Insolvency problems

If a joint-stock company goes bankrupt and can not pay out its debts, then either the shareholders or the creditors are entitled to sell it out. But first of all a liquidation committee is formed to regulate the process of winding up. In case of a voluntary liquidation the commission is appointed by the shareholders of the general meeting, but if the winding-up is compulsory then a court, in majority cases an arbitration must appoint this committee to solve the problem.

II. Match the equivalents:

1. Apply for registration	a) Акционерное общество
2. Articles of association	b) Государственная компания
3. Bind (v)	c) Добровольная ликвидация
4. Capital	d) Капитал
5. Clause	e) Ликвидационная комиссия
6. Company’s authorized capital	f) Ликвидация
7. Company’s name	g) Название компании
8. Compulsory liquidation	h) Неплатежеспособность
9. Fixed nominal value	i) Нотариус
10.Insolvency	j) Обязывать
11. Joint-stock company	k) Официальный адрес правления компании
12. Legal person	l) Подать заявление на регистрацию
13. Legal structure of business	m) Подписчики (капитала)
14. Liquidation committee	n) Правовая организация бизнеса
15. Natural person	o) Принудительная ликвидация
16. Notary	p) Статья (договора)
17. Objects	q) Устав акционерного общества
18. Private company	r) Уставной капитал (фонд) компании
19. Public company	s) Установленная номинальная стоимость
20. Registered office	t) Физическое лицо
21. Subscribers	u) Цель (образования компании)
22. Voluntary liquidation	v) Частная компания
23. Winding-up	w) Юридическое лицо

III. Answer the following questions:

1. How many steps are there to be taken before starting your business?
2. What is a crucial step in the decisions you will have to make?
3. Why is it important to choose the legal form of your business?
4. Which is the most popular form of business?
5. What word must end a private company with?
6. What word must end a public company with?
7. What binds the company and its members?
8. What do the articles of association contain?
9. What should be done if a joint-stock company goes bankrupt?
10. What happens in a case of a voluntary liquidation?
11. What happens in a case of a compulsory liquidation?

IV. Match the following sentences (1-11) with the words or phrases (a-k) on the right:

1. The holder of these has lent the company money but has no voting rights	a) a subsidiary
2. A group of six accountants have decided to form an association to carry on business in common and make a profit	b) group
3. The investors give these people the power to run the company	c) non-profit making
4. This company holds more than 50% of the voting shares in another company	d) stock-exchange
5. Members of the public can only invest in this company if they are invited to do so.	e) partnership
6. Investments in many companies can be made by buying shares on this market	f) directors
7. The public can be shareholders in this company	g) private limited
8. The golf club was set up with the intention of not making a profit	h) debentures
9. Fifty-one percent of the voting shares of this company are held by another company	i) public limited
10. This is the meeting which is held once a year for the shareholders	j) holding company
This exists when several companies are in a relationship of owning and being owned	k) annual general meeting

V The process of developing a corporate plan goes through several stages. Put the items (a-i) below in the correct place on the corporate plan:

a) Setting corporate policies and deciding about where the organization wants to go in terms of performance and results.

b) Identifying opportunities and threats and analyzing the major strength and weaknesses of the organization.

c) Preparing action plans and setting targets for different departments.

d) Analyzing production facilities and personnel currently at work and analyzing current trading activities.

e) Agreeing on the strategies which the organization will adopt.

f) Considering the expectations of the employees, the customers and the shareholders.

g) Assessing possible future actions of competitors and studying economic forecasts and social trends.

h) Reviewing the economic, political and social factors which are affecting the organization.

i) Considering alternative strategies.

Developing	A corporate plan
Assessment stage:
- external environment	Analyzing raw materials, skilled labour and other resources which the organization can use and 1)…….
- organization	2)……..
- future	3)…….
- shareholders’ expectations	4)…….
Objective stage	5)………
Appraisal stage (SWOT)	6)………
Evaluation stage	7)………
Strategic plan	8)………
Operational planning	9)…….

VI.Translate into English:

1. Существует несколько видов правовой организации бизнеса, Но наиболее популярной является акционерное общество.

2. Акционерное общество может состоять из двух как физических, так и юридических лиц.

3. Акционерное общество в Великобритании должно составить два документа – меморандум и устав, которые должны содержать следующие пункты: название компании, официальный адрес правления, цели образования компании, ее уставной капитал и установленная номинальная цена акций.

4. В уставе акционерного общества отражаются основные положения, касающиеся Совета директоров и Правления.

5. Ликвидационная комиссия при добровольной ликвидации общества избирается Общим собранием в порядке, предусмотренным Уставом и Положением о ликвидационной комиссии.

6. При принудительной ликвидации Ликвидационная комиссия назначается судом (арбитражем).

7. Существует два основных вида акционерных компаний – частная и государственная.

8. В Уставе акционерного общества определяется состав совета директоров, правление, генеральный директор.

9. Совет директоров является доверенным лицом подписчиков капитала.

10. Совет директоров управляет организацией при помощи высшего исполнительного руководства.

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