Manchester Football Dreams Ltd
Five conquering football players namely Louis, Tommy, Alex, Ron and Matt set up a footballs company after being successfully retired from their careers. The main focus of their company was to help the footballs teams by providing them effective coaching. Also they were aimed to give them proper training techniques and give them best quality products at the cheapest rates. They established a company under the name of “Matchester Football Dreams Ltd”. These three were famous and successful football players of their time and thus they decided to transfer their skills and abilities to make other teams benefit from it. They also provided them best goods at low costs. Louis and Tommy were brothers and they were also the directors of the company having 30% shares each. 20% shares were held by Alex and Ron and Matt held remaining 10% shares respectively of the share capital N.A, 2015.
The company was registered under the Companies Act 2006 which has been surpassed by the Corporation Tax Act 2009. This act mainly focuses on the directorial duties of the directors of the companies listed with this act. This has also introduced many new provisions for the private and public companies. According to this act, the director of the company was given the complete power to allot shares as he suggested. Also the director acts as a safe keeper of the investments of stakeholders. One of the directors of the company Matchester Football Dreams Ltd, Louis, was also responsible for financially managing the company as compared to the other stakeholders. He had the responsibility to keep all the documents of the company up to dated in order to avoid the bad consequences of any kind of circumstances. He was also responsible for renewal of public liability insurance for 2014. Public Liability Insurance is a type of insurance cover for businesses that ensure that they are fully secured and assured. This insurance would secure that part of business if any customer of that business is injured or suffered in response to the business activities of the specific business if the suffered or injured person files a claim for compensation. This insurance covers all legal expenses including compensation payments (Brady, 2015).
Louis was responsible for the renewal of Public Liability insurance. The insurance company sent many reminders despite that Louis forgot to put the renewal of this document. It was a major mistake which lead to many bad consequences. There was a training session going on by the coaches who were working for the Matchester Football Dreams Ltd. A clash between two players led to severe injury of one of the players. This could have been easily compensated from the insurance claim if it was available. But due to the lack of responsibility from Louis, it was not up to date and thus was useless at this moment. If the policy was in working condition, it would have benefitted the business as to fulfill the claim lodged by the injured player. This kind of lack of task was not much expected from Louis as he had 15 years experience of auditing and financial consulting apart from his football career (Beasley, 2008).
The second brother Tommy who also held the position of second director had the duty of marketing and managing marketing activities of the business. He used to go to neighboring areas to put on the market the services which were provided by the company. Once he went to St Hatfields Rugby Club. The management at St Hatfields Rugby Club offered that they wanted coaches to coach Rugby in the local area. Tommy went back to his management and proposed them the idea which St Hatfields Rugby Club had given. However it was rejected and the management decided that they should keep all their focus on the football rather than other sports. Tommy went back and told the decision to the management of St Hatfields Rugby Club. The management offered Tommy a position of Technical Director at St Hatfield Rugby Club having the responsibility of taking care and looking after the coaches. Tommy left the position of Director at Matchester Football Dreams Ltd and joined St Hatfields Rugby Club as Technical Director. This was a drawback for the business (Hiscox, 2015).
Matchester football Dreams Ltd imported different type of football equipments from an overseas company which provided them balls, kits, wearing kits etc. This relationship was established by Louis and Tommy when they were both directors at the company. After some time it came into notice that the equipment that was manufactured abroad involved children who used to work for hours for the completion of these equipments. When this came into notice of the management, they became very cautious as importing good from this company. A stakeholder Matt was of the point of view that importing goods from this company would affect the reputation of their own company as there were strict laws against the child labor. He asked to end the relation with this company however every other member said to continue this relation as purchasing this equipment from this company would keep the costs low and production overhead will also be less. In this way the company would reduce its overall costs and could use this savings on the teams that they were supporting (Feikert, 2008).
Managing and establishing a business is not an easy task. Matchester Football Dreams Ltd was established by a group of footballers who were successful players of their time but had no business experience. Louis, one of the directors, was an experienced financial person but he made many blunders and lapses in his business including the non-renewal of Public liability insurance which was left over by Louis leading to the disaster of collision of two players. The company had to suffer a lot due to these problems. The second director Tommy left the company to work for the Rugby club even though he was 30% shareholder in the company. When this came into notice that the equipment that they were importing from the overseas company was manufactured by small children, they didn’t stop their import even though they knew that child labor was a big crime in companies’ act 2006. They just looked after their interest of low costs without taking care of the child labor which could affect their company too (ANDREW, 1998).
- ANDREW, B. 1998. CHILDREN – THE MODERN LAW 494 (2nd ed) Beasley, R. 2008. Why Public liability insurance is essential. Simply Business [Available online]: http://www.simplybusiness.co.uk/knowledge/articles/2008/04/2008-04-29-why-public-liability-insurance-is-essential–5/ (Retrieved on 10 March, 2015)
- Brady, A. 2015. Blood Bricks Campaign: Companies that want to work in Britain must stamp out slavery. International Business Times [Available Online]: http://www.ibtimes.co.uk/blood-bricks-campaign-companies-which-want-work-britain-must-stamp-out-slavery-1490514 (Retrieved on 10 March, 2015)
- Feikert. C (2008). Children’s Right [Available online] http://www.loc.gov/law/help/child-rights/uk.php (Retrieved on 10 March 2015)
- Hiscox. (2015). Public Liability Insurance [Available online] http://www.hiscox.co.uk/business-insurance/public-liability-insurance/ (Retrieved on 10 March 2015) The Children and Young Persons Act. 1933. Part II and section 107