Articles of association Essay
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This sets out the rules for running the company. It contains the procedures for calling shareholder meetings, the number, rights, and obligations of directors, shareholder voting rights, and lastly details of how accounts will be kept and recorded. Once these two documents have been agreed they are sent to Companies House (a government body that watches over limited companies). If everything is in order, the registrar of companies’ issues a Certificate of incorporation, which allows the company to start trading out makes the company a separate legal entity from the owners.
Details of the director’s and the secretary’s intended address for the registered office as well as their personal details and information of other directorships they may have held within the last five years. This must be signed after all the other documents as it confirms that all the other registration requirements have been fulfilled. This declaration must be signed before a solicitor. Once all the forms are completed, they should be send to the company’s house where they are checked for such instances as confirming that the prospective officers of the company are not on the disqualified directors’ list.
How the ownership suits the business activity Peacocks group’s ownership suits their activity because they operate on a large scale by selling a wide range of goods like women’s wear, (lingerie, night wear, swimwear, e-vie fashions), men’s wear (jackets, shirts, ties, trousers), children’s wear (new borns, toddlers, babies), street wear, foot wear, home wear. With this, they employ more than 5000 personnel and trades from over 385 stores throughout the UK.
The profits Peacocks receives from selling their goods is used to pay wages, and buying other products to be sold from the suppliers. Because Peacocks is a large company, it gets a lot of profits from different branches and can manage to sell a large number of products and also employ enough staff to maintain the smooth running of the business.
Relationship between the size of the business and the type of ownership Peacocks is a large business covering 110,000 square feet and has about 385 stores in the UK. It operates on a large scale and this is one of the reasons why it is a public limited company. It employs 5000 personnel to work for it throughout the UK. The industrial sectors to which my businesses belong The primary sector is concerned with the production or obtaining of raw materials. This includes occupations like farming, forestry, fishing and mining, and oil and gas drilling. For many products, such as fish fingers, this will be the first stage of production. The fish will be then sold on for processing at the secondary stage.
The secondary sector deals with manufacturing, processing, construction, and assembly. This relates to manufacturers of consumer and industrial goods. A paper mill, a carpet factory, and a house builder are all found in this sector. Secondary industry processes the goods that come from the primary industry and turns them into something that people want.
My two businesses, which are Peacocks, and Top Girl hairdressers both belong to the same industrial sector. They both belong to the tertiary sector, which is known as the service sector. The tertiary sector includes all the providers of services to businesses and to individuals, and can be divided into four sections. These are business services, financial and business services, transport and communication, retailing, distribution, hotels and catering.
They belong to this sector because they provide services. Peacocks mainly provides retailing while top girl hairdressers provides hair styling. Top girl hairdressers also provides retailing but as a side activity. It sells a few hair products to its customers just in case they come to get their hair done without any products. They also provide information about maintaining hair. Peacocks sells women’s wear, men’s wear, home wear and children’s wear.Consultancy work is generally popular- tax consultants, management consultants, and computer consultants. Whenever there is constant, rapid change that affects business you will find that consultants are often used to advise how best to adjust to these.
Recruitment agencies and selection consultants depend on the job market. When unemployment is high they may struggle, when employment is good and people are looking to change jobs regularly they benefit from increased business. Don’t forget that recruitment agencies often specialise in temporary employment opportunities. Security firms are becoming more and more popular. Certainly many retail organisations do.
Security services are normally sub-contracted because this is more cost-effective than employing and managing specialised security staff. Industrial cleaners are also sub-contracted. Your college probably buys in its cleaning services rather than employing cleaners. This has been a growth area for entrepreneurs in the past few years. Secretarial services are generally less popular than they were several years ago. The use of computers and modern software packages means that many people can produce their own documents quickly and easily.