Laws Governing Business Entities Laws Governing Business Essay
- Length: 4 pages
- Sources: 5
- Subject: Business
- Type: Essay
- Paper: #34619310
Excerpt from Essay :
Laws Governing Business Entities
Laws Governing Business Organizations
Every business organization in a developed market is governed by laws, which are rather closely monitored to ensure the good fairing of the organization in the business market. Such laws provide for the standard form of the generally established legal entities in the worldwide economy. Such defined entities include, partnerships (general and limited), Limited Liability Company, cooperatives among others. This document outlines such laws and consequently defines their importance in performance of any organization or company established in a stable and developed business economy.
laws of most companies and organizations are articulated as below. This list provided below generalizes what is common and basic to most of the organizations or rather legal entities.
Every business organization should specify its official name to ensure proper identification with the concerned legal authorities. Each company has its own specific name, which is considered an intellectual property for every organization. Business names should be registered to allow customers identify persons behind the business name though business names cannot be implied in proprietary rights. A registered name of an organization can be used is used as a trademark and it assists in identification of any pending or registered trademark by applicants of business names.
ii) Purpose / Object
It is expected that a detailed and vivid description of the type and purpose of the organization highlighting anything or everything be actively practiced by the organized society. An organization may be non-profit, governmental just but to mention a few. The articulated statement of purpose authorizes every organization to practice its bound dealings with no compromise from legal authorities binding the company.
Organizations should qualify all its members by detailing the classes and membership types associated with the organization; this is accompanied with a list of voting rights for every class. The membership by -- law article has its merits in that it outlines any prerequisite for dues, this includes due dates, rights or/and restrictions of members considered to be delinquent, rights for reinstatement, it explains when a member is excluded from payrolls. This article also dispatches rules for resignation seconded to every memberships be it in subordinate or societies at superior levels.
Designation of office posts (e.g. Chair, Treasurer, and chair -- elect among others) are clearly defined in this article stating the power of each officer. The requirements and duties of each officer beyond those formulated by rule in one's parliamentary authority are articulated here. Appropriation of officers' qualifications; nomination details, election and office terms is done here also. Since this article describes the duties bound to every officer, a cut down on misuse of one's power in organization's operation is greatly looked at.
The dates set aside for all regular meetings should be stated for every one's knowledge in the company. All meetings of special purpose are authorized in the company's by -- law so as to avoid any illegal and unwanted meetings in the name of the organization. The quorum for meetings should be included in any organizations by -- laws.
vi) Executive Board / Board of Directors
Every organization should have a board of directors who take care of business between the regular scheduled meetings planed for the organization. The requirements and duties of each board member beyond those formulated by rule in one's parliamentary authority are articulated here. Appropriation of the board members' qualifications; nomination details, election and office terms should be outlined in this by -- law article. Since this article describes the duties bound to each member, a cut down on misuse of one's power in organization's operation is greatly looked at.
All anticipated regular standing committees should be defined in the sense that the description of each committee should involve its name, mode of selecting members as well as its function in the organization. Other committees are also expected to be in demand at some point and so this calls for any form of authorization for formulation of such committees be stated in the organization's by -- laws, this would otherwise require amendment of the by -- laws in order to form any committee.
viii) Parliamentary Authority
Every organization is formed or developed according to the standard requirements set by any local authority or the government. Though the by -- laws of every organization are determined and instituted by and within the organization itself, they should yield to every operational expectations set by the parliamentary authority. Any rules that are bound to the parliamentary rule should be clearly defined by the parliamentary authority so as to avoid any legal action against the organization.
Just like the parliamentary lay, the by -- laws of any organization or company are bound to be changed as time goes by. The actual requirements for any previous notice and restrictions in terms of majority size required for changing by -- laws should be specified in the organizations by -- laws. This gives the organization a way forward whenever a by -- law is to be amended.
Operation's Manager Job Description
Operations manager is basically responsible for overall administrative operations including service and staff administration. He ensures customer satisfaction is of quality as well as integrates strategic plans with company operations. Duties of Operations Manager include development and enhancement of policies and procedures so as to meet development goals of the department, customer complaints and enquiries handling, reviewing the organization's financial statements, facilitating resolution of issues together with other officials, formulating and implementing company's rules and regulations, monitoring performance of departmental offices within the organization and others not mentioned in the long list.
Though every employee is given a job description prior to employment, every organization has its own procedures followed while carrying out every day operations. Some of these procedures might not be articulated in an employee's job description but might be required to be adhered to. Many organizations call for teamwork in order to realize its performance levels. Since every employee is given a highlight of the organization's procedures and acceptance is given as a response in good will, all that will be required to be done of an employee should be done as long as no boundaries are leaped over.
Avoiding Litigation While Hiring/Terminating an Employee
a) Hiring an Employee
i) Formulation and Implementation of Sound Employment Policies
As an employer, the organization should review its employment policies to ascertain that they are current, understandable, and constant and that they can be legally implemented. Formulation of disciplinary policy equally enforced with all employees will reduce claims and other forms of misunderstanding. All the disciplinary policies and procedures conducted during an employee's employment period should be articulated properly for referencing purposes during any investigation.
ii) Employee Fair Treatment and Honesty
In every day's environment, however best an employer's intention may be, they at times must decide on matters far from employee's expectations e.g. lay-offs or employment benefits reduction. With prior respect to an organization's disciplinary policies and procedures will assist the employing organization to persuade sanctioned employees that they are not being left out. Before one as an employer seeks to terminate a job -- seeker based on background check or credit, the individual must be given a pre-adverse action disclosure. This constitutes a fair warning to the concerned individual. As an employer, one should conduct honest interviews giving candid evaluations and direct-to-the-point responses to any questions queried by the employee. This will considerably benefit the employer in the event of a lawsuit arising.
iii) Proper Documentation of All Employment Issues
The employing company should document all employee disciplinary actions and other decisions made during employment. One as an employer should that all articulated matters of employment would be scrutinized whenever a lawsuit arises, though the employer must be observant not to exaggerate the documented problems.
iv) Employers Should Avoid Making Promises That Might Not Be Meet
Employers should avoid binding themselves to conditions involving benefits, procedures and policies. Any promised that might be mentioned during the interview might constitute a legal promise (promissory estoppel) that would rather be binding to the employer. This might be rendered defensible by closely monitoring employee communications, language, employing restraint during job interviews just but to mention a few.
b) Terminating an Employee
Observing fairness considerations might help in reducing the legal risk linking with claims against an organization. Before one as an employer seeks to terminate an employee based on background check or credit, the employee must be given a pre-adverse action disclosure. This constitutes a fair warning to the concerned individual.
ii) Approval of Termination Decisions
Subjecting termination decisions to reviewing for approval by one person besides the supervisor ensures that objectivity is observed as the supervisor will be obliged to articulation of reasons behind a proposed termination. The overall review process should be a built -- in experience. This will also avoid biasness and disciplinary procedures will be followed.
iii) Caution Should Be Considered For Protected Employees
Laws of equal employment…