Ull "Running n business.
Listen and correct the mistakes in the text.
Nearly every general area of the law is relevant to running a business and nearly every country has its own set of loves designed specifically to regulate business. The attempts of European Immunity to create a single market by 1993 so just how difficult it can be to memorize business laws. In this chapter we will try to make some sense of this complex area of the law by making English law as a model and taking some international comparisons. Throughout the world, most businesses face the same problems; they must determine their organizational form; duties to clients; investors and employers; tax liabilities; and ability to minimize losses if the business fails.
Like many legal systems, English law has never developed a comprehensive code of company law. Instead, the relevant law is founded partly in suitcases decided according to the principles of canon law and equity and partly in statues. Between 1985 and 1986, a series of statutes was passed to condone many previous statutes. The most important of these was the 1985 Companies Pact.
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Debentureholders are
The lender will make sure Ms loan is secured by
A single person may operate as In partnership
Unlike members of a company, partners Unlimited company - . . Memorandum of association is
The registrar will not accept a name of a, company that is
The objects clause of the memorandum is very important because
Ultra vires means
When a company is registered, it
entitled to an annualpayment of interest, and this is not linked to the company's .profits and losses.
a charge over a company asset
a sole trader.
two or more people share management, profits and liability to debts.
may find their personal property is at risk if they are sued by creditors.
members' liability is unlimited; h is similar to a partnership.
a document which contains the name of the company, its objects, whether it is limited by shares or guarantee, and the amount of share capital
the same or similar to a company already
a company may not engage in activity beyond its registered objects.
outside the company's capacity.
receives a number and a certificate of incorporation.
To be ready to do business, a public limited a trading certificate, company must obtain
Limited by guarantee -
The advantage of a Emited company is
the company's limit is the amount they have guaranteed to contribute to company assets.
that the members cannot be sued as individuals-beyond their stated limits.
Limited company or corporation is
a lunu or arui&Ku itgm pctatuu, wim ngut to sue and be sued. •'
Limited by shares ■
Limited UabHity means
the company's limit is the amount unpaid on shares they hold.
that if the business has difficulties, the members can be made to pay its debts CW
Share is Dividend is
ownership of a proportion of a company.
the right to a proportion of any profit a company makes.
The more holds
shares the member of a company     the more voting rights he will have in general
meetings.
Shares may be acquired To sell a share at a discount means . 'to sell it for less than its nominal value.
when the company is first set up; at a later share issue; bought or received from an existing shareholder....
Selling shares is
one of the ways in which companies raise capital.
Public limited companies
raise capital by selling shares to the general public, and these shares are listed on the Stock Exchange.
U 11 -Running a business
According to the text, are the statements bellow true or false? Correct the false statements.
1. Companies limited by guarantee need to register their articles of association.    T. F
2. According to the text, articles of association detail for example rules about whether the majority is required to pass resolutions.     T F
3. Every private company must have only one director.     T F
4. A director of a company must not hold any shares of the company.     T F
5. A director may hold shares of another firm with which the company is doing business. T
6. A limited company must put an independent auditor's report as well as a profit and loss account before a general meeting of the company's members annually.     T F
7. the crime of insider trading was not recognized in English law until 1985.     T F