Theoretical, Doctrinal And International Aspect Of Brexit Bournemouth University Assignment

5630 words - 23 pages

Introduction
Brexit is a historic decision taken by United Kingdom (“UK”). The exit from European Union is expected to place a huge impact on not only political and social stature of UK, but it is likely to impact legislative amendments in the UK law as well. The change in law due to Brexit is expected to be influenced under European legislation as the extent of divergence is expected from the final implementation of the decision[footnoteRef:1]. The possible merger between UK and European Economic Area (“EEA”) is subjected to release a cross border merger directive in which the extent of change and the possible change in the UK company law will be announced. [1: John Springford, Simon Tilford and Philip Whyte, ‘The economic consequences of leaving the EU’ (Centre for European Reform, June 2014) < https://www.cer.org.uk/sites/default/files/smc_final_report_june2014.pdf > 18 Jan, 2017]

In this report, the critical analysis of Brexit impact on UK company law will be conducted. The report will analyze that how Brexit will change the UK company law and make it globally competitive from theoretical, doctrinal and international perspectives.

Theoretical aspect of Brexit for UK company law
To follow Brexit, it is expected that some of UK incorporates issuers and the third country issuers working in the UK will have to understand the purpose of such directives and manage their terms of doing business in UK according to the amended law. After three months of declaring vote of UK to leave European Union (“EU”), Theresa may, the prime minister of UK released a clarified and explicit statement that eventually the mode of operation of UK from EU led company law will be exit[footnoteRef:2]. The article 50 Treaty on the functioning of European Union (“TFEU”) is declared to be implied in March 2017. The decision of exit will revoke the European community’s act 1972 which would be formed on the basis of great repeal act. The government of UK will keep the EU in place by making amendments in these laws and retaining the maximum benefit from UK investors. The change of legislative structure for the business class of UK will result in the change in deal with EU too. There is a suspicion that UK might establish a deal with EU that will tailor the needs of both parties by staying within the context of legislation[footnoteRef:3]. Therefore, the suspicion about risk and benefit of Brexit impact on UK company law is still in debate[footnoteRef:4]. However, it is pertinent to know that what possibly could go wrong and what could be in the benefit of people who are under effect of UK company law so that they can plan for the mitigation of risks and obtainance of benefit from business. Even if UK company law do not face much changes, there will still be a restriction on the free movement of people in UK and EU after changes in cross border policy and the free trade agreements. This whole scenario is being termed as “hard Brexit” as it will change the status of...

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