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Christopher and Rai are setting up a new business online that will sell goods to the UK and to the EU. Christopher wants to set up an incorporated business whilst Rai wants to set up an unincorporated business. Christopher argues that they

Company Law | OTHM Level 7 International Business Law Assignment 2026

OTHM Level 7 Diploma in International Business Law

Company Law

Unit Reference Number J/618/7920
Unit Title Company Law
Unit Level 7
Number of Credits 20
Guided Learning Hours (GLH) 200 hours
Total Qualification Time (TQT) 100 hours
Mandatory / Optional Mandatory
Sector Subject Area (SSA) 15.5 Law and legal services
Unit Grading Structure Pass/Refer

Unit Aims

This unit aims to provide information to learners about English Law relating to registered companies including both private and public limited companies. Learners will gain knowledge and understanding about the legal issues affecting companies, the rights and obligations of shareholders and directors and the legal procedures relating to corporation liquidation.

Learning Outcomes and Assessment Criteria

Learning Outcomes – the learner will: Assessment Criteria – the learner can:
1. Understand legal issues affecting companies through the analysis of characteristics, incorporation, functions and regulatory frameworks. 1.1 Analyse the characteristics of: the sole trader; partnership; public and private companies.
  1.2 Evaluate different functions of EU companies.
  1.3 Evaluate regulatory frameworks of incorporation of UK and EU companies.
  1.4 Evaluate the articles of association and how these can be enforced.
  1.5 Analyse the effect of the corporate veil and how this can be lifted.
2. Understand the rights and obligations of directors. 2.1 Evaluate the legal nature, roles, powers and liabilities of shareholders and directors towards the company.
  2.2 Assess the consequences of a breach in directors` duties in company law.
  2.3 Analyse the directors` responsibilities to creditors of the company in financial distress.
  2.4 Analyse the mechanisms for disqualifications of directors.
3. Understand the rights of shareholders and minority shareholders. 3.1 Analyse the rights of shareholders in public and private limited companies.
  3.2 Explain the rights of members in voting.
  3.3 Analyse minority shareholder protection.
4. Understand the legal procedures relating to corporation liquidation. 4.1 Evaluate the role of the auditor.
  4.2 Analyse the winding up process and dissolution including powers and duties of the liquidator.
  4.3 Assess the priority of creditors in a winding up process.
  4.4 Evaluate the role of licensed Insolvency Practitioners.

Task 1 of 4

Unit Learning Outcome: LO 1 Understand legal issues affecting companies through the analysis of characteristics, incorporation, functions and regulatory frameworks.

Task Assessment Criteria to be covered: 1.1, 1.2, 1.3, 1.4, 1.5

Assignment Brief and Guidance

Christopher and Rai are setting up a new business online that will sell goods to the UK and to the EU.

Christopher wants to set up an incorporated business whilst Rai wants to set up an unincorporated business. Christopher argues that they would be better protected if their business was incorporated and they would be able to establish their business with clear organisational structures.

Rai argues that any protection can be stripped away and that the regulations around incorporations are too complicated. He also argues that it would be very difficult to change the nature of the business as once it is created it is `set in stone`.

They have asked for you to write a report highlighting the issues above.

You must ensure the report:

  1. analyses the characteristics of:
    • the sole trader
    • partnership
    • public and private companies
  2. evaluates different functions of EU companies.
  3. evaluates regulatory frameworks of incorporation of UK and EU companies.
  4. evaluates the articles of association and this can be enforced.
  5. analyses the effect of the corporate veil and how this can be lifted.

Learners must:

  • Show knowledge and understanding of the subject area
  • Provide references to relevant case law and or legislation wherever appropriate.
  • Be able to support answers and show evidence of wider reading appropriately

Delivery and Submission

The submission is in the form of a report written in Word format.

The recommended word limit is 1000 words excluding diagrams, references, and appendices.

Learners are expected to adhere to the word count. A 10% leeway either side of this range is permitted before the assessor is instructed to stop reading any further.

Referencing

You should use and cite a range of case law, academic and reliable sources.

A comprehensive Harvard style reference list must be included at the end of the work.

Task 2 of 4

Unit Learning Outcome: LO 2 Understand the rights and obligations of directors.

Task Assessment Criteria to be covered: 2.1, 2.2, 2.3, 2.4

Assignment Brief and Guidance

You have been contracted as a consultant to a business which operates as a partnership. The partners are considering converting their business to a limited company.

You have been tasked with producing a report which will help the partners to understand the rights and legal obligations of directors of limited companies.

The partners have specifically asked you to report on the following.

  1. An evaluation of the legal nature, roles, powers and liabilities of shareholders and directors towards the company.
  2. An assessment of the consequences of breaching directors` duties as stated in company law.
  3. An analysis of the directors` responsibilities to creditors of the company who are in financial distress.
  4. An analysis of the mechanisms for the disqualification of directors.

Learners must:

  • Show knowledge and understanding of the subject area
  • Provide references to relevant case law and or legislation wherever appropriate.
  • Be able to support answers and show evidence of wider reading appropriately

Delivery and Submission

The submission is in the form of a report written in Word format.

The recommended word limit is 1000 words excluding diagrams, references, and appendices.

Learners are expected to adhere to the word count. A 10% leeway either side of this range is permitted before the assessor is instructed to stop reading any further.

Referencing

You should use and cite a range of case law, academic and reliable sources.

A comprehensive Harvard style reference list must be included at the end of the work.

Task 3 of 4

Unit Learning Outcome: LO 3 Understand the rights of shareholders and minority shareholders.

Task Assessment Criteria to be covered: 3.1, 3.2, 3.3

Assignment Brief and Guidance

The partners from task 2 are also debating whether to remain a private limited company (Ltd) or plan to become a public limited company (PLC). They are aware that there are different rights of shareholders dependent on whether a business is Ltd or a PLC.

To help them clarify their understanding of shareholders and their rights they have further tasked you to produce a report which:

  1. analyses the rights of shareholders in public and private limited companies.
  2. explains the rights of members in voting.
  3. analyses minority shareholder protection.

Learners must:

  • Show knowledge and understanding of the subject area
  • Provide references to relevant case law and or legislation wherever appropriate.
  • Be able to support answers and show evidence of wider reading appropriately

Delivery and Submission

The submission is in the form of a report written in Word format.

The recommended word limit is 1000 words excluding diagrams, references, and appendices.

Learners are expected to adhere to the word count. A 10% leeway either side of this range is permitted before the assessor is instructed to stop reading any further.

Referencing

You should use and cite a range of case law, academic and reliable sources.

A comprehensive Harvard style reference list must be included at the end of the work.

Task 4 of 4

Unit Learning Outcome: LO 4 Understand the legal procedures relating to corporation liquidation.

Task Assessment Criteria to be covered: 4.1, 4.2, 4.3, 4.4

Assignment Brief and Guidance

Write an essay which is focused on the legal procedures relating to the liquidation of an incorporated business.

You must ensure the essay:

  1. evaluates the role of the auditor.
  2. analyses the winding up process and dissolution including powers and duties of the liquidator.
  3. assesses the priority of creditors in a winding up process.
  4. evaluates the role of licensed Insolvency Practitioners.

Learners must:

  • Show knowledge and understanding of the subject area
  • Provide references to relevant case law and or legislation wherever appropriate.
  • Be able to support answers and show evidence of wider reading appropriately

Delivery and Submission

The submission is in the form of an essay written in Word format.

The recommended word limit is 1000 words excluding diagrams, references, and appendices.

Learners are expected to adhere to the word count. A 10% leeway either side of this range is permitted before the assessor is instructed to stop reading any further.

Referencing

You should use and cite a range of case law, academic and reliable sources.

A comprehensive Harvard style reference list must be included at the end of the work