A) Shareholders

The following texts should be completed with the appropriate words from each box.

Exercise 1. Activating the chart.

Corporations

Part I. Company Law (Corporate Law)

ДОПОЛНИТЕЛЬНЫЕ МАТЕРИАЛЫ

Сабабхои бархамдихии воситахои асоси.

Хоричкунии воситахои асоси.

Воситахои асоси аз руи кадом арзишашон бахисоб гирифта мешаванд.

Гурухбандии воситахои асоси.

Мавхуми воситахои асоси.

3 year

First review the matters and issues related to types of business organizations that were covered last year.

(АЯЮ стр. 76-85)

What kind of business entity is it?

How is it formed?

What are the major traits of a corporation?

Who does a corporation consist of?

Who bears the liability in case of company failure? What does limited liability mean?

Shareholders Shareholders own stock (called shares, or ownership interests) in the corporation. Shareholders have the exclusive right to make the following decisions: - elect and remove directors - amend the articles of incorporation and bylaws - approve the sale of all or substantially all of the corporate assets - approve reorganizations, and - dissolve the corporation. Shareholders are paid dividends out of the company’s profits.

Corporation owners are its shareholders. The shareholders own ….., or ……in the corporation. This ownership provides them with the most important right – the right to vote. Shareholders voting typically takes place at an annual meeting, when certain corporate decisions are made. For example, after incorporation at the first meeting they …. the directors who manage the corporation, and …...the bylaws of a corporation. Later, in the process of corporation development, the shareholders can ……. a director by voting at an annual meeting. The shareholders can also ……. the bylaws if some changes are necessary. No decision to sell corporate assets is possible to be made without shareholders. They must ….. such decisions as well as decisions to reorganize or ……… a corporation.

Shareholders are paid dividends out of the company’s profits

Directors The board of directors sets policy for the corporation and makes major financial decisions. Function of the Board is to do following: - set corporate philosophy and policy - select and appoint officers and managers to run company. - make major company decisions - pay dividends Among other things, the directors: - authorize the issuance of stock - elect the corporate officers - set officer and key employee salary amounts - decide whether to mortgage, sell, or lease real estate, and - approve loans to or from the corporation

Дата добавления: 2015-03-31