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Role of Government in Making Law

University: UK College of Business and Computing

  • Unit No: 8
  • Level: Undergraduate/College
  • Pages: 7 / Words 1687
  • Paper Type: Assignment
  • Course Code: R/508/3737
  • Downloads: 680
Question :

Business Futures Ltd got a project from Country Pine where prior one will make business plan for explanation of Country Pine.

  • Describe the nature of English legal system by considering sources of law and the role of government in making law.
  • Explain influence of legal obligations on Country Pine.
  • Recommend most relevant legal solutions of the problems faced by Country Pine.
  • Propose legal solutions by considering alternative options.
Answer :


Law can be determined as a structure that is fixed so that people can be protected from any type of discrimination. Further, it is recognized as mercantile legislation that can either be designed by government or parliament in a country (Mann and Roberts, 2011). There are different type of issues of problems faced and all these can be solved when appropriate policies or laws are developed. The type of laws that are followed at other countries differs and these are created so that all the situation because of which individuals face problems can be solved. This report covers sources of law and nature of English legal system. Further, it covers identification for the role of government in law making. Lastly, it also includes justification in context with proposed legal solution. 

TASK 1 P 1 Explanation of sources of law and nature of English legal system

In accordance with the general concept of legislation, main reason due to which norms are designed so that basic structure of society can be maintained. This way, solution is provided to the problem faced by business entrepreneur who run the business in effective manner. In situations when any of the firm fails to comply with norms or law, then they can face legal obligations like paying penalties, etc. 

People who had legal authorities in British legal system were the one who formed English law. Further, the legislations in in English legislative system is developed by the people from government in Union nation that enables to govern and regulates various tasks of organizations that operate in England and Wales (Kubasek, Browne and Barkacs, 2015). Violations for the legal rules in English legal system is identified and considered by court or justice and law. There are three major types in which the English law system deals and they are as follows:

Common law

These types are norms are formed by judge on the basis of decision taken by magistrate in existing law suits.

Secondary legislation

These kind of norms are designed by representative of primary legislation authority. Some examples of secondary legislation are national assembly of Wales act, Ireland Act etc.

EU law

Convention of human right this is the act in English legislative system which is influenced by the laws in European union. It is considered to be an important norm which is required to be followed by all companies operating business in England and Wales (Melvin and Katz, 2011).

Primary law

These form of delegated law are designed by the deliberate assembly of the country. Such types of norms are influenced by the several laws formed by government in Scotland. Legal authority in Parliament has authority to issue secondary norms. Public Act, privy council are some primary; laws in legislative system of England.


These are the norms which are automatically originated by act of parliament.

Apart from this, there are two other laws that business require to consider at the time of naming, establishing and at the time when business operations are carried out. These are corporate law and company act. 

P2 Identifying the role of government in law making

In order to develop a law, there are many steps and procedure that are needed to be considered by government at each phase. In this context, below given are the stages that are involved in development of law:

Information regarding government agenda: This is a type of phase in which from nation all the legal authority conducts survey and collects details regarding the problems that are faced by the companies or individuals of the society (Bagley, 2010). When problem is identified, then appropriate steps are taken so as to overcome them. 

Preparation of proposal: When first phase is completed, then government proposal is prepared that consists of the details regarding the issue and solution that can be implemented.

Proposal to bill transformation via parliamentary counsel: When proposal is developed, then it is presented by functions of legal authority in front of small councils. 

Introducing bill in parliament session: When the proposal or bill is approved by legal authorities for the working of small level, then it is sent for further processing and then it is converted into a bill. Further, it should also be forwarded to members in parliament. 

First, second and third reading: As per this phase, this is the responsibility of legal authority to make sure that bill is presented for first reading in the House of Lords (Folsom, Gordon and Van Alstine, 2013). When first reading is done, then as per the function of government is to make necessary changes are made. These changes are done as per suggestion or advice that are given by the members in parliament. When these process is done and amendment is passed, then bill is presented in second reading. In the process of second reading short debate taken place in order to make the bill implement. Then the legal authority will send the bill for inspection in which effectiveness is measured. 

Approval of bill:

When inspection is done and result is declared, then bill is presented for third reading. This phase, decision regarding enforcement and voting also taken place. In situation when it is not approved by parliament, then they take up solution to solve them. 

P3 Analyzing the way employment and contract law have effect on business

With the help of contract law, it governs relationship between parties. In accordance with the norms, it is important for the parties to enter into a legal binding contract. All the parties involved to comply with all the terms and conditions that are included. In situations when any of the parties fails to meet the terms, then these are type of condition in which the contract gets void (Manafy and Gautschi, 2011). With respect to employment contract act, it is required that employee and employers need to perform their set of roles and responsibilities in appropriate manner in accordance with the agreement signed. Further, it can also be stated that employment contract has significant influence on relationship. Among company and its stakeholders. Apart from this, employment legislation has high impact on practices of human resource practices. All the laws that are being provided by the firm should be followed and these are develop maintaining the interest of workers and business

P4 Suggesting the legal solution for resolving the business problems

In accordance with the nature that private company holds, it is limited to equity and shares that is facilitated among the society. In this context, it has appropriate gains and it also enables to firm to attain their set of goals and objectives. With this respect, there are different type of laws like Insolvency Act 1986, Companies Act 2006, etc. that are governed by English legal authorities (Vagts, Koh and Buxbaum, 2015). This way, the main focus or motive of government is to develop trade practice and legal environment. In accordance with the case, CP is focusing on to operate sole trade in the market. In spite the firm is small, it is growing tremendously. Thus, it increases the capital of the organization and will also get suitable economic structure as their level of funding can be generated with the help of equity investment that provokes better funding operations. Further, it is also important for the organization to plan for dividend policies that are helpful enough to satisfy investors as it they have legal solutions. 

Within the business, financial and operational governance for the business is required to determine proper understanding for director’s duties. It is the responsibility of directors to make payment to stakeholders before payments are made through turnover that are obtained in due time (Cheeseman, 2014). This falls under Company Act 2006 section 171 to 177. In situation when equity holders are not conveyed regarding the financial data and dividend payments, then it can be considered as breach of duties of directors. Both CP and BF should present details regarding financial performance to their shareholder so that smooth running of business is possible. This will be helpful for new and existing equity holders. In situation, when firm becomes insolvent, then it is the responsibility of directors to make first payment to their shareholders.  

P5 justification in context with proposed legal solution

In accordance with the case given and for the issue that are faced, cited firm should make changes in relation with the changes into operations so that effective working environment can be developed (Mann and Roberts, 2011). As per Companies Act 2006 under section 171 to 177, in situations when equity holders do not have disclosure of financial aspects and dividends paid, then it becomes breach of duties from the side of directors. This way, stakeholders can claim for the same from directors. Further, it is suggested to both CP and BF that they should provide appropriate financial information to their stakeholders on periodic basis. As a result, it will be build up satisfactory trust among individuals involved with the firm. Apart from this, appropriate steps are taken in which firm is required to make registration under Companies Act 2006. This way, it enables to provide and support the business to get most satisfactory legal solution for the problem that are faced by the business. Trust is developed only when all the people who are considered to be the stakeholders should be proper understanding about the financial performance that are made by the firm (Kubasek, Browne and Barkacs, 2015). When all the information are conveyed to stakeholders, then it becomes helpful to develop trust and confidence. In situations when there are organization becomes insolvent, then all the debt that are focused should be paid first to stakeholders. This way, it issues that are faced can be solved in appropriate manner and the terms are maintained.

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