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Chapter 5-9 (Chapter 7 - Employment Law (Implications of type: (Tax &…

- - - - Unreasonable to hold a firm of auditors liable to an indeterminant group of people, amount for indeter.time.
      - Not responsible for credit references
      - Accountants must be careful in any take over advice
      - Audit reports shouldnt be used for investment decisions.
        Normal to use disclaimer in reports, duty to company &
        not individual shareholders
      - Incorporate - to turn a partnership into a Limited company
      - Limited Liability partnership - mixture of both, partners can protect personal assets in event partners found liable;
        limit on how much can contribute.
- - - - Employee resigns as employer breaches their
        employment contract:
        
        reduction in pay rate
        
        Change in nature of job
        
        Failure to follow disciplinary procedures
        
        no proper working environment
        
        no suitable work
    - - Contractual term is broken in dismissal process
        
        eg not giving proper notice
      - But not wrong if justified for following reasons:
        
        Disobedience
        
        Dishonesty
        
        Incompetence
        
        Immorality
        
        Drunkenness
        
        Misconduct: accepting money, assault, disclosure
        of info.
    - - Automatically unfair(without question):
        
        Completed prison sentence
        
        Dismissed on transfer of ownership
        
        Exercising rights re length of working day
        
        Insistence on minimum wage
        
        Refusing to work on Sundays
        
        Taking steps to ensure H&S
        
        Trade union membership
        
        Whistle blowing
      - Automatically Fair
        
        Unofficial strike action
        
        Actions threatening national security
      - Potentially Fair
        
        Incapable
        
        Not competent to do work for which qualified for
        
        Redundancy
        
        Legal reasons: losing drivers licence
        
        Losing qualifications , eg disqualified as a doctor
    - - Dismissal as employer needs to reduce workforce
      - Reasons: new technology, job doesnt exist anymore,
        need to reduce labour costs, business closing down.
      - If 20 or fewer made redundant, requires individual consultation.
        (direct and looks at alternative to redundancy)
        If doesn't take place, maybe unfair dismissal
      - More than 20 - Collective Redundancy.
        Requires employer to consult with employees' representative.
        If not consultation, claim to Employment Tribunal -claim up to 90days pay. Selection must be fair &objective, or automatically unfair dismissal!
- - - - Accounts & Credit
      - Division of profits
      - Drawings
      - Capital - fixed/floating(variable)
      - Interest
      - Salaries
      - Current & capital bank accounts
      - Goodwill - how to calculate when partner dies
      - Time limit of partnership
  - - - Death of a partner(end of, and start of another)
      - Insolvency - firm/partner becomes bankrupt
      - Share - partner in debt, and can onlyoffer his share of firm(all has)
      - Sending of notice -
      - Objective of venture is over
      - Lapse of time - expiration of fixed period
    - - Unable to carry out share of partnership agreement
      - Termination by court under grounds of just & equitable
      - Insanity - partner alleged to be insane
      - Only continuing as a loss (no view to profit)
      - Nafarius Conduct - partner's conduct likely to affect carrying on of partnership - bad reputation for firm
      - Shirty conduct - partner persistently in breach of partnership agreement
  - - - At least 1 general partner (unlimited liability) & 1 limited partner
      - Must be registered with registrar of companies
      - Limited partner cant take part in management of firm
      - If firm becomes bankrupt, only general partners liable for firms debt
    - - Combination of advantages of partnership & limited company.
      - Registered with registrar of companies
      - Must file financial statements and be audited.
      - As a separate legal entitiy, partners arent liable to pay firms debts. But there are provisions for worngful and fraudulent trading. If partner found guilty, courts may suggest amount to pay.