LW1LBS: Law and Business

Module code: LW1LBS

Module provider: School of Law

Credits: 20

Level: Level 1 (Certificate)

When you'll be taught: Semester 1

Module convenor: Dr Samuel Law, email: sauwai.law@reading.ac.uk

Pre-requisite module(s): This module is not available to LLB students. (Open)

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2024/5

Available to visiting students: Yes

Talis reading list: No

Last updated: 19 September 2024

Overview

Module aims and purpose

This module aims to provide students with an understanding of the principles of English law which are relevant in a commercial context and particularly relevant to students studying for accountancy qualifications. The content will align with relevant professional accreditation requirements. 

Module learning outcomes

By the end of the module, it is expected that students will be able to:

1. Explain the nature of contractual agreements, the agency relationship and the consequences of negligence
2. Understand the legal implications of incorporation, including the roles of shareholders and directors, and the main implications of insolvency law
3. Identify instances of criminal behaviour that may be encountered by professional accountants
4. Identify other key areas in which the law affects the role and work of the professional accountant

Module content

Areas covered in this module will usually include (content may vary slightly year on year).

1. The Impact of Civil Law on Business and Professional Services

Students will be able to explain the nature of contractual agreements, the agency relationship and the consequences of negligence.

In the assessment, students may be required to:

Contract

1. Recognise when a legally binding contract exists between two parties and how a contract may be enforced
2. Identify the circumstances under which a contract can be terminated and possible remedies for breach of contract

Agency

1. Identify the role of agents, their duties and rights, and their authority to enter contracts on behalf of principal
2. Identify the nature of a partnership and the authority given to partners

Negligence and Liability

1. Identify instances and consequences of negligence (particularly negligent misstatement) in a given scenario
2. Identify instances and consequences of vicarious liability in a given scenario

2. Company and Insolvency Law

Students will be able to understand the implications of incorporation, including the roles of shareholders and directors, and the main implications of insolvency law.

In the assessment, students may be required to:

1. Identify the differences between unincorporated businesses (sole traderships and partnerships), limited liability partnerships and companies, show the advantages and disadvantages of incorporation and recognise the circumstances when the veil of incorporation can be lifted
2. Identify the procedures required to form a registered company or a limited liability partnership, including any practical considerations, and the nature and contractual force of a company’s memorandum and articles of association and identify the advantages and disadvantages of off-the-shelf companies
3. Identify the administrative consequences of incorporation or the formation of a limited liability partnership including requirements regarding statutory books, accounts, meetings and the role of the company secretary
4. Identify the procedures for the issue of shares, including issues at a premium and pre-emption rights
5. Identify the requirements of the Companies Act 2006 in respect of companies’ statutory accounts and audit, including the exemptions for small and medium-sized companies and micro-entities
6. Identify aspects of capital maintenance including:
   • Reduction of capital
   • Redemption and purchase of a company’s own shares
   • Financial assistance for the purchase of a company’s own shares
   • Distribution of profits
7. Identify share transfer requirements and disclosure requirements
8. Recognise how a shareholder can influence the management of a company through meetings and resolutions, including shareholders’ rights to requisition a meeting
9. Identify the various statutory rights of shareholders to challenge the management of the company under the Companies Act 2006 and the Insolvency Act 1986
10. Identify the rights and duties which a member of a limited liability partnership possesses
11. Identify the ways in which a director may be appointed and removed
12. Identify directors’ duties, explaining the consequences of any major breach
13. Identify the powers of directors and in what circumstances they will bind the company in a contract with third parties
14. Identify the nature of fixed and floating charges, the rationale for the selection of a particular type of charge and the procedures for registering them
15. Identify the nature and function of:
    • Company voluntary arrangements
    • Administration orders
    • Receivership
    • Compulsory and voluntary liquidation (including relevance of secured debt); and identify the main implications of insolvency law, including:
      • The principal means of termination of companies or other business entities
      • The priorities on a liquidation of the distribution of assets including rights of creditors and employees (including secured assets)
      • Bankruptcy and other responses to personal insolvency

3. The Impact of Criminal Law on Business and Professional Services

Students will be able to identify instances of criminal behaviour that may be encountered by professional accountants.

In the assessment, students may be required to:

1. Recognise the relationships and interaction between civil and criminal law, legal principles, legislation, case law, ethics and ethical codes
2. Identify offences and their consequences under the anti-money laundering legislation, identify the obligations on professional accountants to detect and help prevent money laundering, and select appropriate courses of action to protect professional accountants from criminal liability
3. Identify instances and consequences of bribery
4. Identify instances and consequences of fraud in a given scenario, including:
   • The effect of the Fraud Act 2006
   • Threats to consumers through cybercrime
   • Offences created under the Computer Misuse Act 1990
   • Fraudulent trading
   • Insider dealing
5. Identify circumstances where accountants will be protected from dismissal and victimisation if they raise concerns about malpractice in the workplace

4. The Impact of Law in the Professional Context

Students will be able to identify other key areas in which the law affects the role and work of the professional accountant, and understand when relevant laws and regulations may be applicable.

In the assessment, students may be required to:

Information and its Legal Environment

1. Identify the key requirements of the Data Protection Act 2018, on the use of personal information and how the Act can affect the manner in which information systems are used by businesses
2. Recognise the requirements of protecting intellectual property, including digital contexts

Employment Law and Social Security Law

1. Identify who is an employee and the main legal consequences of employment status
2. Identify the key features of employment contracts and recognise circumstances in which an employment contract may be terminated and the consequences arising
3. Identify when dismissal constitutes:
   • A wrongful dismissal
   • An unfair dismissal
4. Identify the circumstances where an employee can claim a statutory redundancy payment
5. Identify employers’ obligations under social security law
6. Identify the responsibilities of employers under the Equality Act 2010

International Law and Regulations

1. Recognise situations when laws and regulations other than English law may be applicable to an organisation, including:
   • International regulation of trade between organisations (International Chamber of Commerce (ICC) Incoterms, the UN Convention on Contracts for the International Sale of Goods)
   • Sharia law relating to Islamic finance

Structure

Teaching and learning methods

This module will be taught through a combination of lectures and workshops, with additional elements to support student learning being available on-line.  Students will be set assigned reading material in relation to each topic and in preparation for workshops. The module requires robust participation in workshops and requires a thorough understanding of the materials 

Study hours

At least 34 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

Students need to achieve an overall module mark of 40% to pass this module.

This module contributes to the Management Information module of the ACA Professional Stage Knowledge level. In order to apply for ICAEW credit for prior learning, a minimum mark of 50% must be obtained in this module.

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Students will get feedback from seminar questions and a peer marked mock exams.

Reassessment

Additional costs