Parliamentary supremacy and Project appraisal: Difference between pages

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''UK law''.
1.
The historical principle in UK law that the UK Parliament was 'supreme' in its law-making powers.
This principle was fundamentally affected when the UK joined the EU in 1973.


Parliamentary supremacy meant that:
The evaluation and selection of projects which are most likely to maximise shareholders' wealth, by the comparative analysis of their expected cashflows.


1) The UK Parliament was able to make UK law as it saw fit either by repealing earlier statutes, over-ruling case law or by making new law.


2) No UK Parliament could bind its successor.  Parliament could not make laws that a subsequent Parliament was prevented from altering or repealing.  
2.


3) The UK courts had to apply the relevant statute law enacted by the UK Parliament.
Similar evaluation techniques taking account of additional factors and considerations - as well as the expected project cashflows - including for example the existence of real options.
By joining the EU, UK Parliamentary supremacy was fundamentally affected and it is no longer true to say that only the UK Parliament has the power to make new law for the UK. 
The effect of becoming a member of the EU was to cede the UK Parliament's supremacy on certain matters of European Union law which have direct effect on member states.


The position now is that: 


1) The EU may pass legislation directly for the UK.
Also known as ''Project analysis.''


2) The UK cannot, generally, make laws that conflict with EU law.


3) Overall, EU law enjoys supremacy over domestic national law and is applied in priority to domestic law.
'''Points to note'''
 
Note for both definitons above that ''projects'' are anything involving expenditures for which the benefits, or some of them, occur at a different time from that of the expenditure or some it.
 
As well as capital expenditure, included are, for example, acquisitions and disposals, marketing expenditure, advertising, staff training or buying a new coffee pot for a staff refreshment station.
 
It is only worthwile devoting time and effort in formal project appraisal for projects involving material amounts of expenditure.




== See also ==
== See also ==
* [[European Union ]]
* [[Real option]]
* [[Sovereignty]]
* [[Real options valuation]]
* [[Sunk costs]]
 
 
=== Other resources ===
* [[Media:2015_07_July_-_Hidden_treasure.pdf| Hidden treasure, The Treasurer, 2015]]


[[Category:Corporate_finance]]

Revision as of 15:52, 13 May 2016

1.

The evaluation and selection of projects which are most likely to maximise shareholders' wealth, by the comparative analysis of their expected cashflows.


2.

Similar evaluation techniques taking account of additional factors and considerations - as well as the expected project cashflows - including for example the existence of real options.


Also known as Project analysis.


Points to note

Note for both definitons above that projects are anything involving expenditures for which the benefits, or some of them, occur at a different time from that of the expenditure or some it.

As well as capital expenditure, included are, for example, acquisitions and disposals, marketing expenditure, advertising, staff training or buying a new coffee pot for a staff refreshment station.

It is only worthwile devoting time and effort in formal project appraisal for projects involving material amounts of expenditure.


See also


Other resources

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