The Creation of Britain’s Welfare State

Before World War II, Britains welfare program—such as payments to support the sick—was overwhelmingly provided by private, volunteer institutions. But a change in outlook during the war allowed Britain to construct a Welfare State after the war: the government provided a comprehensive welfare system to support everyone in their time of need. It remains largely in place today. Welfare Before the Twentieth Century By the 20th century, Britain had put into effect its modern Welfare State. However, the history of social welfare in Britain did not begin in this era: Social groups and the various governments had spent centuries trying different ways to deal with the sick, the poor, the unemployed, and other people struggling with poverty. By the 15th century, churches and parishes had taken the leading role in caring for the disadvantaged, and Elizabethan poor laws clarified and reinforced the role of the parish. As the industrial revolution transformed Britain—populations increased, migrating to expanding urban areas to take up new jobs in ever increasing numbers—so the system to support people also evolved. That process sometimes involved governmental clarifying efforts, setting contribution levels and providing care, but frequently came from the work of charities and independently-run bodies. Reformers attempted to explain the reality of the situation, but simple and mistaken judgments of the disadvantaged continued to be widespread. These judgments blamed poverty on individuals idleness or poor behavior rather than socioeconomic factors, and there was no over-riding belief that the state should run its own system of universal welfare. People who wanted to help, or needed help themselves, had to turn to the volunteer sector. These efforts created a vast voluntary network, with mutual societies and friendly societies providing insurance and support. This has been called a mixed welfare economy, since it was a mixture of state and private initiatives. Some parts of this system included the workhouses, places where people would find work and shelter, but at a level so basic they would be encouraged to seek outside work to better themselves. On the other end of the modern compassion scale, there were bodies set up by professions such as mining, into which the members paid insurance to protect them from accident or illness. 20th Century Welfare Before Beveridge The origins of the modern Welfare State in Britain are often dated to 1906, when British politician H. H. Asquith (1852–1928) and the Liberal party gained a landslide victory and entered government. They would go on to introduce welfare reforms, but they did not campaign on a platform of doing so: in fact, they avoided the issue. But soon their politicians were making changes to Britain because there was pressure building to act. Britain was a rich, world-leading nation, but if you looked you could easily find people who were not just poor, but actually living below the poverty line. The pressure to act and unify Britain into one mass of secure people and counter the feared division of Britain into two opposed halves (some people felt this had already happened), was summed up by Will Crooks (1852–1921), a Labour MP who said in 1908 Here in a country rich beyond description, there are people poor beyond description. The early 20th century reforms included a means-tested, non-contributory, pension for people over seventy (the Old Age Pensions Act), as well as the National Insurance Act of 1911 which provided health insurance. Under this system, the friendly societies and other bodies continued to run the healthcare institutions, but the government organized the payments in and out. Insurance was the key idea behind this, as there was reluctance among the Liberals over raising income taxes to pay for the system. Its worth noting that German Chancellor Otto von Bismarck (1815–1898) took a similar insurance over direct tax route in Germany. The Liberals faced opposition, but Liberal Prime Minister David Lloyd George (1863–1945) managed to persuade the nation. Other reforms followed in the interwar period, such as the Widows, Orphans, and Old Age Contributory Pensions Act of 1925. But these were making changes to the old system, tacking on new parts. As unemployment and then depression strained the welfare apparatus, people began to look for other, far larger scale measures, which would ditch the idea of the deserving and undeserving poor completely. The Beveridge Report In 1941, with World War II raging and no victory in sight, Prime Minister Winston Churchill (1874–1965) still felt able to order a commission to investigate how to rebuild the nation after the war. His plans included a committee which would span multiple government departments, investigate the nations welfare systems, and recommend improvements. Economist, Liberal politician and employment expert William Beveridge (1879–1963) was made the chairman of this commission. Beveridge is credited with drafting the document, and on Dec. 1, 1942 his landmark Beveridge Report (or Social Insurance and Allied Services as it was officially known) was published. In terms of Britains social fabric, this is arguably the most important document of the 20th century. Published just after the first major Allied victories, and tapping into this hope, Beveridge made a raft of recommendations for transforming British society and ending want. He wanted cradle to grave security (while he did not invent this term, it was perfect), and although the text was mostly a synthesis of existing ideas, the 300 page document was accepted so widely by an interested British public as to make it an intrinsic part of what the British were fighting for: win the war, reform the nation. Beveridges Welfare State was the first officially proposed, fully integrated system of welfare (although the name was by then a decade old). This reform was to be targeted. Beveridge identified five giants on the road to reconstruction that would have to be beaten: poverty, disease, ignorance, squalor, and idleness. He argued these could be solved with a state-run insurance system, and in contrast to the schemes of previous centuries, a minimum level of life would be established that was not extreme or punishing the sick for not being able to work. The solution was a welfare state with social security, a national health service, free education for all children, council-built and run housing, and full employment. The key idea was that everyone who worked would pay a sum to the government for as long as they worked, and in return would have access to government aid for the unemployed, ill, retired or widowed, and extra payments to aid those pushed to the limit by children. The use of universal insurance removed the means test from the welfare system, a disliked—some may prefer hated—pre-war way of determining who should receive relief. In fact, Beveridge didnt expect government expenditure to rise, because of the insurance payments coming in, and he expected people to still save money and do the best for themselves, very much in the thinking of the British liberal tradition. The individual remained, but the state provided the returns on individuals insurance. Beveridge envisaged this in a capitalist system: this was not communism. The Modern Welfare State In the dying days of World War II, Britain voted for a new government, and the campaigning of the Labour government brought them into power—Beveridge was defeated but elevated to the House of Lords. All the main parties were in favor of the reforms, and, as Labour had campaigned for them and promoted them as a just reward for the war effort, a series of acts and laws were passed to institute them. These included the National Insurance Act in 1945, creating compulsory contributions from employees and relief for unemployment, death, sickness, and retirement; the Family Allowances Act providing payments for large families; the Industrial Injuries Act of 1946 providing a boost for people harmed at work; the 1948 National Assistance Act to help all in need; and the Minister for Health Aneurin Bevans (1897–1960) 1948 National Health Act, which created a universal, free for all social healthcare system. The 1944 Education act covered the teaching of children, more acts provided Council Housing, and reconstruction began to eat into unemployment. The vast network of volunteer welfare services merged into the new government system. As the acts of 1948 are seen as key, this year is often called the start of Britains modern Welfare State. Evolution The Welfare State was not forced; in fact, it was widely welcomed by a nation which had largely demanded it after the war. Once the Welfare State was created it continued to evolve over time, partly due to the changing economic circumstances in Britain, but partly due to the political ideology of the parties which moved in and out of power. The general consensus of the forties, fifties, and sixties began to change in the late seventies, when Margaret Thatcher (1925–2013) and the Conservatives began a series of reforms regarding the size of the government. They wanted fewer taxes, less spending, and so a change in welfare, but equally were faced with a welfare system that was starting to become unsustainable and top heavy. There were thus cuts and changes and private initiatives began to grow in importance, starting a debate over the role of the state in welfare which continued through to the election of the Tories under David Cameron in 2010, when a Big Society with a return to a mixed welfare economy was touted. Sources and Further Reading Guillemard, Ane Marie. Old Age and the Welfare State. London: Sage, 1983.  Jones, Margaret, and Rodney Lowe. From Beveridge to Blair: The First Fifty Years of Britains Welfare State 1948-98. Manchester UK: Manchester University Press, 2002.

Is Constructivism The Best Philosophy Of Education

Is Constructivism the Best Philosophy of Education? The dilemma with Objectivism and Constructivism is that they are being regarded as bifurcating philosophies when they should be deemed as complementing philosophies. Why not employ both to create the best educational system possible? We need the Objectivism approach in order to see the global perspective of educating children and we need the Constructivism approach in order to identify the details that are failing some students and bring a sense of humanity to the school system and eliminate the factory sense, which was embedded in the educational systems by Taylor s ideas on scientific management (Vrasidas, 2000, p.339-362). Therefore, This argument is based on the convergence of Objectivism and Constructivism in order to construct a fair and balance educational system. Jamin Carson (2005) as stated in Noll (2014) Objectivism is a better option in education because it is more reasonable from a theoretical and practical perspective than constructivism (p.59). According to Vrasidas (2000) Objectivism is the traditional approach to learn and teach based on behaviorist and cognitive theories. 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Investigative Report on the Operation Functions of Mouchel Group PLC Free Essays

string(112) " a more service based solution, where more traditional construction techniques would have been previously used\." 1.0 Introduction and Methodology The key aim for this report is to develop an understanding of the context within which Mouchel operates; to realise an examination of the operational functions used within the company and ultimately how this is affected by the current management restructuring. Focusing on the construction sector within the UK, an overview of strategy and the influence of the current changes will be objectively compared to theoretical models to analyse the risks the company and perceptibly the engineers may face in the future. We will write a custom essay sample on Investigative Report on the Operation Functions of Mouchel Group PLC or any similar topic only for you Order Now The selection of data has come primarily from the company itself through annual reports, although other sources such as journals and articles have been utilised to offer theoretical models and analysis to further the investigation. 2.0 Company Overview As an international consultancy based organisation, Mouchel operates substantially in the construction and development sector, and consequently has had to meet the concept of sustainability; both with relation to the external projects it completes and the internal company environment. This has resulted in many operational changes and mirroring the growing trend towards a ‘service economy’(15) in the UK, has established in contribution to its core product(14), a greater service output. The majority of the core projects the company undertakes are considered high variety, low volume; however it can be argued that through the segregation by divisions within the company, projects have a lesser variety component. 2.1 Company History and Events Leading to the Current Changes 2.1.1 Early History and the Influence of the Private Sector. Founded in 1897, Mouchel has been predominately concerned with delivering engineering projects. However the increasing current involvement of the private sector in UK projects, shown by the introduction of the Private Finance Initiative (PFI) in the 1990’s, has required Mouchel to develop an advisory role(1), in order to compete in the many government sectors which are affected by the use of this procurement method. The initial work with local government is the first point where delivering a service rather than simply an engineering product is most clearly seen. The market within which construction projects are moving from the public sector to the apparently more stable private sector(10) is now at risk of saturation(6). Therefore Mouchel has to militate against the risk of other competition entering the market. The difficulty stems from the ability to maintain company growth rather than simply surviving(6) in the current climate and this is achieved through focusing on core services. A substantial market share(2) in highways and water has enabled the company to maintain a strong position that will ensure progression. 2.1.2 Recent Mergers The merger with Parkman Group plc in 2003(2) combined the expertise from similar consultancies to maximise presence within the government sector. The merger resulted in many acquisitions which diversified the company’s range of services and promoted the necessary organisational growth; thus increasing staffing levels considerably. More recently the acquisition of HBS in 2007(5) further reinforced the outsourcing division and combined with rebranding, demonstrated that Mouchel were keen to reinstate a transition into the business sector of construction. 2.2 Current Operational Landscape As Mouchel has faced the recession and there has been an apparent suspension of investment in construction projects, service divisions such as outsourcing, have overtaken as a key priority; altering the strategy of the company overall and inherently transcending the operations management. The integration of manufacturing and providing services within the company brings further implications; the implied concept of service output being superior to the production of projects(15), presents difficulties when considering processes in the company. On a global scale the legal and cultural differences also need to be ascertained in order for coherent communication of information; this is most widely seen in the current management restructuring taking place. 3.0 Management Restructuring 3.1 Change in Company Structure 3.1.1 Cost Savings and Efficiency As a result of the change in market and type of projects being undertaken, Mouchel is currently carrying out a large scale restructuring exercise(3) with the aim of reducing base costs and maximising the structural organisation of the company to ensure efficiency. This has been achieved by substantially reducing the senior management tier by 20%(3). This combined with the significant investment in new systems, emphasising the importance of technology in engineering firms, has demonstrated the dedication to providing the same standard of services but using less resources. Here the role of innovation in the transformation stage(14) is evoked and is vital to the validity of this linear model to produce the same level of output. It is estimated that the restructuring will provide a yearly cost saving of ?25 million and this may be indicative of the ‘gap based’ approach(6) to process management, where what is required by the company has been measured against current achievement and consequently modification of the infrastructure, in terms of staff, has been used in order to achieve it. 3.1.2 The Role of Engineers within the New Structure Here efficiency has driven the restructuring through the analysis of job roles and the contribution they add to the company. This evokes the idea of expertise and value added management(6) as a break to more traditional management techniques, where structural hierarchy(15) was emphasised. The functions previously completed by the senior management tier now have to be transferred to engineers, distorting the priorities of staff. With some management roles being made redundant, other grades of management have been ‘rationalised’(9) so that they possess greater responsibility. This questions the range of skills required by the management team and if the way in which future projects will be managed will maintain the same level of organisation or if areas less obviously associated with service will be neglected. 3.1.3 Replacing Staff through Innovation Innovation is of high priority in order to achieve efficiency targets set by the company(14) and clients and is key in increasing productivity of workers(15).The recent hard shoulder project on the M6(2) shows the use of a more service based solution, where more traditional construction techniques would have been previously used. You read "Investigative Report on the Operation Functions of Mouchel Group PLC" in category "Essay examples" This conveys the difficulty to consider empirically the operations of this division as a process where innovation is utilised; the concept at its base level is to move away from standard techniques(14), undermining the traditional nature of processes. 3.2 Impact on Projects 3.2.1 Relationships between the Company and Client The widening of skill sets required by the restructuring emphasises the development of interpersonal skills(9) as a key priority as the engineers will have a greater customer facing role. These implications will require further development of human resources and a change to the recruitment process within the company. However considering Garvin’s perception(9) of the types of processes in a company, it appears the more administrative processes have been most reduced, which while they are not customer facing, do have a vital function and suggests that possible control throughout the company may suffer as a result. This also widens the gap between product and service as effectively the ‘boundary spanning function’(14) has been removed. Network theory(13) can then also be applied to the restructuring to consider the dialectic relationships within the company. By altering the people and processes involved in the management of projects many more risks beyond that of efficiency are applied. The restructuring tends to horizontal organisation(14) where expertise is more highly valued than the chain of command. 3.2.2 Communication and Project Control The radical redesign of the management structure within the company defies many of the theoretical perceptions of process control(8). Rather than improving the existing process, they have implemented a new one in which there is no existing benchmark(6), and therefore no empirical measure of its success in the short term. This is further complicated with the contribution of innovation and the attempt to consider the success of restructuring through cost effectiveness(3). This contradicts the move to a sustainable company, as the idea of risk is evident and while restructuring may prove successful there is an increased chance of failure that in an incremental quality movement approachcould have been managed more easily. 4.0 Sustainability 4.1 Company Strategy Mouchel claims three core areas for consideration of sustainability(3) ,making many commitments within these areas, most falling into the PESTLE model(Fig 1) of thinking, and substantially addressed by the social, environmental and economic parameters with an appreciation of the political and legal limits. The pressure to evolve to a sustainable company is the most challenging and the effect the management restructuring will have on this goal requires consideration of Corporate Social Responsibility (CSR) policy(3). 4.1.1 Divisions and Technological Strategy The more traditional technical engineering divisions are contrasted with the development of strategy services and have shown a move towards commercial commitment. These new macro transformation operations have shaped the company but also developed many new issues. The definition of output as a product or service(15), is clearly seen in the regulated industry division where the decline of operations in the Middle East, has resulted in the company providing energy assessments to commercial utility suppliers(1) in the UK in order to maintain a profit. A previously technical role has been transformed to a more service based product and emphasises clearly the resource risks. The resource now being transformed is not obtusely materials but information(14), especially with the increased use of technology requires a different strategic process. The use of technology(6) is an important structural decision that compliments restructuring, although there is little consideration of the effect thi s will have on the key engineering roles. 4.1.2 Retention of Staff Retention of staff is of paramount importance to the company’s sustainability demonstrated through the rigorous personal development process and its commitment to the ‘never stop improving’(3) scheme. However the recent restructuring that has occurred has instilled perceived disharmony(5) with the more experienced employees and has been seen as a main priority to address within the coming year. However, what is seen as hollowing out(2) of management functions is intended to provide greater opportunity for mobility and communication. This promotes the ability to progress a career within the company, hopefully developing in the long term a more committed work force. 4.2 Project Management 4.2.1 Client Relationships Across all divisions there has been a need to extend boundaries in order to maintain productivity within the company; often to a more commercial client base as previously shown. The company has always relied on long term relationships(4).This has been challenged by the restructuring to focus on retaining relationships as well as acquiring new clients as the infrastructure of the company changes. The high bid win rate previously established by Mouchel(2), promoted a successful reputation for superiority, in part synonymous with its structure and organisation, which provided strength when competing for new tenders. This same reputation informs the current strategy to extend its services into other sectors, where the same principles can be applied but modified to different client bases; although the impact of restructuring on this reputation has not yet been realised. 4.2.2 Project Hierarchy and Line Management Considering the management of clients in the perceived use of long term relationships, the larger clients are assigned account managers(2) to ensure satisfaction with the company. This adds another layer to Naylor’s perception of the typical managerial structure(15) and develops a rather more web like arrangement, where the project and account management overlaps. In this case it is difficult to determine accountability and responsibility, and may lead to difficulty with communication within the different facets of the project delivery. Project success is largely measured through the use of financial KPI’s(2) and the use of remuneration of less easily quantifiable targets conveys a distortion of true value. The role of engineers in this web may also get lost and the communication between the different divisions of the company is vital in ensuring information is not lost or misinterpreted. 4.3 Long Term Projection 4.3.1 Defining Principles and Mission Statement Considering how the strategy of the company is portrayed through the defining principles expressed by the mission statement, the culture and intentions of the company can be determined, ‘At Mouchel we improve day-to-day life for millions of people. We help to transform essential public services and to sustain vital infrastructure†¦Ã¢â‚¬â„¢(2) This is the primary function stated by the company and conveys a sense of top down strategy(14) which, as an apathetic mission statement, is aspirational without committing entirely to the processes that will be used to achieve this. The construction sector is strongly evoked and the influence of sustainable design can be clearly seen, however the main issue raised by this statement is the association with public services. The private sector’s influence on government projects will have a continual affect on the ability to meet this goal, and defines the need for change within the company. The principles also address the working ethos of the company; ‘At Mouchel, above all else, we show a passion for success, a spirit of adventure, and have integrity at heart.’(2) Again it can be argued that the statement is vague, however it clearly depicts the operations management style of the company. However when compared to Kast and Rosenzweig’s(11) concept of the external business environment, it can be interpreted that the lack of definition of goals(Fig 2) demonstrates that the transitory nature of the company conveys uncertainty as to its future output. This may also suggest that there are overlooked uncertainties within the company’s key processes. 4.3.2 Rebranding of the Company The recent rebranding as Mouchel is consistent with restructuring, although conveys the reputation of the company as one of the empirical risks associated with change(8). As part of the support strategy the stakeholder map and categorisation matrix(Fig 3) must be established early(15) to ensure they can be well managed; especially those considered adverse to the proposed changes while maintaining high influence within the company. This is achieved by focusing on communication between all divisions and levels, especially externally with stakeholders and clients. 4.4 Supply Chain Management 4.4.1 Core facilities and Wider Network Mouchel aims to maintain core facilities within the company(2), looking to forward integrate projects(14), so that they evolve through restructuring to a customer facing organisation. However to reduce the possibility of a ‘closed system mentality’(12) Mouchel recognises the benefits for both themselves and the clients through the use of supply chains to maximise projects. Although suppliers remain outside the ‘boundary of control’(10) the ability to select contractors based on competitive factors(2), ensures relative reliability without commitment for Mouchel, and shows a flexible network(7). However through this demand based process(14) the loyalty of the supplier is not obtained and therefore limits the dependability of the relationship between the company and supplier. 4.4.2 Network Monitoring and Quality Control There are more than 1000 first tier suppliers and contractors(2) in the external supply network as well as those inherited through joint venture projects, which is managed through the use of an approved vendor database(2). This establishes the most qualified supplier for each subcontract, and it can therefore be assumed that quality of the service they provide is high; the competition between contractors has been further driven by the sustainability focus of the company with the introduction of sustainability criteria to the assessment(2). 4.4.3 Issues Associated with the Network The holism(10) of this kind of network is substantially determined by the way in which the parts of the chain interact. Considering the long term projection of the supply chain as a function of success, it substantiates an approach opposed to the paradigm of silo thinking(10), where all parts of the network are linked together. However this is contradicted by the way in which the divisions of the company are relatively isolated, which stereotypically occurs substantially in the construction sector. By redesigning the structure of the company it creates greater capacity of the in house processes to consider the scope and the wider achievements of the project, through improved communication. 5.0 Conclusions 5.1 Impact of Current Restructuring As the salient cause of change within the company, the restructuring has implemented many new processes and technologies that have been put into place in order to develop a company which will survive the recession and growing pressures of CSR, however there is little evidence of consideration of all the long term effects that may arise as a result. While change may be unavoidable, the structure which personifies the company has been radically altered, and may cause issues associated with reputation and consistency, as well as internal aspects associated with its own workforce. While the company appears to be financially viable for the future, the softer side of the analysis has been neglected and may cause a dichotomy between strategy and implementation. Furthermore, it is clear that long term relationships are the epitome of the company, which develops the importance of account management and adds another conflicting dimension to the company’s operations. In order to meet the expectations of the client, communication and feedback is essential and with the increasing service output of the company it is important to predict the impact that the restructuring will have on these relationships. It is also vital to consider the apparent mobility of the company structure and if it will manifest a culture of innovation, which is clearly required in order for the company to maintain growth, or a sense of instability that will damage the bond of these long term relationships. Looking at the future of the company, Hayes and Wheelwrights stages of operations appears to suggest Mouchel is in the transition stages of 3 and 4(14). The increasing impact operations management has within the company is driving the success of projects, however it remains to be seen if the company is redefining the industries expectations(14) or just that of its customers. The transition between service and product delivery is not clearly defined, and it is questionable as to the consideration of the contributions of operations management over this change. 5.2 Final Conclusions and Recommendations Therefore Mouchel can be seen as an aspirational, innovative company, challenging the perceptions of the traditional construction sector consultancy; opting for diversification and control through in house processes to advance the progression of the company. However it remains to be seen if the instigating factors for change and the recent required optimisation of operational strategy, have evoked the necessary consideration of all aspects of the company that will be transformed. A holistic and rather human analysis would suggest that the difficult nature of relationships cannot always be predicted though theoretical models or forecasting in the long term. For Mouchel the different stratum they inhabit centre on relationships, both externally with clients and internal with staff and suppliers, and is therefore uncertain. It will be interesting to see how this will develop and to assess the future role of engineers within this new arrangement, due to the new dexterity that will be req uired of them. Expanding this to the construction sector as a whole, it is possible that the restructuring of consultancies in this way, may alter the core perspectives of the commercial industry and conceivably the fundamentals of engineering. References (1) Interim management statement, Mouchel group plc (2010) (2) Annual report and accounts, Mouchel group plc (2010) (3) Sustainability report, Mouchel group plc (2010) (4) Reports and accounts ‘building great relationships’ Mouchel Parkman plc (2007) (5) ‘Mprint’ in house publication (2007) (6) Schmenner.R.W Swink.M.L, ‘on theory in operations management’ Indiana University (1998) (7) Cravens.D.W Piercy.N.F Shipp.S.H, ‘New organisational forms for competing in highly dynamic environments: the network paradigm’ British Journal of Management (1996) (8) Bateman.T.S Zeithaml.C.P, ‘Management: function and strategy’ Irwin (1990) (9) Garvin.D.A ‘The processes of organization and management’ Sloan management review (1998) (10) Prokesch.S, ‘The sustainable supply chain’ Harvard business review (2010) (11) Kast.F.E Rosenzweig.J.E ‘general systems theory: applications for organisation and management’ academy of management journal (1972) (12) Thompson.J.D, ‘organizations in action’ McGraw hill, New York (1967) (13) Mitleton-Kelly.E, ‘complex systems and evolutionary perspectives on organisations’ emerald group (2003) (14) Slack.N Chambers.S Johnston.R, ‘operations management’ Pearson education 4thed (2004) (15) Naylor.J, ‘Introduction to operations management’ Pearson education 2nded (2002) How to cite Investigative Report on the Operation Functions of Mouchel Group PLC, Essay examples

Law of Business Organisation Economic and Labour Relations

Question: Discuss about the Law of Business Organisation for Economic and Labour Relations. Answer: Type of Company The company to which the said constitution applies is a private limited company which is named XYZ Private Limited. Internal Management of the Company The internal management of the XYZ Private Limited is to be regulated by the rules of the Corporation Act 2001 that are applicable to the company in the form of replaceable rules and the Constitution of the Company (Kershaw, 2012). Thus, both the replaceable rules and the Constitution of the Company will together govern the internal management of the company. The said rule is allowed under the section 135 of the Corporation Act 2001. The said Constitution makes it clear that it has the inherent power to make changes and alter the replaceable rules following a fixed stipulated procedure and non-compliance with the replaceable rules is not to be deemed to be in violation of the Corporation Act 2001. Purpose The primary purpose of establishing the said company is to allow the manufacture and retail of consumer products in the Australian market at reasonable prices and cater to all classes in the society making available the best quality consumer products at affordable rates (Morrison, Wilson Bell, 2012). Directors The company may appoint a director who is responsible for the internal affairs and management of the company in a general meeting by a simple resolution. However, the said director who is appointed by the company has the authority to appoint other directors (Latimer, 2012). However if an director is appointed by other directors on emergence basis, the directorship ceases to exist If the same is not confirmed by a resolution in a company general meeting within 2 months of appointment. Remuneration of Directors The company decides the remuneration of the directors in a meeting by a resolution. The said remuneration includes many benefits and incentives which the director of a company is entitled to as a part of his salary (Winterton, Glass Thomson, 2012). Additionally, the company is also entitled to pat for the directors travelling that may be incurred while attending board meetings and conferences in other cities on behalf of the company or for every travelling which is in connection with the companys work operations. Directors Removal A director of the company can resign from his post by giving a written notice of the same in the companys registered office. However, if the members of the company are unhappy with the management skills of the director or believe that the director has failed in his duties, they may remove a director by a resolution passed in the general meeting (Redmond, 2012). In the same meeting, appointment for a new director can also be made by a resolution. The appointment of a director can also be made by the other directors present in the company who are duly appointed following the proper procedure to appoint a director. The directors of a company can appoint a managing director from amongst themselves by a simple vote at the board meeting and the managing director will be the primary individual responsible for the working and internal affair of the company (Hill, 2012). Power of the Managing Director The directors of the company who elect the managing director confer a number of exclusive rights on the managing director like signing on behalf of the company, being the companys face and attending all conference and international meetings on behalf of company. However, in case the managing director acts beyond his authority, the directors have the right to revoke the powers which a managing director possesses (Healey, 2012). Appointment of other employees The appointment of other employees like the managers, secretary, accountant and lawyers depend on the terms and conditions which the directors of the company decide. However, the directors are restricted from wrongfully appointing a relative or a friend for a position for which the relative or the friend is not qualified to hold (Wells, 2012). Execution of Company Documents If at any time, the said company only has one or sole director and no secretary, then the companys sole director can execute a document for the company without fixing the common seal in it. Additionally, the director can also execute a document on behalf of the company by fixing the common seal and witnessing the same (Carey, Knechel Tanewski, 2013). Meeting of the Directors A director meeting which is usually referred to as the board meeting can be called by given a notice at least 14 days prior to that date fixed for the said meeting. The notice needs to be given to each director individually. When there is a managing director, it is the duty of the managing director to check whether the notice of board meeting has reached all directors. The notice of the board meeting has to state the issues and problems which are to be raised at the board meeting. At the board meeting, the directors may appoint a chairperson from the director to hold and supervise the board meeting (Carey, Knechel Tanewski, 2013). The period for which the elected director holds his office as a chairperson can be fixed at the time of the meeting. Unless the directors determine otherwise, the quorum for a board meeting is at least two directors to be present physically and the said quorum is a pre-requisite for any valid board meeting. In case, the board meeting is without quorum, any decisions and laws made in such a board meeting will be invalid. In the recent time, the company has allowed directors to attend board meetings via Skype and video calling. Resolutions A resolution is passed when the number of director who are entitled to vote, vote in majority about a concerned issue. Thus, the majority vote becomes a resolution. The chairperson has a veto vote or a casting vote in case the votes are equal in number. There are certain situations in which a director or a chairperson is not allowed to vote for example when the said director or chairperson has a conflict of interest in what is being decided. In such a case, if the votes are equal, a separate meeting is called for to discuss the said matter and take vote again for a valid and unbiased resolution (Harpur, French Bales, 2012). Shares The company has adopted the follow all the rules of Corporation Act 2001 in the form of replaceable rules and thus the company has the authority to issue shares under section 124 of the Corporation Act 2001. This authority includes the power of the company to issue bonus shares, preferences shares and partly paid shares. Bonus shares are shares for the issue and grant of which no consideration or amount is charged by the company. The holder of bonus share is granted the same as an incentive from the company (Lowry, 2012). However, the rule in the Corporation Act 2001 states that a company is permitted to issue preference shares only when certain rights in relation to preference shares are mentioned and clearly stated in the companys constitution or the said rights are approved by a special resolution. However as the company wishes to issue preference shares which are redeemable, the rights relating to the same are mentioned in the companys constitution. These rights are as follows:- Repayment of capital Participation in excess profit and assets Cumulative and non-cumulative dividends Voting and priority in payment of dividends relating to other shares or different class of preference shares Thus, in the companys constitution as the rights in relation to redeemable preference shares is already mentioned, the rights need not be guaranteed by a special resolution and the company can issue redeemable preference shares as and when it wants. A preference share for the purpose of this section means shares which enjoy dividends and priority in payment of the same before the equity shareholders. The preference share capital is also returned before the equity share capital. Preference shares can be of multiple types however redeemable ones means a share which can be repaid after the expiry of a stimulated period or after giving the company issuing it a prescribed notice. The terms of repayment are declared while the redeemable preference share is issued. Thus, the said company can issue as many redeemable preference shares as and when it desires (Kershaw, 2012). Signed: .. Signed: Signature of the Director: .. Dated: . Section 124 of the Corporation Act 2001 discusses the legal capacity and powers of a company which is operative in Australia. The section 124 of the Corporation Act 2001 gives a company the legal capacity and power of an individual both in and outside its jurisdiction. Thus, every company operative in Australian has a separate corporate legal capacity which is distinguished from its associated living beings like the directors, managers and employees and shareholders. This also means that a company enjoys all the legal rights and freedoms which are enjoyed by a natural human being. The said legal capacity was given to a company to establish a company as a separate legal entity which can perform many functions that can be performed by an individual person like entering contracts, suing or being sued. The said capacity also reduces the pressure from the management of the company for being sued for petty reasons as the company being considered a natural person under law can be sued itsel f (Marshall Ramsay, 2012). Additionally, a company is considered to have all the powers of a cooperate body which includes the powers to:- Issue and cancel shares Issue debentures Grant options for unissued shares in the company Grant security interest which also includes a circulating security interest over the companys property (Giordano, 2011). Arrange for the company to be recognized outside its jurisdiction area and do many such things that are permitted and considered legal in the eye of law. The section 124 of the Corporation Act 2001 in Australia clearly states that companies that are limited with guarantee have no authority and power to issue shares. Thus, the Corporation Act 2001 with the help of section 124 gives a company operative in Australia legal capacity of a natural person and a cooperate body and also gives a company many more powers however the company is allowed to only engage in such activities and powers which are legal and permitted by the statute in Australia (Redmond, 2012). Section 129 of the Corporation Act 2001 in Australia is related to section 128 of the Corporation Act 2001. Section 128 of the Corporation Act 2001 discusses how individuals are allowed to make certain assumptions in relation to their dealings with the company. These assumptions are usually considered to be correct and accurate. Section 129 of the Corporation Act 2001, talks about, the assumptions which are allowed to be made, when an individual deals with a company operative in Australia. The first assumption under section 129 that can be made by an individual dealing with a company is that the constitution of the company along with the replaceable rules are complied with by the company (Lanis Richardson, 2012). Thus, the said section was established to protect an outsider who deals with the company who may not be aware of the internal working and management of the company and thus should not suffer any loss, harm or damage if the company internally fails to comply with its constit ution and the replaceable rules which are required to be complied by a company. Thus, when a company deals with an outside, the outsider is allowed to assume the company has complied with the constitution and the replaceable rules it is required to satisfy. The said section was introduced under the Corporation Act 2001 to make provisions to adopt the doctrine of indoor management in the said Act. The doctrine of indoor management states that an individual dealing with a company need not inquire about the companys internal management and can presume that the company has complied with its constitution and replaceable rules (Edwards et al., 2012). Section 588M of the Corporation Act 2001 discusses the recovery of compensation for loss resulting from insolvent trading. The said section is a consequence or an effect of the section 588G of the Corporation Act 2001 which talks about the directors duty to prevent insolvent trading by company. Thus, if a director of a company operative in Australia has breached his duty under section 588G of the Corporation Act which is to prevent insolvent trading, he is liable to pay the creditors of the company who have suffered losses as a debt and the creditor is allowed to recover the same from the directors of the company. Thus, the said section was created to keep the directors on check and make them liable for all the losses which are incurred to creditors as a result of breach of directors duties. Thus, apart from the director duties mentioned in section 180 -184 of the Corporation Act 2001, the section 588G gives an additional duty to the director of a company in Australia and provides fo r a punishment or the liability which the director has to bear unless he breaches the said duty (Latimer, 2010). Reference List Anderson, H. L., Welsh, M. A., Ramsay, I., Gahan, P. G. (2012). 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