Corporate and Business Law (CL) is the fourth exam you will be required to appear in your ACCA journey and the first exam of the ACCA skills level. The syllabus of Corporate and Business Law (CL) aims to develop knowledge and skills in the understanding of the general legal framework, and of specific legal areas relating to business, recognizing the need to seek further specialist legal advice where necessary. NCFM Academy Hyderabad offering ACCA Paper F4 Corporate and Business Law (CL) its Ameerpet Branch for Classroom Training.
Corporate and business law is a two-hour computer-based exam. The examination consists of two sections. Section A comprises of 25 two mark objective test questions with 50% weightage and 20 one mark objective test questions with 20% weightage.
Section B comprises of 5 six marks multi-task questions with 30% weightage. All questions in the examination are compulsory.
Syllabus of ACCA Paper F4 Corporate and Business Law
The syllabus is divided into eight sections with further sub-sections.
A- Essential elements of legal systems
This is the first section of this course, the aim of this section is to introduce the students to the essential elements of legal systems. The students will develop an understanding of the interrelationship of the business, economic, political and legal systems and the doctrine of separation of powers and is an impact on the legal systems. They will learn the difference between civil and criminal law as well as the operation of the legal systems of common, civil and sharia law.
This section will also introduce the students to international trade and the need for legal regulations to regulate international trade. Students will learn the roles of international organizations such as the UN, OECD, UNIDROIT, UNCITRAL, and courts in the promotion and regulation of international trade.
This section also covers alternative dispute resolution mechanisms, where the students will be required to explain and evaluate the merits of court-based adjudication and alternative dispute resolution mechanism. Students will be required to explain the role of an international court of Arbitration.
Students will be required to explain and apply in detail the provisions of the UNCITRAL Model Law on International Commercial Arbitration and describe arbitration tribunal and awards.
B- International business transactions
This section will introduce the UN convention on contracts for the international sale of goods and ICC incoterms, students will be required to explain the sphere of application and general provisions of the convention.
This section will also cover the obligations of buyer and seller and the provisions of law common to both the parties related to the delivery of goods, payment, damages, and remedies to the breach of contract.
C- Transportation and payment of international business transactions
This is the third section of this course and it covers the underlying legal system for the transportation and payment of international business transactions. Students will be required to understand and explain the operation and rules for the bill of lading and bill of exchange, the operation of the bank transfer and UNCITRAL rules on international credit transfer.
D- The formation and constitution of business organizations
This is the fourth section of this course and it covers the rules and laws related to the formation and constitution of business organizations. The students will be introduced to the operation of agency law and the law of partnerships.
This section will cover the difference between different business entities e.g. sole traders, partnerships and limited and unlimited liability companies. Building upon this the nature, role, formation and constitution of a company will be covered. Students will be required to understand how a company is formed and the legal requirements which are required to be fulfilled by a company.
E- Capital and the financing of companies
This is the fifth section of this course, it will focus mainly on the capital requirements and financing of companies. Students will be required to learn and understand different types of share capital, differentiate between different classes of shares and the issue of rights and bonus shares.
Loan capital will also be covered under this section. Students will learn about the borrowing powers of a company, the difference between loan capital and debentures and the related rights thereof. The doctrine of capital maintenance and a capital reduction will also be introduced and the students will be required to illustrate the rules relating to the distribution of dividends in both public and private companies.
F- Management, administration and the regulation of companies
This is the sixth section of this course and it covers the role and duties of company directors and the different types of directors, how directors are appointed and removed, other company officers, their roles and responsibilities and the procedure of their appointment and removal. Students will also learn about the different types of company meetings and resolutions, the procedure and requirements for calling a meeting and the matters that should be discussed thereon.
G- Insolvency law
The seventh section of this course covers the insolvency law. Students will be required to learn and understand the procedure required for voluntary liquidation, compulsory liquidation, how the debts will be paid off and any alternatives to liquidation.
H- Corporate fraudulent and criminal behavior
In the final section of this course, students will learn the nature and consequences of corporate fraud and criminal behavior including insider training, market abuse, money laundering, and bribery.