Reference no: EM132162213

Unit Learning Outcomes:

LO1 Explain the nature of the legal system

LO2 Illustrate the potential impact of the law on a business

LO3 Examine the formation of different types of business organisations

LO4 Recommend appropriate legal solutions to resolve areas of dispute

Assignment Brief:

Task 1:

You are working in a law firm advising new start-up companies on the legal system and key legislation that they are required to know and apply. You have been asked to produce a handbook for new companies in order to support your business advice and guidance.

The handbook must include the following sections:

1. An explanation of the legal system in the Hong Kong Special Administrative Region (HKSAR).

2. An overview of the sources of law in the HKSAR.

3. An explanation on the role of government in law-making.

4. An explanation of how statutory and common law is applied in the justice courts in the HKSAR.

5. Using specific examples illustrate how company, employment and contract law has a potential impact upon business in the HKSAR.

Task 2:

Youare an IT expert and want to set up a new business with your friends David (an accountant) and Evia (a marketing specialist) to provide IT solutions to business firms.

You are faced with some business problems below. For each problem case presented, you must apply the law and justify a legal solution to the problem. You may assume and add some new facts in answering the questions, such as the name of the new company, its address and whether or not David has a residential house worth $ 10 million.

Problem A

You are now considering whether to form a partnership or a registered company.Explore how a partnership is legally formed in the HKSAR.

David suggests to form a registered company as there are a number of advantages of registered companies over partnership. Identify those advantages and describe the procedures in forming a company under the Companies Ordinance. Please complete the standard form required by the Companies Registry and attach it in the Appendix. And also discuss whatother documents you need to submit. What type of registered company would the new company be? Explain.

Problem B

Discuss how you would arrange the management structure of your company and in particular, including a discussion of the appointment of directors, company secretary and auditors.

As Evia has a full time job in a marketing firm, she only agrees to work part-time for your new company. She is deciding whether to be a director of the new company or just register as a shareholder. Explain to Evia the different roles of director and shareholders in a company.

Problem C

Your registered company requires an initial capital of HKD 3 million for starting up the business. Discusshow your company isgoing to be funded and the problems it will face in raising capitals.

Problem D

Fanny has been employed by David as a personal secretary for two years. One morning, Fanny forgot to bring her wallet to office and she had no cash with her. She knew that David had some cash inside a box in the drawer. Before David came back, Fanny took $200 from the box leaving a note saying that she has taken $200 and will return the next day.

When Davidreturned office and saw the note, David was furious and dismissed Fanny immediately. Fanny thought she would be entitled to have one month's notice on termination as well as the long service payment.

Advise Fanny of her rights as an employee.

Problem E

Johnson Ltd had a contract with your company under which your company agreed to write a software business programme for them on or before a Completion Date. However, there was a delay in submitting the software programme to Johnson Ltd.

Under the contract, your company had to pay Johnson Ltd a fixed sum of $1,000 per day each day after the Completion Date until the programme is submitted. There was also an arbitration clause in the contract.

Your company argued that and they should not pay the fixed sum which was a penalty and in any event, the delay was not due to their fault, but due to delay in providing instructions by Johnson Ltd.

Assess the different legal solutions to the problem including alternative dispute resolution.

Attachment:- Assign Brief.rar