Business Law

Course overview

Business Law provides a fundamental grounding in the structure and principles of English law as it relates to business. It also provides an understanding of EU law and its impact on English law and principal US legislation impacting corporates. Legal issues are an integral part of treasury management; and this paper ensures a broad understanding of the application of relevant law is gained.

Business Law is only available as part of the AMCT Diploma in Treasury. It is not a standalone qualification.

Business Law is one of four compulsory foundation papers which comprise stage one of the AMCT Diploma in Treasury – the ACT’s core treasury qualification. Only students enrolling on AMCT can book this paper.

Exemptions

• Exemptions from stage one of AMCT are available where prior knowledge can be demonstrated in the form of a relevant qualification.
• Automatic exemptions from stage one of AMCT is available for all UK accountancy qualifications under the fast-track route.

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* Fees for these courses may be subject to change

Learning outcomes

Following completion of the course you will have a clear understanding of:

• The origins and the basic principles of English law and the inter-action between European and English law.
• The main structure and content of company law relating to companies, securities and finance professionals.
• The various procedures for changing the legal status or ownership of companies.
• The basic principles of the law of contract, and the nature of guarantees and agency.
• The basic principles of liquidation administration and receivership.
• Those aspects of banking law relevant to corporate funding.
• Some of the key features of other legal systems including those of the EU and US.
• Some of the key differences between English law and other legal codes including EU and US legislation.

Course content

Study Unit 1 – Nature and sources of law

The nature and purpose of law
The sources of law
Parliamentary legislation
Delegated legislation
European Union ‘EU’ law
Human rights
Application of legislation
Judicial precedent
The UK court structure

Study Unit 2 – Company Law

Business associations
Legal personality
The Memorandum and Articles of Association
The formation of companies
The administration of companies
Directors
The company’s capital
Debentures
Maintaining capital
Raising capital
Establishing an overseas presence

Study Unit 3 – Company reconstructions, schemes of arrangement and takeovers

Methods of reconstruction
Schemes of arrangement under sections 425-427A Companies Act 1985
Reconstruction under section 110 Insolvency Act 1986
Takeover offer
The city code on takeovers and mergers
The rules governing substantial acquisition of shares (SARs)
Monopolies and merger control

Study Unit 4 – Liquidation, administration and receivership

Introduction to corporate insolvency
Company voluntary arrangement
Administration orders
Administrative receivership
Liquidation
Directors
Insolvency practitioners
Employees
Statement of affairs
UK insolvency and the foreign company
Overview of US bankruptcy rule

Study Unit 5 – Contract

What is a contract?
The essential elements of a valid contract
Consensus in idem
Consideration
Consent – intention to contract
Capacity
Privity of contract
Form of a contract
No legal prohibition
Misrepresentation
Other factors affecting the validity of a contract
The terms of a contract
Exclusion clauses
Interpreting a contract
Discharging a contract
Remedies for breach of contract

Study Unit 6 – Agency and partnership

The law of agency
Introduction
Creation of agency
Duties of an agent
Rights of an agent
Authority of an agent
Disclosed and undisclosed agency
Termination of agency
The law of partnership
Introduction
Partnership defined
Formation of partnership
The mutual rights and duties of partners
Partners’ authority
Partners’ liability
Dissolution of partnership
Limited liability partnership
Limited partnership
Agency and partnership – the international dimension

Study Unit 7 – Guarantees, warranties and indemnities

The obligation of guarantee
Extent of guarantor’s liability
The rights of a guarantor
Terminating the contract of guarantee
Implications of guarantees on the borrowing by companies
Implications of guarantees on annual published accounts
Letters of comfort
Warranties and disclosures
Indemnities

Study Unit 8 – Banking Law

UK banking regulation
Negotiable instruments
Promissory notes
Bills of exchange
Presentment
Dishonour
Avals and forfaiting
Forgery
Business usage of negotiable instruments
Cheques
Electronic fund transfers
Uniform commercial code and EFT
Lien
Appropriation and set off

Study Unit 9 – Compliance

The London Stock Exchange
The Alternative Investment Market (AIM)
Regulation of the Financial Services Industry
Financial crimes

Study Unit 10 – EU and US financial and banking law

International law
The European banking regime
Money laundering – the international dimension
The US Securities framework
Offshore havens

Study tools

• A comprehensive course manual
• e-learning website providing access to the course manual, past/pilot papers, glossary, student resources and ask the tutor

What’s included: Course manual (print and online) and access to the e-learning website.

You will need: Access to a computer with internet connection.

Entry requirements

• Good standard of english: due to the course being written and examined in English, students will need to possess a good standard of English.
• Internet Browser version: the eLearning website is an important part of this course as you will be able to access the online course manual, discussion forum and further information. Therefore you do need the latest browser to access the content. We suggest one of the following browsers: Internet Explorer 7 or 8, Firefox 3 or Google Chrome to view the content correctly.

Tuition and revision

Optional tuition

The four day optional tuition course covers core topics. Tuition has been tailored to cover the key areas of the course – reinforcing and improving knowledge. Tuition days complement your home study; each day is intensive, covering a number of topics in detail with lecturers, worked examples and tutorial sessions.

You can book onto the optional tuition course when you enrol or up to10 days before the start of the courses.

• Meet the tutors

Assessment and examination

Candidates are assessed by a three-hour written exam.

• Back to AMCT