5. The diagram shows who controls a public limited company. Use the terms in the box to complete it.

board of directors managers shareholders

a _____________ (owners of the company)

b _____________ (responsible to the shareholders)

c _____________ (appointed by the board to run the company)

6. Use the terms in the box to complete the paragraph.

board of directors board senior executives chief executive officer managing director company secretary chair

People at the head of an organization are __________________ or senior managers. The _____________ is the person who has overall responsibility for the day-to-day running of an organization. In the case of a limited company the CEO is normally the _____________, appointed by the _____________ on the authority of its members. The same person is usually the _____________ of meetings of the _____________, i.e. the people who are legally responsible for a company. The person responsible for keeping the minutes of board meetings is the ________________.

7. Which of the following people are likely to be on the board of directors of a company?

a) company secretary c) CEO e) executive directors

b) non-executive directors d) managers f) members of staff

8. Match each of the roles (1-4) to the correct definition (a-d).

1) director 2) executive director 3) non-executive director 4) board of directors

a) A company director with a seat on the board who is also a salaried employee of the company, and actively involved in the running of the company.

b) A director with a seat on the board who is not a working employee of the company, sometimes brought onto the board for his or her specialist knowledge. He or she takes no part in the running of the company.

c) The management committee of a limited company, the members of which are appointed by the shareholders whose interests they represent. They meet under the company chairman to decide on major policy matters and the appointment of key managers.

d) A person who is appointed an elected officer of the company at the annual general meeting (AGM) and manages the company on behalf of the shareholders. He or she acts by resolutions made at meetings of the board.

Word building

9. Complete each sentence with correct form of the word in capital letters. In some cases you will have to make a negative form.

direct

1. I enclose a map and ……………………. to help you to find our office.

2. The board of ………………… will make the final decision about the scheme.

3. I found the company by looking in the local trade ……………………..

4. I always deal ………………….. with the manufacturer.

5. There’s been another ………………….. from head office about photocopying.

Expense

1. It’s ……………….. to send the goods by air but they are urgently needed.

2. They offered her £15,000 plus …………………..

3. Unfortunately, ………………… on the project was much more than expected.

4. His ………………….. claims are being looked at by the Chief Accountant.

INFLATE

1. I’ve no intention of paying such …………………… prices!

2. At the moment ………………….. is running at 20%.

3. The government must take steps to halt the ……………………… spiral.

NEGOTIATE

1. The salary is ……………. So how much do you think I should ask for?

2. Unfortunately, …………………… with the union have broken down.

PROFIT

1. Any line which proved ………………… was immediately discontinued.

2. Couldn’t some workers be more ……………… employed in other departments?

3. Doubts have been expressed as to the ……………………. of the business.

EXTEND

1. We’ve decided to agree to their request for ………………….. credit.

2. Could I speak to Miss Charles, please? I think it’s ……………………38.

3. The factory was …………………. damaged in the fire.

4. To some ………………… I agree with her conclusions.

Language Development