COMPANY LAW 1

5.1. Are the following statements true or false? Find reason for your answers in A and B opposite.

1. In case of a legal dispute, people can take a company’s shareholders to court ( T)

• 
  
  A company has separate legal existence from its owners. It con enter in to contract and con be sued or taken to court.

2. The owners of limited companies have to pay all the company’s debts(F)

• 
  
  A company has separate legal existence from its owners.

3. Many companies are not owned by their managers (T)

• 
  
  Managers run the company for its owners sometimes.

4. External directors can usually give more objective than full-time directors (T)

• 
  
  Non - executive directors are often more objective: less influenced by their opinions and beliefs.

5. Partners in British and American businesses are not liable for the partnership’s debts. ( F ).

• 
  
  The partner are fully liable or responsible for any debt the business has.

6. In case of a dispute, people can take British companies and partnerships to court (F).

• 
  
  Because they are not legal entities In case of a legal is the induvidual partner and not the partnership that is talked to court.

5.2. Make word combinations using a word from each box. Then match the word combinations to the definitions below. Look at A opposite to help you.

Corporate                                                Committee
Audit                                                        Directors
Limited                                                     Governance
Non-executive                                          Capital
Share                                                        Liability

1. Audit Committee: a group of directors to whom the external auditors present their report.

2. Non-executive directors: members of a board of directors who are not full-time managers of the company.

3. share capital: owners`money invested in a company.

4. limited liability: responsibility for debts up to the value of the company’s share capital.

5. corporate governance: the way a company is managed for its owners.



5.3. Complete the document. Look at C opposite to help you.


(a). Articles of Association.

1. The name of the Company is Language Services Pty Limited

2. The (b) location of the Company will be in Australia.

3. The (c) objective for which the Company is established is to provide translation and interpreting services to international companies.

4. The (d) authorized share capital of the company is made up of ordinary shares divided into five thousand (5.000) shares of A $ 1.00 par value each with one vote for each share.


BY... LUCIA ALCALA AND MARIA CABALLERO