Subject (SQ): BUSINESS AND CORPORATE LAW

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Explain advantages of a company limited by shares under the Companies Act.

Section 9 of the Companies Act, 1963 (Act 179) provides that a company limited by shares is “a company having the liability of its members limited to the amount, if any, unpaid on the shares respectively held by them”.

Required:

State and explain TWO (2) advantages that exist for a company limited by shares.

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You're reporting an error for "BCL – L1 – Q51 – Alternative forms and constitutions of business organisations"

Advise why a firm should bear the cost of a partner's expense for a company car tyre.

Kweku is a partner of an Accounting Firm. The firm’s office is in Kumasi. In May 2019, Kweku was assigned an approved accounting duty outside Kumasi with the use of the Firm’s car. During the journey the car had a burst tyre. The driver of the car for unexplained reasons had no spare tyre on the car. He, therefore, recommended the purchase of a brand-new tyre which Kweku did with his personal money. He obtained a receipt in the name of the Firm. Kweku sought for refund of his money amounting to GH₵1,280 for the tyres bought. The Managing Partner refused the refund saying it was the sole responsibility for Kweku to bear the expenditure.

Required:

(a) Advise the Manager as to why the Firm should bear the full or part of the cost and not only Kweku.

(b) Advise Kweku why it is not the sole responsibility of the firm to bear the cost.

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You're reporting an error for "BCL – L1 – Q50 – Alternative forms and constitutions of business organisations"

Explain steps to form a company and its legal constitution requirements.

Explain the steps involved in the formation of a company and the legal requirements for its constitution.

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You're reporting an error for "BCL – L1 – Q49 – Alternative forms and constitutions of business organisations"

Can probationary and casual workers at Apex Preparatory Academy succeed in a legal action for unfair termination compensation?

Zuri Osei and Ofori Nartey were employed by Apex Preparatory Academy to teach Mathematics and Social Science, respectively. By the terms of their employment, the two were to be on probation for eight (8) months before they could be fully appointed. Similarly, Amo Quaye and Kofi Yeboah were engaged by the school as casual workers charged with the responsibility of keeping the school compound and classrooms clean. After the period of probation, the school authorities informed Zuri Osei and Ofori Nartey that the school was not interested in giving them permanent appointments because of unsatisfactory performance. On the other hand, Amo Quaye and Kofi Yeboah had their appointment terminated without any reason. The four (4) workers intend to take legal action against the school for compensation, accusing it of unfairly terminating their respective appointments.

Required:

Explain whether the workers will succeed in their respective intended legal action.

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You're reporting an error for "BCL – L1 – Q48 – Employment Law"

Assess legality of strike actions by DESA Ltd and ZEWU Industries Ltd.

Workers of DESA Ltd embarked on a strike action in support of a strike action embarked upon by ZEWU Industries Ltd. The workers of ZEWU Industries Ltd declared the strike action after Management of their company ignored their demands for improved COVID-19 safety measures, among other demands. Workers of DESA Ltd, in their solidarity action, stated that the conditions under which they also work were similar to those for which workers of ZEWU Industries Ltd work and thus embarked upon the strike action. Prior to the decision to resort to an industrial action, the leaders of the workers union of ZEWU Industries Ltd orally told management of the company that they were proceeding with the industrial strike. The parties failed to agree to refer the dispute to voluntary arbitration, as provided in the conditions of service of employees resulting in the workers of ZEWU Industries Ltd going ahead with the industrial action.

Required:

Explain whether the strike action resorted to by the workers of DESA Ltd and ZEWU Industries Ltd were justified

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You're reporting an error for "BCL – L1 – Q47 – Employment Law"

Advise on unfair termination of James Quayle at SkyPure Ltd due to procedural error.

James Quayle, the Deputy Sales and Marketing Manager of SkyPure Ltd, admitted at the Disciplinary Committee hearing that he sold the company products above the approved price and pocketed the difference. He pleaded that Management should temper justice with mercy. His plea was not taken, and he has accordingly been dismissed in line with the Company’s Conditions of Service. Five (5) months later, a member of the senior staff association has advised James Quayle to file a suit for unfair termination as the termination letter was not signed by the Managing Director but the Head of Department as required by the Conditions of Service.

Management is adamant but has approached you for an opinion. You are to advise management in the context of the Labour Act, 2003 (Act 651) and to draw management’s attention to the consequences of unfair termination.

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Advise on compensation for Fred's injury and legality of his termination due to disability.

Fred requested a ride in an official car to run an errand on a route that the official car was going. While in the car, Fred ignored caution by the driver not to rest his arm through the window of the car with the glass rolled down.

The driver of the official car decided to race another vehicle with the support of Fred and in the process an approaching car ran into the official car and injured Fred whose arm was severely mutilated.

Fred is contemplating asking the company to compensate him for his injury indicating that the accident occurred while in the official vehicle. The company on the other hand intends to terminate Fred’s appointment on the grounds that he has become disabled.

(a) Please advise management on whether compensation should be given to Fred and whether there is justification in law for Fred’s termination.

(b) Explain steps a staff should take when there is imminent hazard at the workplace and indicate the protection available to the staff.

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You're reporting an error for "BCL – L1 – Q45 – Employment Law"

Advise on employee's breach of contract by working for competitor during leave.

(a) Kofi Mensah, a member of staff in your auditing firm requested for and was granted part of his annual leave by management. Thereafter, he submitted a resignation letter to management. A week into his leave, management recalled him in writing to conduct an important exercise. He replied saying that he was unable to come to work. It has been confirmed that Kofi Mensah was unable to return to work because he had started work with a competitor firm.

The service conditions prohibit any worker from working with a competitor within two years after terminating their contract of employment with your firm. Management has referred the issue to you for your advice in reference to the Labour Act, 2003, (Act 651) and other relevant laws.

(b) Discuss two (2) remedies available to those who have been subject to unfair dismissal.

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You're reporting an error for "BCL – L1 – Q44 – Leave and Restrictive Covenant"

Explain how employment law tackles workplace discrimination and harassment.

How does employment law address issues of workplace discrimination and harassment?

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You're reporting an error for "BCL – L1 – Q43 – Workplace Discrimination"

Discuss key principles of employment law and employee workplace rights.

Discuss the key principles of employment law and the rights of employees in the workplace.

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You're reporting an error for "BCL – L1 – Q42 – Employment Law Principles"

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