THE UNIVERSITY OF HONG KONG

HKU SPACE Community College

Associate Degree Programmes 2022-23

Course Document

Course Title: Business Associations and Commercial Practice

Course Code: C C L W 4 0 0 4

QF Level: 4

Contact Hours: 39 Hours

Aims and Objective

This course aims at introducing the basic concepts in Law of Business Practice. It will cover introduction to business
practice, partnerships and limited companies, limited companies, creating a company, limited companies-running,
corporate failure and other relevant topics.

Intended Learning Outcomes of the Course

On the completion of the course, students should be able to

ILO1. distinguish the different legal vehicles in running business;

ILO2. compare and contrast advantages and disadvantages of partnership and limited company;
ILO3. explain the different characteristics of various types of company;
ILO4. describe procedures and legal documents required by law in creating a company;
ILO5. identify different legal issues in the running and winding up of a company.
Syllabus

1. Introduction to Business Practice

l Introduction
l Sole trader

2. Partnerships and Limited Companies

l Nature of partnership
l Nature of partners’ relationships with each other and outsiders
l Nature of limited company
l Partnerships and companies compared
l Dissolution of a partnership

3. Limited Companies
l Types of company
l Separate legal personality
l Directors
l Public companies
l Stock Exchange Listing Rules

4. Creating a Company
l Incorporation
l Documents required for registration - private limited company
l Memorandum of association
l Articles of association
 5. Limited Companies-Running
l Borrowing working capital
l Nature of shares
l Right to dividends
l Management of the company
l Directors
l General meetings - meeting of members
l Accounts

6. Corporate failure
l Alternative remedy to winding up in case of unfair prejudice
l Winding up a company
l The effect of presenting a winding up petition to court
l The effect of a winding up order
l Voluntary winding up
Assessment
Description Weighting
Mid-term in-class test 30%
Assignment 30%
Class Participation 10%
End-term in-class test 30%
Pre-requisite(s)

Nil

Required and Recommended Reading

Recommended Reading:
1. Ng, Thomas (2014). Business Association – Course Manual. Hong Kong: HKU SPACE College of Humanities
and Law.
2. Stoff, V. (2015). Hong Kong Company Law. (12th ed.). Hong Kong: Pearson.

01.07.2022