Company Law – Key Week 1 0. Text zadán předem (Task 2)a také odpovědi na otázky z textu (Task 3a)- dle uvážení učitele IN CLASS: 0. There are a number of options for a warm up. E.g. a) Mingling – find someone you do not know, you have not talked to and ask him/her questions to find out two things: a) what is special about them; b) course expectations. (20 mins.) Students are asked to get up and start moving around the classroom, approach someone new to them. Usually, very interesting things are discovered and students love this activity as they like talking about themselves. 10 minutes for asking questions in pairs, then 10 minutes for sharing their findings. Also, teacher can hear the new students for the first time. Then teacher writes down students´ course expectations on the board. b) Brainstorming – what films, series on law or on business you can think of? 1. Brainstorming Think of as many words as possible, which are linked to the area of business law, running a business, companies etc. (5 mins.) KEY: Examples: contract, company, limited liability company, shareholder, shares, debentures, set up/run a company, to go bankrupt, articles of associations, partnership, sole trader, … 2. Reading, mind maps and mini-presentations (20 mins.) You have read the text at home. Your teacher will ask you to join one of the four groups, in which you will be asked to create a mind map. Do you know what it is? Make sure you understand the terms and can give Czech translations. Group A – looks for types of business organization Group B – looks for steps how to set up a corporation Group C – looks for potential problems, e.g. how to raise capital, with taxes etc. Group D – looks for ways to terminate business Be prepared to give a mini-presentation for the other groups. Students are given posters and pens and have 10 mins to prepare mind maps, then each group presents for 2 minutes OR on-line tools for mind maps can be used and then project (e.g. http://www.mindmeister.com/education) Running a business Law students wishing to pursue a career in an international setting will most likely get engaged in the area of business law and trade law. Those who seek to impress in this field must first get acquainted with various organizational forms of business and their attributes. When someone is very independent and skilled in a craft or an art (though this is not always required),he may become a sole trader (or a sole proprietor in the USA). The advantage is that all the profits he makes go to him. On the other hand, he is fully liable for all debts he may incur. Alternatively, he
Transcript
Company Law – Key
Week 1
0. Text zadán předem (Task 2)a také odpovědi na otázky z textu (Task 3a)- dle uvážení učitele
IN CLASS:
0. There are a number of options for a warm up. E.g.
a) Mingling – find someone you do not know, you have not talked to and ask him/her
questions to find out two things: a) what is special about them; b) course expectations. (20
mins.)
Students are asked to get up and start moving around the classroom, approach someone new to
them. Usually, very interesting things are discovered and students love this activity as they like
talking about themselves. 10 minutes for asking questions in pairs, then 10 minutes for sharing
their findings. Also, teacher can hear the new students for the first time.
Then teacher writes down students´ course expectations on the board.
b) Brainstorming – what films, series on law or on business you can think of?
1. Brainstorming
Think of as many words as possible, which are linked to the area of business law, running a
business, companies etc.
(5 mins.)
KEY:
Examples: contract, company, limited liability company, shareholder, shares, debentures, set up/run a company, to go bankrupt, articles of associations, partnership, sole trader, …
2. Reading, mind maps and mini-presentations
(20 mins.)
You have read the text at home. Your teacher will ask you to join one of the four groups, in which
you will be asked to create a mind map. Do you know what it is? Make sure you understand the
terms and can give Czech translations.
Group A – looks for types of business organization
Group B – looks for steps how to set up a corporation
Group C – looks for potential problems, e.g. how to raise capital, with taxes etc.
Group D – looks for ways to terminate business
Be prepared to give a mini-presentation for the other groups.
Students are given posters and pens and have 10 mins to prepare mind maps, then each group
presents for 2 minutes OR on-line tools for mind maps can be used and then project (e.g.
http://www.mindmeister.com/education)
Running a business Law students wishing to pursue a career in an international setting will most likely get engaged in the area of business law and trade law. Those who seek to impress in this field must first get acquainted with various organizational forms of business and their attributes. When someone is very independent and skilled in a craft or an art (though this is not always required),he may become a sole trader (or a sole proprietor in the USA). The advantage is that all the profits he makes go to him. On the other hand, he is fully liable for all debts he may incur. Alternatively, he
may decide to find a partner to carry on a business jointly with a view to profit. The prospect of gaining profit is sure to lure many but, alas, this arrangement also brings about joint liability for any losses and debts. In legal terms, “partners are liable jointly and severally, just as they own property in common” (Partnership Act, 1890, s. 1). Partnership as a type of business organization is quite common among lawyers and other professionals who team up to operate as partners. The third type of business organization is a company. The company (or corporation in the USA) is seen as a legal entity (or artificial legal person) which is separate from its members who are liable for its debts in varied forms according to the type of company. The continuum ranges from liability limited by shares to liability limited by absolutely nothing at all. In the former, members (or shareholders) are liable for debts up to a certain limit, this limit being the capital originally invested, i.e. the amount unpaid on shares they hold. In the latter, the members are fully liable for debts, which is precisely the reason why this type of business organization is not very common. Limited companies are further divided into private and public ones, which has nothing to do with distinguishing private or state-owned associations, but these terms tell us whether the company in question issues shares that are available to the public or not. These shares (or stocks in the USA) may then be bought and sold on the stock market, or more specifically, on the Stock Exchange. Private limited companies are usually small, often family-run businesses, which may decide to become public as they grow bigger. Names of these two types of companies include abbreviations Ltd. (roughly corresponding to Inc. in the USA) and plc, respectively. Companies, like human beings, tend to reproduce, their offspring being called subsidiaries (their parents being referred to as parent company or holding company). Also like humans beings, they are subject to income tax, companies have to pay corporate tax, which is something not to everyone’s taste, so there are some who seek refuge in a tax haven, such as the Cayman Islands or Monaco. Unfortunately, or luckily, depending on how you look at it, the number of such places in the world has currently been shrinking, and governments in various parts of the world are tending to curb the phenomenon of off-shore companies. Also, like other living creatures, companies may be involved in the food-chain existing in the corporate world when small ones are devoured by larger ones. One form of this act in the UK is takeover when a bidder makes an offer to purchase a certain number of shares of a public company in order to acquire control of that company. If the board of directors rejects the offer and the bidder continues to pursue it trying to have his way, this is aptly called a hostile takeover. In order to expand, companies need capital to finance such operations. Issuing shares is just one way of raising capital. Companies may also sell debentures (or bonds) which are instruments used to borrow money at a fixed rate of interest. The loan is usually secured by a charge over a company asset. Debentures as well as shares are freely transferable, which means that they may be sold to a third party. The owners of shares may also be paid a dividend (a proportion of the profit made) but this is up to the board of directors to decide whether to pay dividends or rather invest the profit in the development of the company. The process of setting up a private limited liability company, which is the most common type of business in the UK, includes registration (or incorporation) with the Companies House. First, you have to fill in a basic form containing the company name, the location of its registered office and the share capital information. The next step, drafting a document called the memorandum of association (articles of incorporation in the USA) has now been greatly simplified, including only information about the members and the share capital. The third document is called articles of association (by-laws in the USA)including details of running the company and internal management. If all the legal requirements are met, a certificate of incorporation is issued and the company may start to operate. Providing information is also connected with the phenomenon of insider trading (or insider dealing, in the USA), frowned upon by courts but still practiced on a wide scale despite the fact that since 1967, it has been a crime in the UK for which the law imposes the maximum penalty of two years imprisonment. It consists of making use of confidential information to buy or sell shares or
in selling this kind of information to stockbrokers. Obviously, such wrongdoings may typically be committed by those who have access to confidential information, i.e. managers or directors who, if convicted, are called white- collar criminals. As everything in this world has its start and end, also a company may come to an end, which is called termination or dissolution. The reasons for terminating a company are varied and may be summed up as follows. One reason is that the company simply ceases to exist and is removed (or expunged) from the register. Another reason for cancelling the registration is the situation when the objects of the company turn out to be illegal, e.g. when the company was set up for the purposes of prostitution. Nevertheless, the most frequent type of ending the life of a company is liquidation, achieved by the process known as winding up [sic], voluntarily or involuntarily, in the situation when the company has become insolvent, i.e. it is unable to pay its debts as they fall due. If private individuals come to this bitter end, they are said to have gone bankrupt. In the USA, this distinction is not made, as the word bankruptcy refers to both companies and individuals.
Key: terms worth pointing out are highlighted
Created by the team of authors.
3. Reading comprehension
You listened to mini-presentations and read the text in advance, so you should easily answer the
following questions. Look at them with a person sitting next to you. Can you answer them all and
fill in the table below?
a) Students were asked to do this task 3a) before class, so if there are no problems with
understanding the text, this can be skipped in the classroom.
1. What are the various organizational forms for running a business? 2. Are there any priorities, advantages or disadvantages for choosing a particular business entity? 3. Consider the aspects of liability, capital contributions and management. 4. What changes may happen in the life of a company? 5. How do the companies raise capital? 6. How can a company be formed and what documents are needed? 7. Do you know anything about insider trading? 8. What is the final stage in the life of a company? 9. What are the most important companies and entrepreneurial or legal business entities in your country?
Key:
1. What are the various organizational forms for running a business?
sole trader=sole proprietor
partnership – limited, general
limited liability company – by shares, private and public
unlimited liability company
2. Are there any priorities, advantages or disadvantages for choosing a particular business
entity?
sole trader – enjoys all the profits but liable for all debts
partners – liable jointly and severally, share profits but liable for the debts and losses
company – a legal entity separate from its members
private company limited by shares – members liable upt to a certain limit
public limited company – shares available to the public, sold or bought on the Stock
Exchange
3. Consider the aspects of liability, capital contributions and management.
viz Krois-Lindner and TransLegal. International Legal English. CUP, 2006.
Entity - answers Liability of owners Capital contributions Management
1. Sole proprietorship
Unlimited personal liability for the obligations of the business
Capital needed is contributed by sole proprietor.
Business is managed by the sole proprietor.
2 Private limited company (Ltd.)
Generally no personal liability of the members for obligations of the business
No minimum share capital requirement. However, capital can be raised through the issuance of shares to members or through a guarantee.
Company is managed through its managing director or the board of directors acting as a whole.
3. Public limited company (PLC)
No personal liability; liability is generally limited to shareholder contributions (i.e. consideration for shares)
The minimum share capital of GBP 50,000 is raised through issuance of shares to the public and/or existing members.
Company is managed by the board of directors; shareholders have no power to participate in management.
4. Partnership
Unlimited personal liability of the general partners for the obligations of the business
Partners contribute money or services to the partnership; they share profits and losses.
The partners have equal management tights, unless they agree otherwise.
4. What changes may happen in the life of a company?
Subsidiaries, parent company or holding company, off-shore company
takeovers, mergers, acquisitions
5. How do the companies raise capital?
issuing shares
selling debentures, bonds
borrowing money
6. How can a company be formed and what documents are needed?
registration, incorporation with the Companies House
filling in a basic form – name, registered office, share capital
memorandum of association
articles of association
7. Do you know anything about insider trading?
using confidential information to buy or sell shares
8. What is the final stage in the life of a company?
termination, dissolution
the company ceases to exist, is removed from the register, the registration is
cancelled, liquidation = winding up because of being insolvent, bankupt
9. What are the most important companies and entrepreneurial or legal business entities
In your country? (Try to elicit a range of types of companies.)
Joint-stock company (akciová společnost – “akc. spol.“ “a. s. ”)
Limited liability company ( společnost s ručením omezeným – “spol. s r.o.“ or “s.r.o.“ ) –
General partnership ( veřejná obchodní společnost – “veř. obch. spol.“ or “v.o.s.“ ) –
Limited partnership (komanditní společnost – “kom. spol.“ or “k.s.“ ) –
Nový občanský zákoník se věnuje i podnikání a právnickým osobám. Zavádí tři typy
právnických osob s označením korporace, fundace a ústavy.
Právnická osoba dle nového občanského zákoníku
Právnickou osobu označuje nový občanský zákoník jako „organizovaný útvar“, který má
právní subjektivitu. Tyto umělé útvary jsou vytvořeny, aby sloužily zájmům lidí. Od toho se
odvíjí i rozdíly mezi fyzickými a právnickými osobami. Majetek právnické osoby nepatří (na
rozdíl od osob fyzických) jejím zřizovatelům, ani členům kolektivních orgánů. Náleží přímo
právnické osobě.
Jak vysvětluje na svých internetových stránkách ministerstvo spravedlnosti, právnické osoby
mohou sloužit soukromým zájmům (např. běžná obchodní banka), anebo zájmu veřejnému
(např. Česká národní banka). Právnické osoby veřejného práva se řídí zvláštními zákony, jako
jsou zákon o obcích, zákon o ČNB, zákon o vysokých školách atd. Jestliže ale obec, kraj nebo
Česká lékařská komora vystupují jako soukromníci, kupříkladu jako smluvní strana, mají
vzhledem k zásadě rovnosti stejné právní postavení jako jiné osoby.
Typy právnických osob
Podle nového občanského zákoníku se budou od roku 2014 rozlišovat tři typy právnických
osob, a to korporace, fundace a ústavy.
• Korporace (právní úprava § 210 – 302) – základem je společenství lidí nebo
právnických osob, korporace bez společníků a členů ani nemůže existovat (corpus
= tělo). V korporacích je vždy někdo, kdo o věcech korporace rozhoduje (člen nebo
společník) a současně má podíl na zisku nebo na likvidačním zůstatku. Obchodním
korporacím se věnuje nový zákon o obchodních korporacích, rovněž účinný od
ledna 2014, který nahradí dosavadní obchodní zákoník. Mezi obchodní korporace
patří veřejná obchodní společnost, komanditní společnost, společnost s ručením
omezeným, akciová společnost a družstvo, včetně družstva bytového a sociálního.
Jejich primárním úkolem je podnikání, tedy dosahování zisku.
Korporací v pojetí občanského zákoníku je občanské sdružení, nově „spolek“. Ten je doposud
upraven zákonem o sdružování zákonů, jenž nový občanský zákoník od příštího roku ruší.
Stejně jako dosud, mohou spolek založit alespoň tři osoby. Účel (poslání) spolku může být
jakýkoliv, s výjimkou podnikání. To ale neznamená, že by spolek nemohl podnikat. Ovšem
pouze v rámci vedlejší činnosti k podpoře naplňování svého hlavního účelu, ne k rozdělování
podílu na zisku mezi členy.
• Fundace (právní úprava § 303 – 401) – jedná se zpravidla o nadace nebo nadační
fondy. Jejich základ (fundus) tvoří majetek určený k určitému účelu.
• Ústavy (právní úprava § 402 – 418) – zde je osobní i majetková složka propojena.
Ústav nemá členy stejně jako korporace, ale zaměstnance. Majetek ústavu není
tak chráněn jako u fundací. V současnosti se jedná především o obecně prospěšné
společnosti.
Podnikatel podle nového občanského zákoníku
Občanský zákoník se zabývá i podnikáním. Nově definuje podnikatele, instituty obchodní
firmy, závodu, obchodního tajemství nebo jmění. Ze stávajícího obchodního zákoníku se
přebírá úprava prokury, tj. smluvního zastoupení podnikatele.
Podle nového občanského zákoníku je podnikatelem ten, kdo samostatně vykonává na
vlastní účet a odpovědnost výdělečnou činnost živnostenským nebo obdobným způsobem se
záměrem činit tak soustavně za účelem dosažení zisku. Pro účely ochrany spotřebitele se za
podnikatele považuje ten, kdo uzavírá smlouvy související s vlastní obchodní, výrobní nebo
obdobnou činností či při samostatném výkonu svého povolání, popřípadě osoba, která jedná
jménem nebo na účet podnikatele. Podnikatelem je také osoba zapsaná v obchodním rejstříku, má k
podnikání živnostenské nebo jiné oprávnění. Podnikatel, který nemá obchodní firmu, právně jedná při
svém podnikání pod vlastním jménem.
Podnikání a rodinný závod
Závod (dosud podnik) je sice i v novém pojetí stále chápán jako věc, ale pro jeho vznik
a vymezení jeho obsahu je oproti dnešku více zohledňována vůle jeho vlastníka, tedy
podnikatele. On určí, kdy závod vznikne, co bude jeho obsahem, ale také to, zda bude
podnikatel provozovat více závodů nebo zda zřídí pobočky atd.
V rodinném závodě budou spolupracovat manželé nebo ostatní příbuzní.
Rodinný závod podle nového občanského zákoníku (§ 700 až 707) by se dal charakterizovat
jako speciální typ obchodního závodu. Nejedná se o právní subjekt, ale z hlediska právní
teorie spíše o věc hromadnou. Jedná se o závod, kde spolu pracují manželé, jejich příbuzní až
do třetího stupně, nebo osoby sešvagřené až do druhého stupně. Může se ale jednat i o osoby,
které trvale pracují pro rodinu, zejména ty, kteří se pravidelně starají o chod rodinné
domácnosti.
Rodinný závod má sloužit k obživě rodiny, jeho členové by tedy měli mít právo
spolurozhodovat o zásadních otázkách týkajících se provozu. Je zakotveno pravidlo
nezbytného souhlasu většiny členů rodiny účastnících se na provozu rodinného závodu.
Jednotliví členové se podílejí na zisku i na věcech z tohoto zisku nabytých v míře
odpovídající množství a druhu jejich práce. Stejně tak budou mít právo na následné
vypořádání svého podílu i s jeho přírůstky v případě zániku jejich členství na rodinném
závodu (v případě odchodu člena rodiny z rodinného závodu bude možné se dohodnout na
vyrovnání formou splátek).
Čas ukáže, nakolik se tato novinka osvědčí v praxi. Tedy, zda bude rodinnému podnikání
ku prospěchu, třeba i za pomoci nezletilých potomků, jimž rodiče podle nového občanského
zákoníku mohou udělit svéprávnost, nebo naopak přibude soudních rodinných sporů
o majetek z podnikání, podíly na zisku apod.
Použitá literatura a zdroje:
• www.justice.cz
• ELIÁŠ, Karel. Občanské právo pro každého: pohledem (nejen) tvůrců nového občanského zákoníku.
Vyd. 1. Praha: Wolters Kluwer Česká republika, 2013, 315 s. ISBN 978-80-7478-013-4.
Created by the team of authors.
4. Listening
(Source: Introduction to International Legal English, U 5, p. 53, Lecture on company law; students will
be practising note taking and catching detailed information)
You are going to hear an introductory lecture on company law at an American university. Listen to
the recording and take notes. One group listens for advantages and disadvantages of corporations.
The other groups listens to advantages and disadvantages of sole proprietorships and partnerships.
(15 minutes)
(Play the recording twice – 3.34 min, i.e. 7 mins, ) either as it is or b) shortened and cut by Radka D.
After listening, students compare notes, first in their groups, then they share it as a class.
Corporations Advantages Disadvantages
Stockholders are not liable for corporate debts - Higher costs(set up, run
Self-employment tax savings (only salaries not profits) are subject to self-employment taxes - Formal organization and
Continuous life corporate, - Technical formalities
(holding board and shareholder meetings, recording minutes
- Time consuming
Easier to raise money (sell shares etc.) - Unemployment tax
Easier to transfer (ownership interests may (A stockholder-employee be sold to third parties of a corporation is required
to pay unemployment unemployment insurance taxes on their salary
Sole proprietorships / Partnership Advantages Disadvantages
- Owners are personally liable for the debts of their business
- If the assets cannot satisfy the debt, creditors can go after each owner´s personal bank account, house etc. to make up the difference
- Earnings from a sole proprietorship are subject to self-employment taxes
- It expires upon the death of a sole proprietor/partner
- Cannot be sold whole (each of its assets licences, permits must be individually transferred), new bank account is required
+ cheaper to set up, run etc. + do not have to pay unemployment insurance taxes
Based on: Krois-Lindner, Matt Firth and Translegal. Introduction to International Legal English. CUP, 2008.
5. Speaking – Students work in different pairs, before the activity they are divided into different pairs
(e.g. the teacher gives each student a number 1,2,3,4,5,6,7 or 8 and then again 1,2,3,4,5,6,7 and 8,
then students of the same number get together)
Role-play: Lawyer – client interview
Make pairs, one of you plays the role of a lawyer, the other is a client.
a) Lawyer
A self-employed client, a hairdresser, approached you to discuss whether she should conduct
her business as a sole proprietorship or if she should incorporate (become a corporation) or
enter into a partnership with some other colleagues. You know very little about her.
Prepare to meet the client and make a list of questions you should ask in order to give her the
best advice. As you prepare, consider the advantages and disadvantages each type of company
would have for the client.
b) Client
You have been working as a self-employed hairdresser for a couple of years and have recently
taken on two apprentices. You would like to expand your business even further, as your
business is going well. Your business has a very good reputation. Prepare to meet your lawyer
by considering the kinds of question you will need to ask. Your lawyer will also ask you about
your business, so be ready to answer questions on your current situation and your future
plans.
Created by the team of authors.
6. Practising definitions
2 varieties
Option 1: croswords
The teacher divides the class into pairs (Student A and Student B) and distributes crosswords – A
and B to individual pairs. Each pair gets crossword A and crossword B. They must not show the
crosswords each other and with the help of the other partner fill in their crosswords. This may be
done as a competition.
Option2: matching - slips
Students are given slips with definitions to be matched. They are prepared on the table in our staff
room. There are 13 definitions. All are included below.
(5 minutes)
(if there is not enough time in the session, this activity can be used as the first one in the following
session as a warm up and repetition.
A definition precisely explains the fundamental state or meaning of something, often given formally as by lexicographers writing a dictionary or legislators writing laws. e.g. Explaining definition: Income tax is a tax on a person´s wages or salary and on most other sources of income, including unearned income and the profits from an unincorporated business. e.g. Naming definition Incorporation is The formation of an association that has corporate personality is called incorporation.
The following expressions are used in the crosswords as there were limits (there are two options):
Sole trader – a person who owns their own business and does not have a partner or any
shareholders.
Partnership – a relationship in which two or more people, organizations, or countries work
together as partners.
Stock Exchange – is a place where people buy and sell their stocks and shares.
To go bankrupt – people or organizations do not have enough money to pay their debts
Shares – equal parts into which a company´s ownership is divided.
A debenture –it is a document that acknowledges and contains the terms of a loan (usually to a
company). It is a type of savings bond which offers a fixed rate of interest over a long period.
legal entity or artificial legal person – an entity, such as a corporation, that is recognized as having
legal personality.
liquidation/winding up – a procedure by which a company can be dissolved.
These expressions were not included in the crosswords but are on slips:
Board of directors a group of people elected by its shareholders to manage the company.
Memorandum of association/ articles of incorporation - is a constitutional document of a
registered company that must be drawn up by the person(s) wishing to set it up.
Articles of association – regulations for the management of registered companies. They form,
together with the provisions of the memorandum of association, the company´s constitution.
termination/dissolution of a company – means dissolving of a registered company, which can be
achieved by winding – up or by the Registrar of Companies striking it off the companies register as
defunct.
Insider trading or insider dealing – taking advantage of specific unpublished price-sensitive
information to deal in securities to make a profit or avoid a loss.
Created by the team of authors.
7. Vocabulary work – definitions (HW 1 do odpovědníků)
Complete the following naming definitions: 1. An owner of a business and a self-employed person such as a grocer, plumber, or taxi driver who directs the affairs of the enterprise, bears its risks and losses, and takes the profits and benefits is called ....................................... 2.Responsibility for the consequences of one's acts or omissions which is enforceable by civil remedy (damages) or criminal punishment is called ...................................... 3. A type of business organization in which two or more individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of their agreement is called ....................................... 4. A voluntary association which is formed and organized to carry on a business is called ........................................... 5. An individual, group, or organization that owns one or more shares in a company, and in whose name the share certificate is issued is called .............................., (in the US) ........................................... 6. A type of company that offers limited liability, or legal protection for its shareholders but that places certain restrictions on its ownership is called .............................................. 7. A company whose securities are traded on a stock exchange and can be bought and sold by anyone is called ............................. 8. A place where shares are bought and sold, i.e. a stock exchange is called ............................. 9. Organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply is called ............................................ 10. An enterprise which is controlled by another (called the parent) through the ownership of greater than 50 percent of its voting stock is called ........................................ 11. A firm that is registered or incorporated outside the country where it has its main offices and operations, or where its principal investors reside is called ........................................... 12.Assumption of control of another (usually smaller) firm through purchase of 51 percent or more of its voting shares or stock is called ........................................... 13.A contractor, supplier, or vendor who responds to an invitation to make a proposal and who is also called offeror or quoter is called ....................................... 14.A promissory note or a corporate bond which (in the US) is backed generally only by the reputation and integrity of the borrower and (in the UK) by the borrower's specific assets is called ...................................... 15.A share of the after-tax profit of a company which is distributed to its shareholders according to the number and class of shares held by them is called .................................
16.The legal address of a firm that is entered in the official register of the registrar of companies, and to which all government and court communication is addressed is called ............................................... 17.A document that regulates a company's external activities and must be drawn up on the formation of a registered or incorporated company is called .................................................... 18.The internal rule book that every incorporated organization must have and work by is called ............................................ 19.Registered firm's 'birth document' showing its legal name and date of registration is called ..................................................... 20.Buying or selling the securities of a publicly traded firm by a person who (by virtue of his or her employment or other close association) benefits from privileged information which is commonly restricted or prohibited by law is called ................................................. 21.A licensed agent who has to pass certain qualifying tests to be certified to offer securities investment advice to investors is called ............................................ 22.The end of the independent existence of a firm which can be brought about by consolidation or merger, creditors, government, or the stockholders (shareholders) is called ................................................. 23.A method of dissolving a business by selling off its assets and satisfying the creditors from the proceeds of the sale is called ........................................................ 24.Legal procedure for liquidating a business (or property owned by an individual) which cannot fully pay its debts out of its current assets is called .................................................... 25.The situation where the liabilities of a person or firm exceed its assets and the situation where an entity cannot raise enough cash to meet its obligations, or to pay debts as they become due for payment is called ...............................
Key:
1. An owner of a business and a self-employed person such as a grocer, plumber, or taxi driver who
directs the affairs
of the enterprise, bears its risks and losses, and takes the profits and benefits is called
.......................................
sole trader
2. Responsibility for the consequences of one's acts or omissions which is enforceable by civil remedy
(damages) or
criminal punishment is called......................................
liability
3. A type of business organization in which two or more individuals pool money, skills, and other
resources, and share
profit and loss in accordance with terms of their agreement is called .......................................
partnership
4. A voluntary association which is formed and organized to carry on a business is called
company
5. An individual, group, or organization that owns one or more shares in a company, and in whose
name the
share certificate is issued is called .............................., (in the US) ...........................................
shareholder
stockholder
6. A type of company that offers limited liability, or legal protection for its shareholders but that places
certain
restrictions on its ownership is called ..............................................
private limited company
7. A company whose securities are traded on a stock exchange and can be bought and sold by anyone
is
called .............................
public limited company
8. A place where shares are bought and sold, i.e. a stock exchange is called ....................................
stock market
9. Organized and regulated financial market where securities (bonds, notes, shares) are bought and
sold at prices
governed by the forces of demand and supply iws called ............................................
Stock Exchange
10. An enterprise which is controlled by another (called the parent) through the ownership of greater
than 50 percent
of its voting stock is called ........................................
subsidiary
11. A firm that is registered or incorporated outside the country where it has its main offices and
operations, or where
its principal investors reside is called ...........................................
off-shore company
12. Assumption of control of another (usually smaller) firm through purchase of 51 percent or more of
its voting shares
or stock is called ...........................................
takeover
13. A contractor, supplier, or vendor who responds to an invitation to make a proposal and who is also
called offeror or
quoter is called .......................................
bidder
14. A promissory note or a corporate bond which (in the US) is backed generally only by the reputation
and integrity of
the borrower and (in the UK) by the borrower's specific assets is called ......................................
debenture
15. A share of the after-tax profit of a company which is distributed to its shareholders according to
the number and
class of shares held by them is called ..................................
dividend
16. The legal address of a firm that is entered in the official register of the registrar of companies, and
to which all
government and court communication is addressed is called ...............................................
registered office
17. A document that regulates a company's external activities and must be drawn up on the formation
of a registered
or incorporated company is called .......................................................
memorandum of association
18 The internal rule book that every incorporated organization must have and work by is
called ............................................
articles of association
19. Registered firm's 'birth document' showing its legal name and date of registration is
called .....................................................
certificate of incorporation
20. Buying or selling the securities of a publicly traded firm by a person who (by virtue of his or her
employment
or other close association) benefits from privileged information which is commonly restricted or
prohibited by law is
called .................................................
insider trading/dealing
21. A licensed agent who has to pass certain qualifying tests to be certified to offer securities
investment advice to
investors is called ............................................
stockbroker
22. The end of the independent existence of a firm which can be brought about by consolidation or
merger, creditors,
government, or the stockholders (shareholders) is called .................................................
termination – dissolution
23. A method of dissolving a business by selling off its assets and satisfying the creditors from the
proceeds of the sale
is called ........................................................
winding up – liquidation
24. Legal procedure for liquidating a business (or property owned by an individual) which cannot fully
pay its debts out
of its current assets is called ....................................................
bankruptcy
25. The situation where the liabilities of a person or firm exceed its assets and the situation where an
entity cannot raise enough cash to meet its obligations, or to pay debts as they become due for
payment is
called ...............................
insolvency
http://www.businessdictionary.com
Homework 2 (do odpovědníků)
Read the following extract about the new regulations in running a business.
For each gap 1-, use the words in CAPITALS to form one word that fits in the
same numbered gap in the text.
Text:
As of January 1, 2014 the Czech (0)....Commercial..... Code,
Act No. 513/1991 Coll., will (1)........................... to exist;
some areas which are (2)............................ regulated by
the former Czech Commercial Code will newly be governed
by the new Czech Civil Code, Act. No. 89/2012 Coll., while
a) The teacher reads out 9 definitions, students write the terms into the table. The winner is a
student who has 3 definitions in a diagonal row.
b) The teacher reads 9 terms, students write them into the table, definitions are provided by the
students in class and then the teacher shows the table. The winner has three words selected by
a teacher in a diagonal row.
Expressions:
- To issue debentures: vydávat dluhopisy – an act of issuing/printing and selling documents that
contait the terms of a loan to a company
- A register of companies: obchodní rejstřík – an institution where companies are incorporated
- A general meeting: valná hromada – a meeting of company members whose decision can bind
the company
- board of directors: představenstvo společnosti/správní rada akciové společnosti– a group of
people elected by its shareholders to manage the companycertificate of incorporation, loan is
secured, , bylaws, Stock Exchange,
- limited liability: omezené ručení – a state in which there are limits as to the liability of a
company
- Shareholder: akcionář, držitel akcií – an individual, group, or organization that owns one or
more shares in a company, and in whose name the share certificate is issued
- to go bankrupt: zbankrotovat – a situation of a company in which it is not possible to pay the
company´s debts
- to incorporate: zapsat obchodní společnost do obchodního rejstříku – to form an association
that has corporate personality, i.e. a personality distinct from those of its members
- assets and liabilities: majetek a dluhy společnosti – everything the company owns and a sum of
money the company owes
To issue debentures
Register of companies
Board of directors
Shareholder
Limited liability To go bankrupt
Assets and liabilities
To incorporate General meeting
Další výrazy, které lze procvičovat:
- Tax liabilities: povinnost platit daně/daňové povinnosti – a legal duty or obligation to pay taxes
- set up a business: založit obchodní společnost – to found a voluntary association which is
formed and organized to carry out a business
- legal person: právnická osoba – an entity, such as a corporation, that is recognized as having
legal personality
- objects clause: předmět podnikání – it states the purpose (s) for which the company has been
formed
- Insolvency: insolvence – the situation where the liabilities of a person or firm exceed its assets
and the situation where an entity cannot raise enough cash to meet its obligations, or to pay
debts as they become due for payment
- bankruptcy: bankrot – a proceeding that may/can lead to winding up
- company/corporation: obchodní společnost – a voluntary association which is formed and
organized to carry on a business
Created by the team of authors.
9. If there was not enough time to practise definitions (either with slips or with crossword, this activity
can be done at the beginning of the second session on Running a business.
10. Reading comprehension
Read the text about the Czech company law and then translate selected terms into Czech. Read the text about the Czech company law and then translate selected terms from English into Czech and from Czech into English. This is an example of an exam practice task. As of January 1, 2014 the Czech (1) Commercial Code, Act No. 513/1991 Coll., (2) ceased to exist.The Czech company law is currently governed by three acts. They are: 1. The New Czech Civil Code, Act No. 89/2012 Coll.; 2. The new Czech (3) Act on Business Corporations, Act No. 90/2012 Coll. 3. Act No. 304/2013 Coll., on public registers of (4) legal entities and individuals. The New Czech Civil Code regulates general part of commercial and company law: (5) obchodní tajemství; (6) power of attorney; companies in general; most types of contracts; (7) nekalá soutěž, etc. Business corporation Business corporation is a new term used in company law. It is a type of legal entity. This term covers all commercial companies and cooperatives. Legal entities are defined in the new Civil Code. In the context of corporate law, it is a certain structure, through which people conduct their business. A. Commercial companies Commercial companies can be divided into two groups, personal companies and capital companies. (8) Základní ustanovení: Commercial companies are founded by a document called Memorandum of Association. The content of the
1. Obchodní zákoník
2. Přestal existovat/
zanikl 3. Zákon o
obchodních společnostech
4. Právnické osoby
5. Trade secrets
6. Plná moc
7. Unfair competition
8. General
Memorandum of Association is prescribed by law and varies according to the type of company. Commercial companies are entered in (9) the Commercial Register. Personal companies include entities in which all members are fully liable (veřejná obchodní společnost – usually translated as unlimited company), entities where only some members are fully liable (komanditní společnost – usually translated as limited partnership), and European Economic Interest Grouping (EEIG). Capital companies include: *(10) společnost s ručením omezeným, when all members are liable jointly and severally to the sum of all of the unpaid contributions registered in the Commercial Register. The liability is therefore limited and exists until all deposits are fully paid. Shareholders may have different (11) rights and obligations. *(12) Akciová společnost which is one of the most complex companies whose share capital (min. 2,000,000 CZK or 80,000 EUR) is divided into shares of a (13) nominal value. Shares can be traded publicly on the (14) stock exchange. Unlike other companies, the most important document is not the Memorandum of Association, but the Articles of Association (Bylaws). The main body is the Board of Directors and the Supervisory Board. The company must continuously publish reports on its management. * European company (Societas Europaea) is a joint stock company which is (15) incorporated under the laws of the European Union. B. Cooperatives The cooperative (housing, social, manufacturing, etc.) is defined in the Act as a non-restrictive community of people that is established for the purpose of (16) mutual support among its members or third parties, or for business purposes.
provisions
9. Obchodní rejstřík
10. Limited liability company
11. práva a
povinnosti
12. Joint Stock company
13. nominální hodnota
14. Burza
cenných papírů
15. Zapsána do obchodního rejstříku podle zákonů EU
16. Vzájemná podpora
Created by the team of authors.
Note: The term "firm" has several meanings. In business, there is another term used for business entity (company or corporation). Hovewer, in law, it means a corporate name of a business entity under which it is incorporated or registered in the Commercial Register. In order to succesfully pass the commercial law exam at your Faculty, we strongly recommend to use the latter meaning.
Key - Czech – original text
Czech company law Dne 1.1.2014 nabyla účinnosti nová rekodifiková právní úprava českého soukromého práva. S tímto pozbyl účinnosti obchodní zákoník, který upravoval právo obchodních společností. V současné době je právo obchodních společností upraveno v následujících právních předpisech:
1. Zákon č. 89/2012 Sb., občanský zákoník 2. Zákon č. 90/2012 Sb., o obchodních korporacích 3. Zákon č. 304/2013 Sb., o veřejných rejstřících právnických a fyzických
Nový občanský zákoník upravuje obecnou část obchodního práva a práva obchodních společností, a to otázky jako obchodní tajemství; prokura; obchodní firma; většina smluvních typů; nekalá soutěž. Nový zákon o obchodních korporacích obsahuje právní úpravu obchodních korporací (správu obchodních korporací) a družstev. Zákon upravuje mimo jiné založení a existenci obchodní společnosti; vklad a podíl; orgány obchodní korporace; vyloučení člena statutárního orgánu; podnikatelská uskupení (koncerny); zrušení obchodní společnosti. Obchodní korporace je termín, který zavedla nová právní úprava. Obchodní korporace je typem právnické osoby. Tento pojem zastřešuje všechny obchodní společnosti a družstva. Právnické osoby jsou definovány v novém občanském zákoníku. Jedná se o organizovaný útvar, o kterém zákon stanoví, že má právní osobnost (subjektivitu). V rámci korporátního práva se jedná o určité struktury, protřednictvím kterých lidé fungují v podnikání a realizují svou činnost. Obchodní společnosti je možné rozdělit do dvou skupin, na osobní společnosti a kapitálové společnosti. U osobních společností se předpokládá větší zapojení společníků do řízení a činnosti společnosti a současně i jejich osobní ručení za její dluhy. Mezi osobní společnosti patří komanditní společnost, veřejná obchodní společnost a Evropské hospodářské zájmové sdružení. U kapitálových společností se předpokládá větší míra profesionality a menší nebo dokonce žádné osobní ručení společníků. Mezi kapitálové společnosti zařazujeme společnost s ručením omezeným, akciovou společnost a Evropskou společnost. Pod pojem družstvo se zahrnují Evropská družstevní společnost a družstva. Obecná ustanovení Obchodní společnosti se zakládají společenskou smlouvou. Obsah společenské smlouvy vyplývá ze zákona a liší podle druhu společnosti. Obchodní společnosti se zapisují do obchodního rejstříku. Stručná charakteristika osobních společností Veřejná obchodní společnost jako osobní společnost se vyznačuje tím, že v ní podnikají minimálně dvě osoby a za své závazky ruší celým svým majetkem, a to společně a nerozdílně. Zisk i ztráta se dělí rovným dílem mezi všechny společníky. Veřejnou obchodní společnost mohou založit jak právnické, tak fyzické osoby. Pokud je společníkem právnická osoba, vykonává společnická práva a povinnosti jí pověřený zmocněnec, a tím může být jen fyzická osoba. Komanditní společnost je sice zařazena v zákoně mezi osobní obchodní společnosti, ale vykazuje některé rysy kapitálové společnosti.
Komanditní společnost je společnost, v níž alespoň jeden společník ručí ta splnění jejích dluhů omezeně (komanditista) a alespoň jeden společník neomezeně (komplementář). Komanditista má vkladovou povinnost. Rozsah ručení je pak vázán na rozsah nesplaceného vkladu. Komanditní společnost bývá někdy nazývána „společnost smíšená“. Může být založena za účelem správy vlastního majetku nebo za účelem podnikání. Na její úpravu se podpůrně používají ustanovení o veřejné obchodní společnosti. Evropské hospodářské zájmové sdružení (EHZS) Evropské hospodářské zájmové sdružení je upraveno zvláštním zákonem a navazuje na nařízení EU. Cílem tohoto nařízení je podpora hospodářské spolupráce mezi evropskými podniky, především malými a středními, které by se chtěly podílet na projektech celoevropského rozměru.
Stručná charakteristika kapitálových společností
Společnost s ručením omezeným
Společnost s ručením omezeným je jednou z forem obchodních společností a zákonem je považována za společnost kapitálovou. Vykazuje však i některé rysy osobní společnosti.
Společnost s ručením omezeným je společnost, za splnění jejíchž dluhů ručí společníci společně a nerozdílně do výše souhrnu všech nesplacených částí vkladů podle stavu zapsaného v obchodním rejstříku. Ručení je tak časově omezené a existuje jen do okamžiku, kdy poslední ze společníků splní svou vkladovou povinnost. Společníci mohou mít různá práva a povinnosti.
Akciová společnost
Akciová společnost patří mezi nejsložitější obchodní společnosti. Akciová společnost je společnost, jejíž základní kapitál (2.000.000 CZK nebo 80.000 EUR) je rozvržen na akcie o určité jmenovité hodnotě. Podíly akcionářů jsou reprezentovány těmito cennými papíry, které mohou být veřejně obchodovatelné na burze.
Na rozdíl od ostatních obchodních společností není nejdůležitějším dokumentem společenská smlouva, ale tzv. stanovy. Akciová společnost je založena přijetím stanov. Jakmile jsou stanovy přijaty a dojde ke splnění vkladové povinnosti, je podán návrh na zápis do obchodního rejstříku.
Mezi orgány akciové společnosti patří představenstvo a dozorčí rada. Akciová společnost musí průběžně zveřejňovat zprávy o svém hospodaření.
Evropská společnost (ES)
Evropská společnost (Societas Europaea) je akciová společnost, která je založena podle práva Evropské unie.
Družstvo
Družstvo (bytové, sociální, výrobní a další) je v zákoně definováno jako společenství neuzavřeného počtu osob, které je založeno za účelem vzájemné podpory svých členů nebo třetích osob, případně za účelem podnikání.
Družstvo má minimálně tři členy. K založení družstva je nutná ustavující schůze. Ta přijímá stanovy, volí členy orgánů. Každý člen se podílí na základním kapitálu družstva svým členským vkladem.
Družstvo má tři základ orgány. Nejvyšším orgánem je členská schůze, která rozhoduje o hlavních věcech družstva. Statutárním orgánem je představenstvo, na kontrolní bázi pak funguje kontrolní komise.
Evropská družstevní společnost Hlavním účelem evropské družstevní společnosti je uspokojování potřeb jejích členů nebo rozvoj jejich hospodářských nebo sociálních činností nebo sociálních činností v souladu s vytýčenými zásadami.
3. Listening –
Lawyers are usually hired for setting up companies, while running them, for incorporating changes, for
mediation as well as for termination. They are supposed to be experts in drafting, discussing, reviewing and
finalizing documents of high importance. It Is useful to make checklists to ensure that nothing has been missed
out.
You will hear two lawyers discussing such a checklist. A senior lawyer gives guidance to a junior one and goes
through the list of actions which are to be taken and into what documents are to be filed.
Listen to the dialogue and tick the best option according to what you have heard.
Multiple choice:
1. Lawyers are discussing: a) raising the company´s capital. b) increasing the value of shares. c) planning a new company. d) working in a company. 2. A lawyer does NOT have to check: a) the Memorandum of Association. b) the date of a board meeting. c) the company´s share capital. d) the amount of the share capital increase. 3. The number of directors present at the board meeting is a) important. b) low. c) reasonable. d) increasing. 4. Before EGM takes place shareholders must a) know about it in advance. b) agree on a date. c) send a notice. d) prepare a checklist. 5. After both meetings the final step to be done is
a) filing all the documents. b) increasing the nominal capital. c) amending the Memorandum. d) meeting within 15 days. Based on: Krois-Lindner and TransLegal. International Legal English. CUP, 2006. p.53, listening2, i.e. 13
4. Reported Speech. A secretary overheard the conversation between Jack and Rob, and tells her boss about it. Put the verbs below in the correct gap in the correct form together with the words in brackets. The first one has been done for you:
stand for mean know be (2x) think
work have to (2x) want (2x) do take Jack asked Rob politely if 1 (he) __thought_________ he could help him with something. Jack reminded him that he 2 was working_ on the Longfellow case. Rob asked Jack what 3 (he) _wanted to know. Jack 4 had to admit that this 5 _was_ the first time he 6 _had done_ that kind of thing, and he 7 _didn´t want_ to forget anything. Rob told him about the checklists and what 8 _had to_ be done in which order. Jack said he already 9 _knew_about determining the amount of increase of share capital, but he didn’t know what 10 (a quorum) _was/meant_, and he wasn’t sure if EGM 11 _stood/stands for_ the extraordinary general meeting. Later, he also asked what 12 (“consent to short notice”) __meant/was . In the end he told Rob that he 13 (just) _would take_ a copy of the checklist straight away. Created by the team of authors.
5.Speaking. Pair work. Each student reads one text and retells the contents. Use reported speech where appropriate.
Text A
Finance Ministry will change the conditions for VAT taxpayers The law amendment should sanction the dishonest taxpayers and protect the honest ones as well as clean up the market. The Finance Ministry wants to change the law with validity since 1st January 2013 which gives to the entrepreneurs the possibility to gain information about the so-called unreliable VAT taxpayer. If a company is doing business with such a partner it could be held responsible for his paying the value added tax. The Czech public showed no understanding for such a tax adjustment and declared the law amendment absurdity of the year 2013. The conditions for a subject to become an unreliable VAT taxpayer were so severe that today there are only 126 juristic persons and corporations with this status. To the new criteria suggested by the Finance ministry belongs, for example, a lower limit of three-month cumulative back tax (500 000 CZK or 18 000 euros, the limit for 2013 was 10 million CZK or 360 000 euros), impossibility to contact the taxpayer or, since 1st October 2015, a false statement concerning the address of the company’s head office. The Finance Ministry hopes that, due to the new criteria, the number of unreliable VAT taxpayers will rise to 3 to 5 thousand. Czech Business News, 24/8/2014
Text B
Obama announces US crackdown on inversion tax 'loophole'
The White House has announced a crackdown on tax avoidance deals known as inversions.
The practice involves a US firm merging with a firm in a country with a lower tax rate and has become popular over recent years.
But President Barack Obama said, “ New treasury department measures will make inversions less attractive”.
Those include making it more difficult for an inverted company to access money made outside the US.
One way inverted companies do that is by making loans between foreign units and the US business.
The benefits of so called hopscotch loans will be removed, according to today's announcement from the US Department of the Treasury.
The treasury department is also strengthening the requirement that the US owners of the new inverted firm have to earn less than 80% of the new entity.
It says that will mean some inversion deals "no longer make economic sense".
"We've recently seen a few large corporations announce plans to exploit this loophole, undercutting businesses that act responsibly and leaving the middle class to pay the bill, and I'm glad that [Treasury Secretary Jack Lew] is exploring additional actions to help reverse this trend," the president said in a statement.
In a recent inversion deal, Burger King bought Canadian coffee and doughnut chain, Tim Hortons.
Under the deal the new group moved its headquarters to Ontario, Canada, where the corporate tax rate is 26.5% - much less than the US rate of 35%.
http://www.bbc.com/news/business-29320029
6.Homework: Speaking Your law firm, which you work for, is compiling a list of successful companies as an example of good practices in the Czech Republic. In groups choose a successful company in the Czech Republic. Summarize briefly the type of business organization and get ready for a mini-presentation at the beginning of the next session. The informative mini-presentation should last 2 – 3 minutes. Created by the team of authors.
Running a Business - Key
Week 3
1. Homework check: Speaking
In groups, present successful companies in the Czech Republic. Focus on the type of business organization and the reason why they are successful. Each group has 2 – 3 minutes.
Students present in groups successful companies in the Czech Republic. They focus on the type of
business organization and the reason why they were successful. Each presentation should last only 3
minutes.
6 – 7 groups, i.e. 20 minutes
2.Group work – brainstorming and negotiation You work for an international law firm in Prague and you have been assigned the task of organizing a seminar on business law for the firm employees. Discuss the areas in which your staff need training and select the most relevant. Agree on the topic, length, why it is needed etc.
Notes: TOPIC: REASONS: WHEN (DATE & TIME): PLACE: ACTION/DEADLINE: ANY OTHER DETAILS:
Created by the team of authors. 3.Writing – Memos The word “memorandum” (or a memo) means something that should be remembered or kept in mind. It serves to circulate information, it can inform a group of people about a specific issue (an event, policy, resource, ...), or to provide a brief opinion or a report.
Students work in groups of three or pairs, after approx. 5 – 7 mins. the teacher asks for an example or two. Based on the negotiations from the previous exercise, fill in the details of the forthcoming training:
Dear all,
Let me inform you that our law firm continues in the in-company training programme. We have arranged for an interesting seminar on ……………………………………… (TOPIC).
The seminar will be held at ………………………………….. (PLACE) on ………………………… (DATE & TIME) and it will be run by an experienced lecturer, Mr John Cooper. We would strongly advise that all of the firm members attend this event because ………………………………………… (REASONS). Naturally, it may be necessary to reschedule your meetings and other activities so that you can participate in the seminar, but I firmly believe that nobody can afford to miss this seminar. I sincerely hope that all of you welcome this opportunity to improve your expertise and thus ability to serve our clients and I recommend you fully consider this opportunity. The management of the firm deeply supports your participation.
Please let me know ……………………………………….. (ACTION/DEADLINE, BY WHEN, HOW) whether you can attend.
I look forward to your response. Sincerely, Anna Nováková
Created by the team of authors. 4.Memos - structure Informative memos as well as proposal/persuasive memos have to be well structured and they usually include the following elements:
1. Reason for writing 2. Description 3. Proposal 4. Benefit 5. Call for action
Identify the elements in the memo above and underline useful expressions (sentence openers, phrases, …). Created by the team of authors. 5.Language focus
a) Underline the five adverb-verb collocations in the text: b) Match the verbs in the box with the adverbs to make all possible collocations.
Based on: CHIEF EDITOR, Colin McIntosh a Ben Francis EDITORS. Oxford collocations dictionary: for students of English. 2nd ed. Oxford: Oxford University Press, 2009. ISBN 0194325385.
c) As a preparation for writing a formal memo, do the following exercise. Match the formal verbs
(1-9) with their more informal counterparts (a-i)
1. assist a. get
2. commence b. ask
3. cease c. help
4. endeavour d. try
5. enquire e. stop
6. ensure f. tell
7. inform g. start
8. peruse h. guarantee
9. receive i. look through
1.c) assist - help
2.g) commence - start
3.e)cease - stop
4. d) endeavour - try
5. b) enquire - ask
6.h) ensure - guarantee
7.f) inform - tell
8.i)peruse - look through
9.a)receive - get
POZOR: to ensure je formal
Based on: CHIEF EDITOR, Colin McIntosh a Ben Francis EDITORS. Oxford collocations dictionary: for students of English. 2nd ed. Oxford: Oxford University Press, 2009. ISBN 0194325385.
6.Compulsory Assignment (credit requirement) Write a formal memo to your colleagues about a seminar on the New Civil Code in the Czech Republic which will take place on 3 November at the Faculty of Law, Masaryk University, Veveří 70, Brno. Include the following points:
reasons for writing benefits of the training seminar is expensive, our law firm offered to pay number of participants is limited, react immediately
Use an appropriate style (formality, choice of words, legal terms). Write 150 - 200 words. For your reference:
Useful sentence openers As you already know … You may be aware that … Considering the fact that … We would like to invite you to … It may be necessary to … It would be useful to … Should anyone have any questions, … /If anyone has any questions, please contact me. Please let me know by ... I look forward to hearing from you ... Yours sincerely.
Created by the team of authors. 7. Language focus – exam practice Read the first part of an article about company meetings. For each question 1 – 6, choose the best word or phrase to fill each gap from A, B, C or D below. TIP:
Make sure that your choice of word collocates with the word coming before or after the gap. Sometimes you need to look beyond the words immediately following the gap to find a clue. Always read through the whole sentence.
Board meetings The articles of a company will (1) ……………….. the management of the company to its board of directors. The board will act collectively, meeting regularly to consider and decide (2) ……………….. affecting the company. How those board meetings are (3) ……………….. is a matter (4) ………………… for the articles and for the board itself to decide. Unlike shareholders´ meetings, which are more tightly regulated, board meetings are generally (5) ……………….. of legislative interference. So there is nothing in statute about the notice to be given for board meetings. Any director or the secretary can call a board meeting and, unless the articles or a previous board meeting have stipulated the length of notice to be given, the only (6) ……………. ……………….. is that it be reasonable.
What is reasonable will depend on the type of company and its past practice. For a private company where all directors are already on site, reasonable notice may be a few hours or even minutes; for a large international company with directors scattered over responsibilities, board meetings will be fixed a year or more in (7) ………………… Again, unless the articles or a board resolution say anything to the contrary, the notice can be written or oral and need not detail an agenda for the meeting.
1 A pass B deliver C delegate D convert 2 A ideas B issues C problems D influences 3 A done B made C used D run 4 A largely B mostly C preferably D importantly 5 A absent B unrestricted C free D closed 6 A need B restriction C requirement D demand 7 A advance B future C anticipation D ahead
Notice All shareholders are entitled to receive written notice of a meeting unless the articles say (8) ……………….. ( a smaller company´s articles may often state that notice is only to be given to those shareholders who have provided a UK address to the company). In (9) ……………….., notice of a general meeting must also be given to each director, (10) ………………. a shareholder or not and to the auditors – a point that can often be missed. The articles will state how notice can be given to shareholders, and it is important that their provisions are followed: failure to do so can (11) ……………….. the notice, the meeting and the resolutions passed at it. Legislations introduced in 2000 allows notices to be sent electronically (by email or fax) if a shareholder is in (12) ………………. . Since January 2007, a company has also been able to use a website. Documents and information to be sent to shareholders can be posted on a website if a shareholder resolution allowing this has been passed ( or the articles permit it). Shareholders can (13) ……………….. out and still require hard copies through the post. In any event, each time a document is put on the website, shareholders must be told, usually by hard-copy letter.
8 A alternatively B opposite C otherwise D different 9 A extra B end C advance D addition 10 A if B whether C maybe D conditionally 11 A negate B illegalize C invalidate D deny 12 A acceptance B agreement C understanding D accord 13 A choose B make C opt D go
Adapted from: EDWARDS, Helen Callanan and Lynda. Absolute legal English: [English for international law : ideal for Cambridge ILEC preparation]. 1. publ. Peaslake: Delta Publ, 2010. ISBN 1905085516. 8. Listening. You will hear five short extracts in which lawyers are talking to clients who are directors of companies. You will hear the recording twice.
TASK 1 Listen carefully and choose from the list A-F what each director wants to do.
A leave the board for reasons of ill health B set up a new company C continue in his position D remove the Company Secretary E get involved in another business F continue a business arrangement after leaving a company
Answers:
1 E
2 A
3 C
4 F
5 B
TASK 2 Now decide about the function of directors’ speech and choose from the list A-F what each director wants to do.
A offering reassurance B reminding C changing opinion D regretting E offering an alternative F agreeing with a plan of action
Answers: 1 E
2 F
3 A
4 D
5 B
Adapted from: EDWARDS, Helen Callanan and Lynda. Absolute legal English: [English for international law : ideal for Cambridge ILEC preparation]. 1. publ. Peaslake: Delta Publ, 2010. ISBN 1905085516.
Additional exercise – if time:
2. Language focus – exam practice. Writing
You have been working for a law firm but you are leaving the company in one month. You are
informing your colleague who is taking on your agenda on one of your cases. Your client wants
to form a partnership with two colleagues.
Write a memorandum to your colleague. Your memorandum should include a checklist of things
you have done for one of your clients. Prepare a scenario before you write a memo.
Explain why you have advised forming a partnership rather than a company
Describe the advice you have given your client on the obligations and liabilities of the
partners
Outline what action you have taken to set up the partnership
Outline the next steps to take.
Write your answer in 150 – 200 words. Created by the team of authors.
