ACCA F4 - Corp and Business Law (ENG)

(Jeff_L) #1

24 2: Sources of law  Part A Essential elements of the legal system


Legislation can also be categorised in the following ways:
 Public Acts; legislation that affects the general public
 Private Acts; legislation that affects specific individuals and groups
 Enabling legislation that empowers a specific individual or body to produce the detail required
by a parent Act.

2.3 Parliamentary procedure


A proposal for legislation can be brought by the government, a backbench MP, or a peer. A government
bill may be aired in public in a Government Green or White Paper. A government bill may be introduced
into either the House of Commons or the House of Lords. When it has passed through one House it must
then go through the same stages in the other House.
In each House the successive stages of dealing with the Bill are as follows.

Stage 1 First reading. Publication and introduction into the agenda. No debate.
Stage 2 Second reading. Debate on the general merits of the Bill. No amendments at this stage.
Stage 3 Committee stage. The Bill is examined by a Standing Committee of about 20 members,
representing the main parties and including some members at least who specialise in the
relevant subject. If the Bill is very important, all or part of the Committee Stage may be
taken by the House as a whole sitting as a committee.
Stage 4 Report stage. The Bill as amended in committee is reported to the full House for approval.
Stage 5 Third reading. This is the final approval stage.

When it has passed through both Houses it is submitted for the Royal Assent which is given on the
Queen's behalf by a committee of the Lord Chancellor and two other peers. It then becomes an Act of
Parliament (statute) but it does not come into operation until a commencement date is notified by
statutory instrument.

2.4 Advantages and disadvantages of statute law


Statute law has the following advantages and disadvantages:
(a) Advantages
(i) The House of Commons is elected at intervals of not more than five years. Hence the law
making process is theoretically responsive to public opinion.
(ii) Statute law can in theory deal with any problem.
(iii) Statutes are carefully constructed codes of law.
(iv) A new problem in society or some unwelcome development in case law can be dealt with
by passing an Act of Parliament.
(b) Disadvantages
(i) Statutes are bulky.
(ii) Parliament often lacks time to consider draft legislation in sufficient detail.
(iii) A substantial statute can take up a lot of Parliamentary time.
(iv) Statute law is a statement of general rules. Those who draft it cannot anticipate every
individual case which may arise.
Free download pdf