototype for a new microchip to power the next generation of personal computers. There are four basic elements that need to be addressed to start a business formation. There needs to be an idea/vision for the business, identify legal regulatory issues in creating a business, select professionals for business advice, and the legal entity choice that would be made for the business. Legal Entity Choice The idea of the organization is to develop manufacture and market the microchip that will power the next generation of personal computers. The new microchip is designed to perform better than the ones that already exist. A new corporation has to be formed. The main investment will come from venture capitalists provided they will take 51% of the ownership interest. All business operations will be controlled by the developers of the product. The manufacturing is expected within two years and the company should go public, or sell to investors within five years. Being the new idea, new product and new organization, the corporation has a competitive advantage over others (Course Syllabus). There
Corporation Law - Case Study Stately Funeral Homes Ltd
Corporations Law Case Study Stately Funeral Homes Ltd is an unlisted public company that offers luxurious funeral services for the high-end market in the family's "Manor". The executive directors are Morticia (she is also CEO) and Gomez Addams, and Thing T. Thing. Each holds 20 shares. Fred and Lillian Munster, and Wednesday and Pugsley Addams, all hold 10 shares each. Both the Board and shareholders recognise Morticia's "excellent and most successful management." However, another lavish funeral home, Hampshire Haven, opens in the neighbourhood and competition becomes fierce. Stately decides it needs to expand its operations to get some competitive advantages. At the next Board meeting, Morticia makes a convincing business case for Stately to incorporate a subsidiary to buy Highway to Paradise Pty Ltd ("H2P"), a business that runs 3 hearses in the local area. With H2P, and some modifications to the family Manor, Morticia tells the Board that Stately could "process" triple the number of "clients" per day. Morticia assumes everyone knows that, through one of her companies, Morticia owns a 5% stake in H2P. So she simply says "if we go ahead with this, remember I'm interested." Stately incorporates a subsidiary, Freeway to Paradise Pty Ltd (F2P) to acquire H2P. However, F2P needs another $90,000 to complete the purchase. Gomez and Thing each purchase 45,000 $1 shares
Business Law.
Business Law To: William Capstick From: Svetlana Zmitrovich Agency "Agency is the relationship between two legal persons, natural or artificial, whereby one person (the principal) appoints another (the agent) to act on his behalf in affecting a transaction." (Richard Card, Jennifer James; Law for Accountancy Students; 6th edition; 1997, p477) a)i) The agency may arise in one of the following ways: By agreement It is possible for the agency to arise by two ways of agreement, express or implied. There very often will be a contract but it is not necessary in order for the agency to arise. (Chaudhry v Prabhakar (1988) 3 All ER 718, (1989) 1 WLR 29, CA) All that is necessary is a desire to appoint A as agent and A's consent to act as such. "If the parties have not expressly agreed to become principal and agent, it may be possible to find an implied agreement based on their conduct or relationship. If the parties have so conducted themselves towards one another that it would be reasonable for them to assume that they have consented to act as principal and agent, they are deemed to be principal and agent. (Ashford Shire Council v Dependable Motors Pty Ltd (1961) AC 336, (1961) 1 All ER 96, PC)" (Richard Card, Jennifer James; Law for Accountancy Students; 6th edition; 1997, p479) By estoppel "The agency can
company law
Company Law - 3LAW0086 Coursework Question "The law on directors' duties has been transformed by the Companies Act 2006, which has put the whole subject on a statutory basis for the first time. The new general duties stated in ss171 to 177 are based on the equitable principles relating to fiduciary duties and the common law of negligence..." Mayson, French and Ryan Company Law 24th Edition 2007. "Following the company law debate, in order to ensure that the duties become clearer, and to encourage companies to behave in a more socially responsible way, the legislature in the Companies [Act] 2006 has provided a new statutory formulation to underscore the broader aims that directors should promote." Arsalidou, D Shareholder primacy in Cl. 173 of the Company Law Bill 2006 Company Lawyer (2007) Undertake a critical evaluation on whether the new statutory form of directors' duties does make the duties a director owes clearer and offer opinion on how radical you consider the changes in directors' duties to be? Your answer must refer to relevant case law and academic
The key to section 13 of the Sale of Goods Act 1979 is interpretation.
‘The key to section 13 of the Sale of Goods Act 1979 is interpretation. Nonetheless, even descriptive words that at common law would be regarded as mere representation may fall within the description of the goods within section 13.’ This question requires the consideration of the rules relating to the sale of goods by description in section 13 of the Sale of Goods Act 1979. Under section 61[1] goods are defined as all personal chattels other things in action and money, and all moveable goods. The Sale of Goods Act 1979 is a key in Consumer law in the UK, which sets out the rules that the sellers must satisfy when selling products. The Act implies terms into the contract and protects the buyer regarding to the goods supplied. Under section 13(1)[2] an implied term states that the goods will correspondent with the description. The significance of the section 13[3] is that such a term implied is merely a condition under section 13(1A)[4]. This condition is implied only where there is a sale by description. Clearly, section 13[5] applies where the buyer had relied on the description of the goods. The Latin phrase de minimis lex non curat describes the general rule of the common law, which states that the law is not concerned with the trivial.[6] Section 13 of the Sale of Goods Act 1979 applies to contracts for the sale of goods of all kind and binds private and
money laundering
It is nearly 3 years to the day since the U.K anti-money laundering legislation was significantly amended and consolidated with the implementation of the Proceeds of Crimes Act 2002(POCA).It is only a matter of days before the 2nd European Directive, the so called EUgatekeepers initiative, will be implemented in the United Kingdom by the much Money Laundering Regulations 2003.The few years consultation and implementation period ends on the 1st March. There is little doubt that the impetus behind the drive of governments worldwide to implement legislation to combat money laundering was given extra force by the events of September 11 2001.To this end attention has increasingly focused non gatekeepers the professionals such as lawyers, tax advisers and accountants who have become as essential resource to the criminals who nee to clean huge sums of money made from the proceeds of crime. All EU members will have to implement the directive, including the new members joining the Union last year. At the time of writing, the following countries have fully implemented the second directive; Austria, Belgium, Finland, Germany, Ireland, Spain, the Netherlands and the U.K.Member states have a level of discretion in implementing the directive. It is important, therefore, that regulated UK professionals and business ensure that their own procedures are independently compliant with the 2003