4. Fill in the gaps with prepositions if necessary.

1. Our company is made ___ of three groups of people: shareholders, the management and the employees.

2. He invested money in the company and got shares ___ return.

3. The employees report ___ the heads of their departments about the production process, which they carry ___.

4. Our department is engaged ___ the marketing process.

5. The regulations for the company are set ___ in the constitutional documents.

6. The company entered ___ sale-purchase contract.

7. The director will remain ___ position, unless he is forced ___.

8. He stood ____ re-election and won.

9. Legal advisors act ___ behalf ___ their clients.

10. He was disqualified ____ acting as a company auditor.

11. The employers should comply ____ employment legislation.

12. His failure to perform his duties properly resulted ____ penalty.

13. The company was charged ____ a fine.

14. The auditors of the company were served ____ notice of a meeting.

5. Read the text and decide whether the statements are true (t) or false (f).

1. A Chief Executive Officer may be a member of the Board of directors.

2. A company secretary can also be a director of a company.

3. Company’s auditors are elected by the Board of Directors.

4. The registered name must be the same as the trading name.

5. A certificate of incorporation is issued by a state organ.

6. ‘Authorized share capital’ and ‘nominal capital’ are not synonyms.

7. The requirements for annual and extraordinary general meetings are set out in the Memorandum of Association.

8. People with beneficial ownership have the same rights as shareholders.

9. Directors are answerable to the shareholders.

10. Both executive and non-executive directors are employees of a company.

11. The Company Secretary is chosen by the shareholders.

12. It is the Company Secretary’s job to ensure that the company complies with legislation.

6. Chose the phrase which best completes each statement. Sometimes more than one variant is possible.

1. The shareholders of a company …

1. invest money in the company

2. get profit.

3. manage the affairs of the company.

4. control the affairs of the company.

2. The general meeting can appoint ….

1. company’s auditors.

2. the CEO.

3. a company secretary.

4. the Board of Directors.

3. If you want to incorporate you have to …..

1. apply for registration.

2. file the constitutional documents.

3. buy property for the company.

4. pay a filing fee.

4. The Memorandum of Association states ….

1. the Company’s purposes.

2. the amount of authorized share capital.

3. the liability of its members.

4. the provisions for internal management of the company.

5. The Articles of Association set out …

1. the location of the registered office.

2. the relationship between the company and its shareholders.

3. corporate contracts and loans.

4. regulations concerning directors’ powers and duties.

6. The power of directors is limited …

1. by law and the company’s constitution.

2. by annual general meeting.

3. by extraordinary general meeting.

2. by governmental authorities.

7. The duty of a Company Secretary is:

1. to deliver accounts to the Registrar of Companies.

2. to file the statutory forms.

3. to submit annual returns.

4. to provide notice of change of directors to the Registrar.

SPEAKING

You are a starting businessman. You are creating your own company.

1. Decide which goods or services you will provide.

2. Which type of company is it going to be?

3. Give a name to your company

4. Make a structure of the company.

5. Define duties for all departments and members.

6. Make a kind of presentation to your group mates, telling them about

your company.

ADDITIONAL READING