736-Assignment-2 - Group2 2
736-Assignment-2 - Group2 2
736-Assignment-2 - Group2 2
6. Ho Thi Vi - GBH211334 Vi
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is a form of
malpractice.
P3 P4 P5 P6 M2 M3 M4 D1 D2 D3
OBSERVATION RECORD
Student 1
Student
Date:
signature:
Assessor
Date:
signature:
Assessor name:
Student 2
Student
Date:
signature:
Assessor
Date:
signature:
Assessor name:
Student 3
Student
Date:
signature:
Assessor
Date:
signature:
Assessor name:
Student 4
Student
Date:
signature:
Assessor
Date:
signature:
Assessor name:
OBSERVATION RECORD
Student 5
Student
Date:
signature:
Assessor
Date:
signature:
Assessor name:
Student 6
Student
Date:
signature:
Assessor
Date:
signature:
Assessor name:
Summative Feedback: Resubmission Feedback:
Below are the consequences that Party A (the breaching party) must bear:
Reputation: When a company abruptly raises the price of semi-finished goods without alerting the
partner, this makes the partner question the reputation of the company and can result in the loss of a
potential and long-term business partner. Businesses that are collaborating with Party A will have a
diminished reputation as a result, and some may even decide not to renew the contract out of concern
for the potential negative effects of a poor reputation.
For customer: a company's reputation and level of consumer trust are key factors in its ability to attract
clients, partners, and investors. When a need arises, customers will identify and quickly think of the
company's products and services if it has a reputation for reliability and excellence. But if a company's
reputation is badly viewed, people won't patronize it and they'll often change their minds about making
a purchase after hearing bad press or reading bad reviews. Once a company has a terrible reputation,
they will lose a lot of potential clients, even devoted ones.
Domino effect and Stock price, upcoming projects, debt: According to the recorded contract, Party B
has the right to bring legal action against Party A, which could have an impact on other firms when
dealing with incidents like these. Reputational damage can result in businesses losing customers,
partners, employees, and the board of directors and other associated parties in charge of party A's
corporate governance. Additionally, by taking this step, the business may be open to legal action or
compensation for people harmed. Shareholders may simultaneously sell off their shares as the
company's share price can be sharply dropped, decreasing revenue. As a result, the company's financial
reserves are diminished to a point where they are only sufficient to maintain operations but not
sufficient to fund new endeavors. Profits are not high and there is no ability to pay debts to the bank. If
the business accepts the risk of continuing to borrow to invest, it can lead to debt accumulation and
bankruptcy.
Workers: Employees frequently don't want to work for a company whose reputation is at stake. It is
challenging to retain staff in the era of gen Z workers since they are independent contractors, but it is
even harder for enterprises with a poor reputation to do so. Additionally, hiring new personnel will be
challenging for organizations, driving up hiring costs.
Types of ADR
SLIDE 10_ LECTURE 4.5_ ALTERNATIVE DISPUTE RESOLUTIONS (ADR)
Conciliation is an effective ADR strategy for settling business disputes, as it is an optional form that allows
conflicting parties to choose their preferred method. The mediator's responsibilities include assisting in
resolving the dispute, ensuring satisfaction, and protecting the interests of all parties. Conciliation is flexible,
allowing parties to voice opinions on the best procedure and avoiding complex technical requirements. It
fosters direct engagement between disputing parties, allowing for communication, exchange of ideas,
negotiation, and potential solutions. This approach prioritizes relationship preservation and individual
involvement, emphasizing the humanistic meaning of conflict resolution. Conciliation adopts a participatory
approach, model negotiation, and constructive problem-solving techniques, making it a flexible alternative
to court proceedings. It allows parties to apply binding rules, principles, and policies, allowing for agreements
based on mutual interests. Confidentiality and privacy are ensured by holding meetings in private, requiring
consent from third parties, not making information public, and agreeing on settlement terms. In particular,
when a breach happens, party A might ask a conciliator—a specialist in negotiation—to take into account a
reconciliation plan with party B. With the use of this technique, agreements or acceptable solutions to reduce
tensions and restore the cooperative relationship between the two parties to normal will be developed by
taking into account and evaluating the amount of violation of Party A (the violating party) and Party B (the
injured party). The conciliator will consider both parties' interests to assist in reaching a compromise, and
examine, and assess the agreement, which will be advantageous to both parties and prevent the negative
effects of going to court.
The two parties may file lawsuits against one another in court if the breach caused irreconcilable tensions.
This is a legitimate approach to dealing with stress, but it is quite costly and takes a very long time to address.
To file a lawsuit, a plaintiff must first meet all legal requirements. Then, the petitioner must send a lawsuit
petition to an appropriate court, along with all relevant documents and evidence. The court will then decide
the case using one of the following procedures: directly submitted to the court; Send correspondence to the
Court by mail; or electronically via the Court's Portal. If the judge determines that the matter fits under the
court's jurisdiction after receiving the lawsuit petition and all supporting papers and proof, they must notify
the petitioner right away so that they may appear in court to complete the necessary payment formalities.
The plaintiff must pay the court cost advance fees and submit to the Court a receipt for the collection of the
court fee advance within seven days of the day they receive the Court's notice of payment of the court cost
advance. Only until the petitioner provides the court with a receipt attesting to the payment of the court fee
advance can the judge or court accept the case. Both parties must spend money on legal representation
during the processing period. However, once the court has made its final judgment, it will be required and
must be carried out in accordance with the law. Although it takes a lot of time and money, litigation will
ultimately result in a fair and accurate conclusion, and it will also result in laws that guarantee the execution
of court orders.
Additionally, in accordance with Article 7 of the contract, if negotiation or conciliation fail to settle the
conflict. Any party may request arbitration within 30 days of the day a dispute first arose. According to the
terms of the law and the court's decision, the court has the authority to decide acceptable to all parties. The
losing party is obligated to cover the victorious side's attorney expenses as well as any additional court costs.
5. The scandal regarding the violation of company law regarding the violation of the Duties
of the Director
5.1. Describe the scandal
Fact summary:
The High People's Court in Hanoi opened a public court hearing on August 13, 2018, at the headquarters
of the People's Court of Cao Bang province, for the appellate trial of the criminal case handled No.
192/2018/TLPT-HS on March 9, 2018, for defendant Hoang Thi L, who was tried at first instance for
embezzlement of property; forging seals and documents of agencies and organizations; defendants
Nguyen Huu T and To Thi A were tried for the crime of intentionally violating.
Problem:
Hoang Thi L committed fraud while serving as Acting Head of Agribank.BL's Accounting and Treasury
Department, generating phony paperwork, seals, and vouchers, opening bogus accounts, and filing false
reports. the truth, creating an account in your and others' names to usurp 3,470,000,000 VND from
Agribank.BL. Defendant Hoang Thi L committed the offenses of embezzlement under Point a, Clause 4,
Article 278 and forging seals and papers of agencies and organizations under Clause 1, Article 267, much
as the first-instance court. imputed to be the right person, the correct crime, not the wrong one.
Defendant Nong Thi N, as Director of Agribank.BL, approved 04 entries on the IPCAS system with a total
value of VND 1,900,000,000 while having no original documents, in violation of Decision No. 1000/QD-
BOD- On July 5, 2011, Agribank's Financial Accounting Committee issued the Accounting vouchers regime
applied on the Agribank system; Decision No. 311/QD-NHNo-TCKT dated March 27, 2014, of Agribank
promulgating Regulations on As a result, the appellate trial panel determined that defendant Nong Thi
N's above behavior was guilty of intentionally violating the State's economic management regulations,
resulting in serious consequences under Clause 3, Article 165 of the Code 1999, as the prosecution and
protest point of view is acceptable.
Decision:
Pursuant to Point b, Clause 1, Article 355; Article 357 Criminal Procedure Code: Acceptance of Appeal No.
01/QD-VKSCB-P2 dated February 5, 2018, of the Procurator General of the People's Procuracy of Cao
Bang Province; not accept the appeal of defendant Hoang Thi L; amending the first-instance criminal
judgment No. 04/2016/HSST dated January 25, 2018, of the People's Court of Cao Bang province.
1. Point a, Clause 4, Article 278 shall be applied; Clause 1, Article 267; point b (for the crime of
embezzlement of property), p Clause 1, Clause 2 Article 46; Article 47 (for the crime of embezzlement of
property); Article 50 of the 1999 Penal Code, sanctioning defendant Hoang Thi L 15 (Fifteen) years in
prison for embezzlement of property; 06 (Six) months in prison for forging seals and documents of
agencies or organizations. Summarizing the penalty, forcing the defendant to serve both crimes is 15
(Fifteen) years and 06 (Six) months of imprisonment, the prison term is counted from the date the
defendant serves the sentence.
2. Clause 3 of Article 165 shall be applied; Point p, q, Clause 1, Clause 2, Article 46 of the 1999 Penal Code,
sanctioning defendant Nong Thi N 04 (Four) years in prison for the crime of intentionally violating the
State's regulations on economic management, causing consequences serious, the prison term is from
January 15, 2018.
Defendant Hoang Thi L had to pay 200,000 VND for appellate criminal court fees. Defendant Nong Thi N
is not subject to appellate criminal court costs.
5.2. Obligations under UK law were breached in this scandal
The obligations of a Director are presented in a logical manner throughout eight obligations under the UK
Companies Act 2006 (The National Archives, 2023). The aforementioned incident breached two articles of
the law, namely the Duty to act within the authority and the Declare an interest in an existing transaction or
arrangement; this has had a significant impact on the organization.
According to article 171 of the 2006 Company Law, Ms. Hoang Thi L and Ms. Nong Thi N both breached the
law by failing to act within their powers. Ms. Hoang Thi L falsified agency and organization seals and papers,
as well as embezzled corporate assets, severely hurting the organization. Ms. Nong Thi N also knowingly
disregarded the State's economic management standards, resulting in significant repercussions, and so
violated the Company Law 2006. Furthermore, according to article 177 of the 2006 company legislation, it is
stated "Declare an interest in an existing transaction or arrangement," which Ms. Hoang Thi L breached when
she embezzled the business's assets worth up to 10 billion VND, having a negative impact on the firm.
5.3. The impact of the scandal on the company's business
Each corporation must bear some consequences following a scandal. Five specific aspects were considered:
reputation, domino effect on other organizations, capital expenditures, employees, stock price, forthcoming
initiatives, and debt. The consequences incurred by the corporation will be examined further below.
• Reputation: Company reputation suffers when a judgment is served. The company's reputation
among employees as well as customers and suppliers for upcoming projects has also been affected
somewhat.
• Domino effect on other businesses: This incident compels directors with embezzlement intentions
to limit their behavior, and corporations to pay greater attention, limiting the appearance of
embezzlement and counterfeiting.
• Capital expenditures: The loss and appropriation of more than 10 billion VND caused serious damage
to the bank's capital costs.
• Employees: The first affected people, in this case, our employees. When the Company loses 10 billion
VND, it will directly affect the salary and bonus and the activities taking place in the company, so the
employees are the most affected. Besides, employee morale is affected significantly.
• Price of stocks, upcoming projects, and debt: The stock price dropped significantly after the scandal
happened, and the upcoming project may have to be delayed because of the large loss.
7. Find out 1 REAL scandal in the UK relating to the violation of the Duties of Employers in
a REAL company. And explain as follows:
7.1. Describe the scandal.
The "BHS (British Home Stores)" collapse in 2016 was one noteworthy controversy involving a firm and its
employees in the UK. BHS, a well-known department store business, endured a succession of issues and
financial troubles, eventually leading to its demise and the loss of thousands of employees. The issue
centered on the former owner of the corporation, Sir Philip Green, and the following ramifications. Sir Philip
Green, a well-known businessman and millionaire, bought BHS in 2000 and ran it until 2015, when he sold it
for £1 to a partnership named Retail Acquisitions Ltd. Following the sale, BHS suffered financially, amassing
huge debts and shortfalls in its pension fund. The firm went into administration in April 2016, and all BHS
stores were liquidated soon after, resulting in the loss of about 11,000 employees. The BHS incident drew
widespread attention owing to a number of issues. First, it was disclosed that considerable profits were paid
to the company's parent business and his family under Sir Philip Green's ownership, while the pension fund
deficit mounted. This sparked concerns about the company's financial management and the impact on the
pension plans of thousands of BHS employees. Concerns were also raised concerning Sir Philip Green and the
consortium's due diligence before selling BHS to Retail Acquisitions Ltd. The new owners were accused of
lacking the requisite skills and resources to bring the firm back, compounding its financial slide. The incident
prompted regulatory organizations, legislative committees, and the Pension Regulator to conduct
investigations. Sir Philip Green came under fire and was brought before parliamentary committees. Sir Philip
Green eventually agreed to pay £363 million into the BHS pension scheme to alleviate the pension fund
deficit. The BHS affair brought to light concerns of corporate governance, the obligations of firm owners, and
pension security for employees. As a result, conversations regarding the need for more laws and measures
to protect employees from similar scenarios in the future erupted (BBC, 2017). 7.2. Explain the impacts of
the scandal to the business of the company.
7.2. Explain the impacts of the scandal to the business of the company.
Business Operations: The scandal severely impacted BHS's business operations. The company faced
financial difficulties, mounting debts, and an unsustainable business model. This led to a loss of investor
confidence and strained relationships with suppliers and creditors. Ultimately, BHS went into
administration and ceased operations, resulting in the closure of all its stores.
Customers: The scandal had implications for BHS customers. The uncertainty surrounding the company's
future and eventual collapse affected consumer trust and loyalty. Customers became hesitant to make
purchases or engage with the brand, leading to a decline in sales and footfall in BHS stores. The closure
of BHS stores also left customers without access to the products and services they had relied upon.
Employees: BHS employees were heavily impacted by the scandal. The collapse of the company resulted
in the loss of around 11,000 jobs. Employees faced immediate job insecurity, financial hardships, and
uncertainty about their future employment prospects. The situation not only affected their livelihoods
but also created emotional and psychological distress for those suddenly without work.
Domino Effect: The scandal had a domino effect, impacting suppliers, creditors, and other businesses
associated with BHS. Suppliers were left with unpaid invoices and financial losses due to the collapse of
BHS. The closure of BHS stores also affected the landlords who owned the premises and relied on rental
income. Additionally, the broader retail industry felt the ripple effects as consumer confidence waned,
impacting the sector.
10. Explain different types of companies according to Vietnamese Law (The Enterprise Law
2020) with references to:
10.1 Sole Trader/ Sole Proprietorship
Sole Proprietorship concept
Article 188 of the 2020 Enterprise Law stipulates the signs of private enterprise identification as follows:
Private enterprises are a type of enterprise (the concept of business and business prescribed in Clauses 7,
Clause 16, Article 4 of the Enterprise Law 2014: Enterprises are organizations with their own names, assets,
and abide. The transaction office is registered to establish in accordance with the law for business purposes.
Floor consumption or service providers in the market for profit. Other business enterprises and private
enterprises that are their own names are recognized by the State through the State's business registration
certificate; The purpose of private enterprises is to constantly carry out business activities to seek profits.
Characteristics of private enterprises
When establishing a private enterprise, investors must grasp the characteristics of this type of business to
make the right choice.
• Private enterprise is established and owned by an individual: Private enterprises do not appear the
same capital contribution as in many owners, the capital source of the enterprise also mainly comes
from the assets of a single individual.
• About capital ownership in the business: The initial source of private enterprises originated mainly
from the property of the business owner. In the course of operation, business owners have the right
to increase or decrease investment capital, only to declare to the business registration agency in case
of reducing capital to below the registered level. Therefore, there is no limit between the capital and
assets put into the business of the private enterprise and the rest is owned by the business owner.
That means it is impossible to separate the property of the owner of the private enterprise and the
property of that private enterprise.
• Ownership relationship decisions management relationship: Private enterprises have only one
investor, so individuals have the right to decide all issues related to the organization and operation
of private enterprises. The owner of a private enterprise is the legal representative of the private
enterprise.
• About profit distribution: The issue of profit division is not posed for private enterprises because the
private enterprise has only one owner and the entire profit gained from the business of the enterprise
will belong to the business owner alone. However, that also means that the only individual will be
obliged to take all risks in business.
• Private enterprises have no legal status: A legal entity must have its own property, that is, there must
be a separation between the assets of that legal entity and the creator of the legal entity. Private
enterprises do not have independence of assets because the property of private enterprises is not
independent in relation to the property of the private enterprise owner.
• The owner of the private enterprise is not responsible for all the debts arising during the operation
process: Due to the independence of property, the owner of a private business - a person who is
responsible for all risks of the business will be subject to infinite liability. The owner of a private
enterprise is not only responsible for the business operations of the enterprise within the registered
investment capital but also responsible for all assets in case the registered investment capital is not
enough.
11.2. Compare and contrast of various ways/ methods to obtain these legal solutions (ways to resolve the
dispute): Alternative Dispute Resolution (ADR) and civil litigation procedures (court). Advantages and
disadvantages with respect to: time saving; procedure; economic aspect; confidentiality; remaining
relationship; should be taken to assess the effectiveness.
Time-Saving:
ADR: ADR can be a less expensive and time-consuming alternative to going to court. By avoiding protracted
court processes, parties can save money on legal bills and shorten the time it takes to obtain a decision
(legalthomsonreuters, 2022).
Court: Due to the organized legal procedures involved, the court can be time-consuming. Depending on
the intricacy of the case and the availability of the court, each of these processes might take weeks or
months to complete. As a result, civil litigation may be a time-consuming and costly procedure for the
parties involved (Burke, 2017)
Procedure:
ADR: ADR methods tend to be more cost-effective than civil litigation. ADR avoids many of the costs
associated with court proceedings, such as court fees, attorneys' fees to prepare for extensive litigation,
and costs associated with extensive discovery. ADRs can save parties significant financial resources
(thomsonreuters, 2022).
Court: Court may be an incredibly costly endeavor. While it is true that the victorious party can collect the
opposing party's legal fees in most circumstances, it is doubtful that one side will be able to recover all of
its legal fees. Finding an attorney and then dealing with the charges of attorneys' fees and court fees may
be time-consuming and expensive (Jarvis, 2020).
Economic Aspect:
ADR: ADR methods generally tend to be more cost-effective compared to civil litigation. ADR avoids many
of the expenses associated with court proceedings, such as court fees, attorney fees for extensive litigation
preparation, and costs related to extensive discovery. ADR can save parties significant financial resources
(ThomsonReuters, 2022).
Court: Courts can be an extremely expensive undertaking. While it is true that in most cases the prevailing
party can claim the other party's legal costs, it is unlikely that one party will be able to recover all of its
legal costs. The court is sometimes an expensive procedure, due to the fact that the litigation process can
be very unpredictable, even for experienced attorneys (Ahluwalia, 2021)
Confidentiality:
ADR: Alternative processes are typically confidential, meaning the fight is out of the public eye and —
more importantly — sensitive documents, trade secrets, etc. are protected from disclosure
(ThomsonReuters, 2022).
Civil Litigation: Court proceedings are usually accessible to the public, which means that the details of the
case become public record. The evidence, arguments, and documents presented in court may be made
available to the public, including the media and other interested parties. (AddleshawGoddard, 2021).
Remaining Relationship:
This element is heavily influenced by the antagonism of the two conflicting parties. When the two parties
decide to go to court to settle their issue, it is safe to assume that they are antagonistic to one another.
As a result, determining the plaintiff and defendant's future connection is extremely difficult. ADR, on the
other hand, can be a less confrontational and unfriendly method of settling disagreements. An skilled
mediator, for example, can assist the parties in successfully communicating their demands and points of
view to the opposing side. This can be a significant benefit when the parties' connection must be preserved
(Ca.gov, 2023).
Effectiveness Assessment:
ADR: Allowing partners greater control and input over the process and outcome may boost satisfaction.
Fostering voluntary and mutually agreeable agreements may increase compliance. May boost durability
by addressing the parties' underlying interests and wants. - May help to maintain or develop relationships
by encouraging cooperation, communication, and mutual understanding. Access may be improved by
lowering prices, delays, and formalities (Civil Justice Council,2021).
Court: imposing legally binding and enforceable judgments may help to increase compliance. Increase
long-term viability by creating legal precedents that may be used to guide future cases or discourage
similar battles. Allowing parties to delegate responsibility to attorneys and judges may help to preserve
relationships. Access can be assured by providing a public and fair dispute resolution venue (britannica,
2023).
While ADR has numerous advantages, it does not eliminate the need for courts. Courts continue to have
benefits that ADR cannot provide. Court processes guarantee that conflicts are fairly settled. The decision
of the judge is irrelevant to the contesting parties. It will instead be based on the information and facts
acquired, as well as the testimony of witnesses. As a result, the judge's ruling is objective and based on
current evidence. Furthermore, the judge's ruling is permanent and binding on both the plaintiff and the
defendant (ADCOLaw, 2021).
12. To further enhance your illustration, you may have in depth analysis of how other
broader legislations/ regulations or standards make effects on business by:
One of Vietnam's biggest IT service providers, FPT focuses on offering technology-related goods and
services. FPT's management structure serves as a constant lesson for small and medium-sized businesses
in Vietnam because of its size and importance. On the website of the State Securities Commission of
Vietnam, FPT regularly advertises the "Statute of FPT Joint Stock Company" (FPT Securities, 2022). In
chapter 2 about shareholders and co-shareholders. Article 7 refers to Reports on Activities of the Board
of Directors at the Annual General Meeting of Shareholders Unless otherwise provided for by law or the
Charter, the report on activities of the Board of Directors shall be submitted to the Annual General Meeting
of Shareholders.
FPT always has a Board of Directors and a Supervisory Board. These two groups of positions are required
to report together at each Annual General Meeting of Shareholders. This is contained in the items under
Article 139 of the General Meeting of Shareholders under Enterprise Law 2020. It is also contained in the
company's charter and internal procedures. FPT rules are rather strict. The legislation can and has been
more specific. The eight items listed above must be included in the Board of Directors' report on Board of
Directors' activity, according to FPT.
The laws that have adjusted FPT's internal regulations are clearly shown in the sections. FPT's charter and
internal regulations when published on the web portal of the State Securities Commission of Vietnam
should fully meet the requirements in Decision 515/QD-UBCK 2012 on handling and information disclosure.
At the same time, even in FPT's charter and internal regulations, the content is also indicated based on
Clause 3, Article 163 of the Enterprise Law 2020 and the Company's Charter. Therefore, the Law has been
the basis for FPT to develop its regulations. FPT needs to rely on available laws and decisions to comply
with and issue internal regulations. FPT's charter has similarities with Clause 3, Article 163 of the Enterprise
Law 2020. The remuneration of each member of the Board of Directors, the salary of the Director or
General Director and other managers shall be included in the business expenses of the company in
accordance with the law on corporate income tax. appear as a separate item in the company's annual
financial statements and must be reported to the General Meeting of Shareholders at the annual meeting.
FPT's charter and internal regulations on corporate governance are highly legal, because as analyzed above,
FPT's Charter has similarities with legal provisions. According to Thanh (2021), FPT was based on the legal
basis to build internal governance regulations on corporate governance. Specifically, they still develop
internal regulations that fully meet the legal basis: Enterprise Law 2020, Decree No. 71/2017/ND-CP dated
June 6, 2017 of the Government guiding on corporate governance. companies applicable to public
companies; Circular No. 95/2017/TT-BTC dated September 22, 2017 of the Ministry of Finance guiding a
number of articles of
Aside from the similarities, it is also important to note the clearly stated differences. Decree 71/2017/ND-
CP of June 6, 2017 guiding military rules applicable to public companies. In addition, with specific
regulations, FPT always clearly states the legal document it is based on. For example, with article 7 of FPT
above, they have specifically stated that the regulation is based on Clause 3, Article 163 of the Enterprise
Law. 2020 and the Company's Charter. The provisions of the law in general and the law on enterprises in
particular cannot be detailed and adjusted appropriately for the organisation and operation of all
companies, therefore the charter and internal regulations Each company's set is different.
The connection between internal regulations, standards of the association and the law is clearly shown in
legal documents. When developing and promulgating the Charter and internal regulations, companies
should note that the contents of the Charter and internal regulations must not contravene the provisions
of current laws.
Currently, the Enterprise Law 2014 has many laws that allow companies to make more decisions on their
own through the following provisions: "The company's charter does not provide otherwise" or "The
company's charter does not stipulate". This is also clearly reflected in FPT's documents, they always
emphasise that "Unless the law or the Charter provides otherwise, then..." It can be seen that the Law is
the basis for publicity. The Company promulgates the Charter and Internal Regulations. Comply with the
provisions of the law related to the organisation and operation of the Association. The company's charter
and the ministry's governance regulations are considered as the "law" of each enterprise, the foundation
for building and managing a solid, civilised and progressive team.
13. Figure out the advantages and disadvantages of a Sole Trader. Good examples or data
should be provided to support the analysis.
Advantage
The owner has full authority over all business activities in the organization. Because private companies only
have one investor, trading options is simple and quick. The Owner manages himself or hires a manager and
the Owner is the legal representative, according to Thuvienphapluat (2022). (Article 190). This shows that
the owner has full control over the operations of the company.
Since the liability of private enterprises is unlimited, it is easier to gain the trust of consumers and partners.
Since the investor has unlimited liability for the company, it is simple to gain the trust of partners and
consumers, and to minimize the risks of cooperation. According to Lawkey (n, d), private companies can
easily win the trust of partners when operating under unlimited liability. It's simple to raise funds and form
corporate partnerships.
A sole proprietorship often has a higher reputation than other businesses because the owner of the business
has unlimited liability to the business. According to Thuvienphapluat (2020), because the liability regime of
private enterprises is unlimited, it is easier to gain trust from customers and partners and customers can
minimize risks when cooperating.
Defect
The first disadvantage is that you have unlimited personal liability as a lone trader. This implies that you are
personally responsible for all obligations and liabilities of the company. If your company collapses or falls into
legal problems, your personal assets could be at stake. Thuvienphapluat (2022), Article 188 provides that the
owner has unlimited liability with his entire property. That is, if the company's assets are not sufficient to
pay its debts and other financial commitments, the owner will have to use his or her personal assets to pay
these debts. A real-life example is a company called Xinghua Down which specializes in the production of fur
coats in Zhejiang province, China, which went bankrupt after the 2008 financial crisis, so the owner of this
business, The total debt of the business is about 3 million USD. (Hong Hanh, 2022).
Furthermore, because private companies lack legal status, they are not allowed to complete some contracts
as required by law. In particular, it is difficult to issue any type of securities, such as this stock which is a bond,
which puts the company at a disadvantage in terms of charter capital. According to Thuvienphapluat (n, d),
a private enterprise is not allowed to issue any type of securities under Clause 2, Article 188.
14. Point out which type of business organization is the most popular in the UK and
explain the reason with good examples, evidence or data.
The private limited company, sometimes known as a limited company or Ltd, is the most common type of
business entity in the UK. Due to its adaptability, distinct legal position, limitation of liability, and the
possibility of expansion and investment, this type of corporate structure is highly favored by entrepreneurs
and business owners. It creates a distinct division between the business's assets and the owner’s personal
property. Private limited companies are accountable and transparent since they must submit annual financial
statements to the Companies House. This is required by the Companies Act 2006, which governs them.
According to GOV.UK (2019), there were 4,881,084 companies registered in March 2021. Of these, 4,539,191
were private limited liability companies, accounting for 93% of the total number of companies.
Additionally, there were 5.6 million private sector businesses in the UK at the start of 2021, of which 2.3
million were registered for VAT or PAYE. The rest were unregistered businesses, such as sole traders and
partnerships. The number of private sector businesses decreased by 6.5% compared to 2020, mainly due to
a fall in unregistered businesses (GOV.UK, 2021).
Therefore, based on these sources, we can estimate that private limited companies make up about 81% of
all registered private sector businesses in the UK (4.5 million out of 5.6 million), and about 43% of all private
sector businesses including unregistered ones (4.5 million out of 10.4 million) (GOV.UK, 2021).
Private limited corporations are a common choice among business owners, as seen by their prevalence in
today's commercial sectors and how frequently they are chosen. This kind of business is frequently chosen
due to its simplicity of management and low risk for investors, business owners, or a small number of
business members (Lawkey, n.d.). The organizational structure of this sort of business is relatively
straightforward and unconstrained in terms of business lines, which enables the business owner to easily
oversee capital contribution and transfer as well as business cooperation.
15. The most popular way to obtain the legal solution in Vietnam.
In the UK, although alternative dispute resolution methods have become more popular than in the past,
mediation is still the most widely used method. Mediation rates refer to how often it is used and how
successful it is at resolving disputes. According to BRODIES (2021), the number of mediations conducted in
England and Wales has increased by 38% (from 12,000 in the 2018 report to 16,500 in the 2020 report). The
mediation resolution rate is 93%, an improvement from 89% in the 2018 audit. This is with 73% of cases
resolved within the same day and 21% immediately. Mediation is also cheaper and faster than proceeding
to court, saving £10,000 and 14 months per case. From that, it can be seen that UK citizens still give priority
to mediation in civil, marriage and family, and labor disputes.
16. Conclusion
In conclusion, Law is very important in today's social life. This report, basic contract principles and some
company laws have been mentioned in this study. Explains the impact of the breach on the company's
business and offers a way to resolve contract scandals with mediation and legal resolution. Explain the impact
of the British Home Stores scandal in the UK on the company's business. How to raise equity capital and
explain the role of each department such as Directors, auditors, and shareholders in the company are also
provided, in addition, the report also helps readers better understand how to classify shareholders. , stocks,
and the role of each. Compare and contrast the effectiveness of 2 different sources of legal advice Mediation
and Conciliation. Presents strengths and weaknesses as well as notable solutions revealed through the
investigation of individual situations. In general, the UK market is a market worth considering and expanding
investment. Understanding corporate law can avoid unnecessary risks.
References
Advantages and disadvantages of alternative dispute resolution (ADR). Available at:
https://aspiringyouths.com/advantages-disadvantages/alternative-dispute-resolution-adr/ (Accessed: 14
June 2023).
Công ty cổ phần là gì? Điều lệ Trong công ty cổ phần? Available at: https://thuvienphapluat.vn/phap-luat-
doanh-nghiep/bai-viet/cong-ty-co-phan-la-gi-dieu-le-trong-cong-ty-co-phan-1673.html (Accessed: 14 June
2023).
Công ty trách nhiệm hữu hạn là gì? Đặc điểm Của công ty trách nhiệm Hữu Hạn. Available at:
https://thuvienphapluat.vn/chinh-sach-phap-luat-moi/vn/thoi-su-phap-luat/tu-van-phap-luat/42056/cong-
ty-trach-nhiem-huu-han-la-gi-dac-diem-cua-cong-ty-trach-nhiem-huu-han (Accessed: 14 June 2023).
Công Ty Trách nhiệm Hữu Hạn là gì ? Khái niệm và đặc điểm công Ty TNHH. Available at:
https://lawkey.vn/cong-ty-trach-nhiem-huu-han/ (Accessed: 14 June 2023).
fmacs (no date) Is there a difference between mediation and conciliation? – FMACS blog, Family Mediation
& Counselling Services. Available at:
https://fmacs.org.uk/is-there-a-difference-between-mediation-and-
conciliation/#:~:text=Mediation%20aims%20to%20reach%20an,a%20decree%20of%20civil%20court. (Acc
essed: 14 June 2023).
LawRato (no date) What is the difference between mediation and conciliation?. Available at:
https://lawrato.com/arbitration-legal-advice/what-is-the-difference-between-mediation-and-conciliation-
173717 (Accessed: 14 June 2023).
Goddard, A. (2020) A pragmatic approach to confidentiality claims in the course of litigation (no date)
Available at: https://www.addleshawgoddard.com/en/insights/insights-briefings/2021/litigation/the-brief-
case-spring-2021/pragmatic-approach-confidentiality-claims-course-litigation/ (Accessed: 14 June 2023).
Reuters, T. (2022) Problems & benefits of using alternative dispute resolution (no date) Available at:
https://legal.thomsonreuters.com/en/insights/articles/problems-and-benefits-using-alternative-dispute-
resolution (Accessed: 14 June 2023).
Thongtinphapluatdansu (2022) Hòa giải, một phương thức giải quyết tranh chấp thay thế, [Online]
Available at: https://bachkhoaluat.vn/cam-nang/11384/hoa-giai---mot-phuong-thuc-giai-quyet-tranh-chap-
thay-the (Accessed: 20 June 2023).
The National Archives (2023) Companies Act 2006, The National Archives. Available at:
https://www.legislation.gov.uk/ukpga/2006/46/contents (Accessed: 20 June 2023).
The National Assembly portal (2020) The Status of Civil Disputes between out of Civil Procedures. Available
at:
https://quochoi.vn/UserControls/Publishing/News/BinhLuan/pFormPrint.aspx?UrlListProcess=/content/tin
tuc/Lists/News&ItemID=44825 (Accessed: 21 June 2023).
The Supreme People’s Court Of The Socialist Republic Of Vietnam (2020) Works Summary in 2020 and Term
2016 - 2020; Orientation, Key Tasks of the Courts in 2021, TSP. Available at:
https://www.toaan.gov.vn/webcenter/portal/tatc/chi-tiet-chi-dao-dieu-hanh?dDocName=TAND155594
(Accessed: 21 June 2023).
Thuvienphapluat (2022) Types of businesses in Vietnam today, The library of Law. Available at:
https://thuvienphapluat.vn/chinh-sach-phap-luat-moi/vn/thoi-su-phap-luat/tu-van-phap-luat/39399/cac-
loai-hinh-doanh-nghiep-o-viet-nam-hien-nay (Accessed: 21 June 2023).
Evie Breese and Jess Staufenberg (2022). Employee rights in the UK 2022: Everything you need to know.
Available at: (Accessed: 22 June 2023).
BBC (2018). Carillion: Six charts that explain what happened. Available at: https://www.bbc.com/news/uk-
42731762?fbclid=IwAR2Ul9NyomI8ug4g9ZyvcSslhSep1IIuvSfPDVhtwZEtuDMvT9-VmEdcAjk (Accessed: 22
June 2023).
Hayes, A. (2023) “Shareholder (Stockholder): Definition, Rights, and Types,”. Available at:
https://www.investopedia.com/terms/s/shareholder.asp (Accessed: 14 June 2023).
Dung, Đ.T (2022). Điều kiện, Trình tự thủ tục phát hành cổ phiếu ra công chúng, Luật Dương Gia. Available
at: https://luatduonggia.vn/dieu-kien-trinh-tu-thu-tuc-phat-hanh-co-phieu-ra-cong-chung/ (Accessed: 23
June 2023).
Tâm, L. (no date) Nghiên cứu, trao đổi, trang thông tin tuyên truyền, phổ biến pháp luật. Available at:
https://pbgdpl.hanoi.gov.vn/nghien-cuu-trao-doi/-/asset_publisher/sxBNLsQSLyY8/content/cong-ty-co-
phan-va-uu-the-ve-huy-ong-von (Accessed: 23 June 2023).
ADCO Law (2021) Litigation and Its Advantages. Available at: https://adcolaw.com/blog/litigation-and-its-
advantages/ (Accessed: February 28, 2023).
Court (2023) Encyclopædia Britannica. Available at: https://www.britannica.com/topic/court-
law (Accessed: 23 June 2023).
Thuvienphapluat (2022) Điều Kiện Thành Lập Doanh Nghiệp tư nhân? Hồ sơ thủ tục như thế nào?. Available
at: https://thuvienphapluat.vn/phap-luat/dieu-kien-thanh-lap-doanh-nghiep-tu-nhan-ho-so-thu-tuc-nhu-
the-nao-1017.html (Accessed: 23 June 2023).
VnExpress (2022) Cụ bà từ chối tuyên bố phá sản, quyết trả nợ 3 triệu USD. Available at:
https://vnexpress.net/cu-ba-tu-choi-tuyen-bo-pha-san-quyet-tra-no-3-trieu-usd-4546128.html (Accessed:
23 June 2023).
Ahluwalia, N. (2021) Who pays the costs of litigation?. Available at:
https://www.saunders.co.uk/news/who-pays-the-costs-of-
litigation/#:~:text=Litigation%20is%20often%20an%20expensive,unpredictable%2C%20even%20to%20seas
oned%20lawyers. (Accessed: 23 June 2023).
Burke, C. (2017) Advantages & disadvantages of specialized courts. Available at:
https://legalbeagle.com/8398649-advantages-disadvantages-specialized-courts.html (Accessed: 23 June
2023).
Jarvis, H. (2020) Advantages and disadvantages of going to court. Available at:
http://aonenotaryservice.com/advantages-and-disadvantages-of-going-to-
court/#:~:text=Disadvantages%3A%201%201%29%20By%20going%20to%20court%20the,to%20solve%20t
heir%20disputes.%20...%20C%C3%A1c%20m%E1%BB%A5c%20kh%C3%A1c (Accessed: 23 June 2023).
A pragmatic approach to confidentiality claims in the course of litigation (2021) Addleshaw Goddard.
Available at: https://www.addleshawgoddard.com/en/insights/insights-briefings/2021/litigation/the-brief-
case-spring-2021/pragmatic-approach-confidentiality-claims-course-litigation/ (Accessed: 23 June 2023).
Hợp đồng là gì? Các loại hợp đồng thông dụng. Available at: https://thuvienphapluat.vn/chinh-sach-phap-
luat-moi/vn/thoi-su-phap-luat/tu-van-phap-luat/35423/hop-dong-la-gi-cac-loai-hop-dong-thong-dung
(Accessed: 23 June 2023).
Employment status (no date) GOV.UK. Available at: https://www.gov.uk/employment-
status/worker#:~:text=Employment%20rights&text=getting%20the%20National%20Minimum%20Wa
ge,minimum%20length%20of%20rest%20breaks (Accessed: 23 June 2023).
Sir Philip sold BHS to Dodge Pension Cost, says regulator (2017) BBC News. Available at:
https://www.bbc.com/news/business-40421414 (Accessed: 23 June 2023).
Hayes, A. (2023) “Shareholder (Stockholder): Definition, Rights, and Types,” Investopedia, 27 February.
Available at: https://www.investopedia.com/terms/s/shareholder.asp (Accessed: 23 June 2023).
IDAS (2023) Why does it take so long for cases to come to court? Available at: https://idas.org.uk/bwl-
advanced-faq/why-does-it-take-so-long-for-cases-to-come-to-court/ (Accessed: 23 June 2023).
Judgment Library (2018) 524/2018/HSPT date 13/08/2018, Judgment Library. Available at:
https://thuvienphapluat.vn/banan/ban-an/ban-an-5242018hspt-ngay-13082018-ve-toi-tham-o-tai-san-
74395 (Accessed: 23 June 2023).
Judgment Library (2021) 02/2021/LĐ-ST date 25/01/2021 about the dispute claiming compensation for
damage caused by unilateral termination of the labor contract, Judgment Library. Available at:
https://thuvienphapluat.vn/banan/ban-an/ban-an-022021ldst-ngay-25012021-ve-tranh-chap-yeu-cau-boi-
thuong-thiet-hai-do-don-phuong-cham-d-182336 (Accessed: 23 June 2023).