ACCA F4 - Corp and Business Law (ENG)

30 2: Sources of law  Part A Essential elements of the legal system

The HRA has the potential to affect many different areas of law. You should be aware of its provisions so

that you can see the potential impacts throughout the Corporate and Business law syllabus.

You should also ensure that your knowledge of the Convention is sufficient that you can understand the

impacts which are pointed out, and identify further impacts if required.

The Act binds public authorities (defined as bodies undertaking functions of a public nature). These

include government departments, local authorities, courts and schools. These public authorities must not

breach (or derogate) an individual's rights. In the case of proceedings against a public authority, there is

a limitation period of one year from the date on which the act complained of is alleged to have occurred.

The rights can be relied upon by any individual or non-government organisation including companies.

However, where rights have been derogated, the public authority can mitigate its actions by demonstrating

a legitimate need to derogate and that the derogation was proportionate to the need.

6 The impact of the Act

The Act has had an impact on new legislation, statutory interpretation and the common law.

There are many areas where the Human Rights Act has potential impact on English law. Some ideas of

where the legislation has an effect are summarised here.

BUSINESS LAW

CORPORATE LAW

English legal system

Statutory

interpretation

Control over

delegated legislation

Parliamentary

sovereignty

Employment

Discrimination

Religion

Age

Dress

code

Tribunals

Tax rights

Company law

Public authorities’

rights

Voluntary

arrangements

Government investigations Class rights

Share issues

The impact of the Act can be considered in the following areas:

 Impact on new legislation

 Impact on statutory interpretation

 Impact on the common law

6.1 Impact on new legislation

The HRA requires the person responsible for a Bill to make a statement of compatibility with the

Convention before the Bill's second reading. Where a Bill is incompatible with the Convention, a

statement to that effect can be made should the government wish to continue with the Bill anyway.

The Act may affect primary and secondary legislation through the courts – for example courts can strike

out secondary legislation that is contrary to the act. However, courts do not have this power where

primary legislation is concerned, but they can issue a declaration of incompatibility should they desire.

Exam focus

point

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