ACC 206:Corporate &

Business Law

Lecture 1: January, 2024

Lecturer: Shynggys Zhanbolatuly

Lecture Outline

 Introduction to the Course Syllabus

 Essential elements of legal systems: Business, political and

legal systems

 Practice

 Q&A

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Introduction to the Corporate & Business Law
Syllabus

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Corporate & Business Law

 To develop knowledge and skills in understanding general legal

framework within which international business takes place
 To learn a specific legal areas relating to business
 To recognize the needs in seeking further specialist legal
advice where necessary

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Subject-Specific Skills
 Identify the essential elements of different legal systems
 Recognize different types of international business forms
 Distinguish b/n alternative forms and constitutions of business organizations
 Recognize and compare types of capital and financing of companies
 Describe and explain how companies are managed, administered and regulated
 Recognize legal implications relating to insolvency law
 Demonstrate an understanding of corporate fraudulent and criminal behavior

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Course topics
A. Essential elements of legal systems

 Business, political and legal systems

 International trade, international legal regulation and conflict of laws

 Alternative dispute resolution mechanisms

B. International business transactions

 Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms

 Obligations of the seller and buyer, and provisions common to both

C Transportation and payment of international business transactions

 Transportation documents and means of payment

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Course topics
D. The formation and constitution of business
organizations
 Agency law & Partnerships
 Corporations and legal personality
 The formation and constitution of a company
E. Capital and the financing of companies
 Share capital
 Loan capital
 Capital maintenance and dividend law
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F. Management, administration and the regulation of
companies
 Company directors
 Other company officers
 Company meetings and resolutions
G. Insolvency law
 1. Insolvency and administration
H. Corporate fraudulent and criminal behavior
 1. Fraudulent and criminal behavior
 Course Specific Policy
Attendance :
 Classroom attendance is compulsory
 Students must attend at least 70% of all classes to be able to take the final exam
 Join sessions on time and do not leave until a class is over
 Arriving more than 15 minutes late counts as a missed class
 Do not leaving class during lectures. If a student leaves a class early, it will be counted as missed
Classroom behavior:
 Put your cameras on
 Active participation is compulsory
 No conversation during lectures
 Listen and take notes
 Ask for clarification if you are confused
 Effective learning can only take place when everyone participates actively, feel free to express your
thoughts/opinion/ideas

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 Course Specific Policy

Course Materials :

• Main Book: ACCA approved 2017 Paper F4

• Additional reading materials will be available on Moodle

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Course Assessment & Office Hours

Course Assessment
• Midterm 1 - 30%, Week 7, online
• Midterm 2- 30%, Week 12, offline
• Final exam- 40%, date TBD, offline
• Upon discretion by the instructor bonus assignments can be provided and will be announced in
advance.

Office Hours
• Please check with the instructor for appointment

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 Lecture 1:
Essential elements of legal systems: Business,
political and legal systems

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Lecture 1: Essential elements of legal systems: Business,
political and legal systems

LEARNING OBJECTIVES

• Understand the nature and sources of law

• Know the types of modern legal systems in the world
• Understand the various functions of a legal system

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Lecture 1: Political System

Political System

Democracy Dictatorship

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Lecture 1: Political System
Political System

Rule of Law Separation of power

Executive
Legislature
an elected body which makes the Judiciary
an elected body which decides which laws
decisions which put the law into action a non-elected body which
need to be passed to satisfy the nation’s
(head of state & head of government or rules on disputes about law
wishes (Parliament)
political party)

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Lecture 1: Economic Systems

Economic Systems

Planned Economy Market Economy Mixed Economy

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Lecture 1: Planned Economy
Allocation of resource is determined centrally
by government

Prices are fixed centrally for both resources Example is a Soviet

and production
Union, North Korea
Prices are not therefore the result of the
forces of supply and demand

Individuals own items of personal property but

Real wealth is held by government (central or

regional)

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Lecture 1: Market Economy
Allocation of resource is determined
by the forces of supply and demand

Price is dependent upon supply and Example is US, UK, EU

demand
countries, Singapore
Market forces dictate quantity of
production and consumption

Wealth is held individually rather

than collectively

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Lecture 1: Mixed Economy
As the name suggests, it
incorporates elements of both
market and planned economies

Resource allocation and production

are determined by a mixture of
factors
Example is Cuba, China

Government decisions (both direct

and indirect)

Private sector decisions

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Lecture 1: What is Law?
Law is the system of rules which a particular nation or community recognizes as regulating the actions of its
members and which it may enforce by the imposition of penalties.

In a nation, the law can serve to:

• keep the peace

• maintain the status quo
• preserve individual rights
• protect minorities
• promote social justice
• provide for orderly social change

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Lecture 1: Types of Law
Types of Law

National law International law Criminal law Civil law

Law that provides a set of

Law regulating the
Each nation has a set of legal rules defined by the Civil law exists to regulate
relations between
laws which regulate how state to regulate the disputes about the rights
sovereign states & the
entities within it relate to conduct of persons, public & obligations of persons
rights and duties they
each other and to the and private entities to when dealing with each
have with regard to each
state ensure public welfare and other
other
safety

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Lecture 1: International Law International law deals with:

Intern
Conflict of Law crimes &
State
Human intern
occurs when people from different legal formation &
rights judicial
recognition
settlement
jurisdictions trade with each other and their of disputes

respective legal rules conflict

The law of Acquisition
the sea s of
and of territory
space
Sources of International Law
• Conventions and treaties
• International custom Treatment
Treaties War of aliens
• The general principles of law recognized by
civilized nations

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Lecture 1: Examples
National Law: Constitution of any country and ordinary laws

International Law: any agreement between 2 or more countries

• European Union conventions & treaties

• International Trade Agreement

• Conventions b/n the CIS countries

• OPEC

• Bologna declaration

• UN Sustainable Development Goals

• World Health Organization agreements

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Lecture 1: Modern Legal Systems of the World
A legal system in a country embodies both the laws of that country and the mechanisms
the country has in place for regulating and enforcing those laws.

There are four main legal systems in the modern world:

1. Common law
2. Civil law
3. Religious law
4. Hybrid law systems

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Lecture 1: Common Law (incl Equity Law)
Common law is the body of legal rules,
common to the whole country, which is
Judges roles are:
embodied in judicial decisions. English common -setting and applying
judicial precedent and,
law is a system that gives written judicial The benefit of this -interpreting statutes,
system is consistency
decisions the force of law and resolution of - performing the
disputes without important function of
Equity applies to a
requiring the parties to judicial review**
specific set of legal
principles based on fair take legal matters to
Common law builds up dealings b/n the parties. court.
over time, added to by The idea is a concept of
the legislature and by fairness.
Originally developed in judicial precedent*.
England in 1066
Mostly applied to UK,
US & former British
Colonies

*Precedent is a judicial opinion that is considered legal authority for future cases involving the same or similar questions of law.
**Judicial Review is the role of determining whether created law conflicts with the Constitution.

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Lecture 1: Civil Law
Civil law are the body of laws that govern ordinary private
matters, separate from laws presiding over criminal, Judges roles are:
-apply the law (they do
military, or political matters. not make law by way of
-No concept of judicial precedent).
punishment - may perform judicial
-Objective is to review to ensure that
-To settle disputes compensate the wronged statutes etc. are in line
between individuals party with the constitution.
-Define and protect the -If liable, then
Sources are: private rights of citizens, compensation payable
-Constitution -Covers areas of law such
as contracts, torts,
-EU law
Originally developed in property, and family law.
-Statutes
Roman Empire &
developed in Europe. - Administrative
regulations
Know also as French Civil
Code (Code of Napoleon).
Mostly applied to France &
Germany & EU countries.
*Court of Cassation is the court of appeal in France

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Lecture 1: Religious Law (Sharia law)

Religious law systems arise from the sacred texts of religious

traditions and usually apply to all aspects of life, including social & Judges roles are:
-interpreting the law
business relations. Sharia law is based on Islam religion. (it cannot be changed)
A rule in Sharia law
that has a significant - may perform judicial
impact on commerce review by issuing
-Concept of equity & and trade is the rule statutes based on
fairness against usury, known Sharia law principles
in Sharia as riba.
Sources are:
-Quran
Sharia law is based on -Sunnah
Islam religion.
Mostly applied to
Muslim world. Iran &
Pakistan
*Riba is unlawful gain

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Lecture 1: Hybrid Systems

Hybrid legal systems are a combination of two or more legal systems within a nation.
Examples are:

• India (mix of Common law, Civil law & religious laws)

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Practice

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Practice Materials

• Common Law

https://www.youtube.com/watch?v=qaYnQFLhXk0

• Civil Law

https://www.youtube.com/watch?v=PbSTF-iOdRs

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Case Study: US

US Separation of Power

https://www.youtube.com/watch?v=HuFR5XBYLfU

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Practice 1:

US Political
System
Practice 1:

US Political
System
Case Study 2: UK

British Political System

• https://www.youtube.com/watch?v=HkfC8J95lGw

• Legislature: UK Parliament: House of Lords & House of Commons

• Executive: Prime minister & ministers (from political party)

• Judiciary: UK Supreme Court

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 QA

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Home assignment

• Read chapter 1: Business, political & legal systems

• Read the lecture materials on the Chapter 1

• Be prepared for the next lecture

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 Thank you

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