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February 201632.00

Paper F4

Corporate and Business Law (English)

This ACCA Study Text for Paper F4 Corporate and Business Law (English) has been comprehensively reviewed by the ACCA examining team. This review guarantees appropriate depth and breadth of content and comprehensive syllabus coverage.

In addition to ACCA examining team reviewed material you get:

A user-friendly format for easy navigation Exam focus points describing what the examining team will want you to do Regular Fast Forward summaries emphasising the key points in each chapter Questions and quick quizzes to test your understanding A practice question bank containing exam- standard questions with answers A full index All you need in one book

ACCA approved content providerBPP Learning Media is dedicated to supporting aspiring business professionals with top-quality learning material as they study for demanding professional exams, often whilst working full time. BPP Learning Medias commitment to student success is shown by our record of quality, innovation and market leadership in paper-based and e-learning materials. BPP Learning Medias study materials are written by professionally qualified specialists who know from personal experience the importance of top-quality materials for exam success.

Corporate and B

usiness Law (English) S

tudy TextACCA

F4For exam

s from 1 Septem

ber 2016

to 31 August 20

17

Paper F4Corporate and Business Law (English)

For exams from 1 September 2016 to 31 August 2017

ACCA ApprovedStudy Text

ACF4(ENG)ST16 (RICOH).indd 1-3 04/02/2016 12:58

File Attachment9781472746627.jpg

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S T U D Y

T E X T

PAPER F4 Corporate and Business Law (English)

BPP Learning Media is an ACCA Approved Content Provider. This means we work closely with ACCA to ensure this Study Text contains the information you need to pass your exam.

In this Study Text, which has been reviewed by the ACCA examination team, we:

Highlight the most important elements in the syllabus and the key skills you need

Signpost how each chapter links to the syllabus and the study guide

Provide lots of exam focus points demonstrating what is expected of you in the exam

Emphasise key points in regular fast forward summaries

Test your knowledge in quick quizzes

Examine your understanding in our practice question bank

Reference all the important topics in our full index

BPP's Practice & Revision Kit also supports this paper.

FOR EXAMS FROM 1 SEPTEMBER 2016TO 31 AUGUST 2017

ii

First edition 2007 Ninth edition February 2016

ISBN 9781 4727 4420 3 (Previous ISBN 9781 4727 2673 5)

e-ISBN 9781 4727 4662 7

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A catalogue record for this book is available from the British Library

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BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA

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Printed in the United Kingdom by

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We are grateful to the Association of Chartered Certified Accountants for permission to reproduce past examination questions. The suggested solutions in the practice answer bank have been prepared by BPP Learning Media Ltd, unless otherwise stated. BPP Learning Media Ltd 2016

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Contents iii

Contents Page

Introduction Helping you to pass v Studying F4 vii The exam paper ix Syllabus and Study Guide x

Part A Essential elements of the legal system 1 Law and the legal system 3 2 Sources of law 17

Part B The law of obligations 3 Formation of contract I 37 4 Formation of contract II 55 5 Content of contracts 73 6 Breach of contract and remedies 89 7 The law of torts and professional negligence 105

Part C Employment law 8 Contract of employment 125 9 Dismissal and redundancy 143

Part D The formation and constitution of business organisations 10 Agency law 161 11 Partnerships 171 12 Corporations and legal personality 181 13 Company formation 199 14 Constitution of a company 215

Part E Capital and the financing of companies 15 Share capital 233 16 Loan capital 249 17 Capital maintenance and dividend law 263

Part F Management, administration and the regulation of companies 18 Company directors 275 19 Other company officers 301 20 Company meetings and resolutions 311

Part G Insolvency law 21 Insolvency and administration 329

Part H Corporate fraudulent and criminal behaviour 22 Fraudulent and criminal behaviour 349

Practice question bank 367 Practice answer bank 377 List of cases and index 387 Review form

iv

Introduction v

Helping you to pass

BPP Learning Media ACCA Approved Content Provider

As ACCA's Approved Content Provider, BPP Learning Media gives you the opportunity to use study materials reviewed by the ACCA examination team. By incorporating the examination team's comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media Study Text provides excellent, ACCA-approved support for your studies.

The PER alert

Before you can qualify as an ACCA member, you not only have to pass all your exams but also fulfil a three year practical experience requirement (PER). To help you to recognise areas of the syllabus that you might be able to apply in the workplace to achieve different performance objectives, we have introduced the 'PER alert' feature. You will find this feature throughout the Study Text to remind you that what you are learning to pass your ACCA exams is equally useful to the fu