a) Identify and explain the three tests that are used to distinguish an employee
from an independent contractor. Give one example of case law to illustrate each
test

b) Henry is a majority shareholder in three companies. Such companies have
faced difficulties with their business and Henry has approached you, as a
lawyer, to give him some legal advice. His concern is whether or not there is
sufficient ground in each case for compulsory winding-up by the court.
i. Middle East Ltd. is a private trading company. This company owed £5,000
to a supplier of office equipment. The supplier has served a formal written
demand on the company 2 months ago and the company fails to pay the debt.
ii. New Heaven Ltd. was registered as a private company. For personal
conflicts, the directors of the company quarrelled bitterly, leading to the
deadlock in management and inability to make business decisions.
ili. For administrative reasons, Paradise Plc. was registered as a public
limited company 9 months ago but it has not yet been issued with a trading certificate.

Question 2:
a) Distinguish between a company and a partnership.

b) Andrew is managing director of a company. He has the power to conclude
contracts for sale of goods. He accepted a bribe from a supplier with the
intention that all future supplies needed by the company would be ordered from
that supplier. In facts, the price of goods provided by this supplier is higher than
others' in the market.
Is the managing director in breach of his duties? If so, which duty was the
managing director in breach of? Explain the reason.

A control test simply refers to the level of control that an employer has over the workers. An employee is subjected to orders from the employer unlike the independent contractor.

Integration test implies that the employees are part of an essential group in the organization. Lastly, the multiple-factor test is when various factors are taken into consideration to determine if one is an employee or not. For example, in Short v Anderson (1946), the criteria used were the power of choice, renumeration, etc.

A company is an association of persons that have a common objective of providing services to customers while partnership is an agreement between two or more people to run a business and share its profit.

Lastly, based on the information given, the manager is in breach of his duties. Bribery and corruption aren't part of the principles of a company.

Learn more about independent contractors on:

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