hopelessstudent0
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#1
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#1
Hi there,

I have been given an assignment for Company Law and I am completely lost, can anyone shed any light on it?

1. The problems that the doctrine of limited liability present to unsecured creditors in a limited company; and

2. Current law and the view that the courts have failed to give protection to the business creditors which should be the corollary of the privilege of limited liability.

Sitting in lectures I thought I was doing okay but as per usual as soon as an assessment shows up I am completely clueless - so any help would be VERY much appreciated!!

Thank you in advance :-)
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999tigger
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#2
Report 4 years ago
#2
(Original post by hopelessstudent0)
Hi there,

I have been given an assignment for Company Law and I am completely lost, can anyone shed any light on it?

1. The problems that the doctrine of limited liability present to unsecured creditors in a limited company; and

2. Current law and the view that the courts have failed to give protection to the business creditors which should be the corollary of the privilege of limited liability.

Sitting in lectures I thought I was doing okay but as per usual as soon as an assessment shows up I am completely clueless - so any help would be VERY much appreciated!!

Thank you in advance :-)
Start by reading your textbook so you understand the basics.

How much research have you done?

Then look at the essay title. get a piece of paper and start writing down the issues parts 1 and 2 are asking you to comment on? What do you think they are? You must know because you are an undergraduate lawyer who will have sat many exam to a high level to get this far?

1. What do you think the obvious areas that part 1 and 2 are asking you to look at? Why does limited liability pose a problem to unsecured creditors? How does it work and what are the consequences? Do you have any views as to whether its effective or fair?

2. Do some research on unlimited liability and whatever the latest case law is. What have the judges said? What have the issues been in those cases? Re-examine limited liability and consider whether you think the balance is correct.
Perhaps company law has other aspects which protect the business creditor and perhaps there are arguments for why the law is as it is?

Once you have done the basic reading you should be forming an idea. Add some reasonable research which is more on point and then you can get an understanding for the area plus what your essay plan might contain.
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hopelessstudent0
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#3
Report Thread starter 4 years ago
#3
(Original post by 999tigger)
Start by reading your textbook so you understand the basics.

How much research have you done?

Then look at the essay title. get a piece of paper and start writing down the issues parts 1 and 2 are asking you to comment on? What do you think they are? You must know because you are an undergraduate lawyer who will have sat many exam to a high level to get this far?

1. What do you think the obvious areas that part 1 and 2 are asking you to look at? Why does limited liability pose a problem to unsecured creditors? How does it work and what are the consequences? Do you have any views as to whether its effective or fair?

2. Do some research on unlimited liability and whatever the latest case law is. What have the judges said? What have the issues been in those cases? Re-examine limited liability and consider whether you think the balance is correct.
Perhaps company law has other aspects which protect the business creditor and perhaps there are arguments for why the law is as it is?

Once you have done the basic reading you should be forming an idea. Add some reasonable research which is more on point and then you can get an understanding for the area plus what your essay plan might contain.
Thank you for your reply.

I have researched a lot on this but unfortunately any textbook I've tried (I have tried a LOT) doesn't seem to have much on unsecured creditors!

Bit of a silly question maybe, but is the only problem for unsecured creditors that they may not get paid or get paid very little (limited liability)?

We have been given an article to look at for the 2nd one but I'm still a bit unsure as to what it even means!!

I have the basic reading done, a lot of research done but still just a bit stuck!!

Thanks again
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999tigger
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#4
Report 4 years ago
#4
(Original post by hopelessstudent0)
Thank you for your reply.

I have researched a lot on this but unfortunately any textbook I've tried (I have tried a LOT) doesn't seem to have much on unsecured creditors!

Bit of a silly question maybe, but is the only problem for unsecured creditors that they may not get paid or get paid very little (limited liability)?

We have been given an article to look at for the 2nd one but I'm still a bit unsure as to what it even means!!

I have the basic reading done, a lot of research done but still just a bit stuck!!

Thanks again
You should be looking at the basics of insolvency. If a business is liquidated or goes into administration what happens? Just do some googling on unsecured creditors losing out. is that fair? I i lend your company £1 million unsecured and I lose it because you go into liquidation> What are the issues, is t fair and if so why?

The second part is a spin on the first which all comes back to the concept of limited liability, why you have it and whether its right for business creditors to lose out or not? Is it fair yes or no? Are there reasons? If so what are they? I f you dont think its fair then what protection should businesses get and how would that affect everyone else? Are there other ways to protect creditors? What does company law say?
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