EXERCISES COMPANY LAW 1

EXERCISES COMPANY LAW 1

5.1  Are te following statements true or false? Find reasons for your answers in A an B opposite.

1. In case of a legal dispure, people can take a company’s shareholders to court.

  TRUE, a company is a legal entity and has a separate legal existence.

2. The owners of limired companies have to pay all te company’s debts.

         FALSE, the owners are not fully liable for the business’s debts.

3. Many companies are not owned by their managers.

       FALSE, the managers run the company for its owners.

4. External directors can usually give more objective advice than full-timme directors.

       FALSE, full time directors can give more advice.

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

       FALSE, partners are fully liable for debts.

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

       FALSE, the individual partners are taken to court

  

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

 

   Corporate                                       Committee

      Audit                                                     Directors 

       Limited                                            Governance 

Non-executive                                   Capita

  Share                                       Liability

1.Non-executive  directors: a group of directors to whom te external auditors present their report.

2.Audit  committee: members of a board of directors who are not full-time managers of te company.

3.Share  capital: owners money invested in a company.

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

Corporate  Governance: the way a company is managed for its owners.

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

(a)____________ of Association

1.The name of te company is Language Services Pty Limited. (Memorandum).

2.The Location of te Company will be in Australia.

3.The Companys purpose for which te Company is established is to provide translation and interpreting services to international companies.

4.The Authorized share capital of te company is made up of ordinary shares divided into five thousand (5.000) shares of A$1.00 par value cach with one vote.

 

Our group is conformed by:

• Angie Bibiana Calderon

• Diana Castillo Cuervo

• Diana Carolina Ruiz