Langues appliquées - Anglais : Economie, gestion, droit, AES - 4e - 94

manaGement

Instructions For Study
1. Turn to the definitions following the text Companies. They refer to the specialist terms
printed in bold type in the list of Useful words and concepts. Study them closely and
pinpoint them in the text.
2. Use an English language dictionary to check the meanings (in context) of the other words
in the list.
3. Do the exercises to improve language skills.

Companies
A company is set up to run a business. It has to be registered before it can start to operate, but
once all the paperwork is completed and approved the company becomes recognised as a legal body.
The owners of a company are its shareholders. However, other individuals and businesses do not deal
with the shareholders - they deal with 'the company'. Shareholders put funds into the company by
buying shares.
The promoter or directors of the company can apply to the Registrar of Companies for permission
to issue new shares. The amount that the Registrar agrees to is called the authorised capital. The
issued capital is the value of the shares that are actually sold to shareholders. A company may choose
not to issue the full value of its authorised capital: it may hold back a certain amount for future issue.
Shares can be issued for payment in stages over a period of time. Each stage is then termed a
'call'. There may be three or four calls before the full price is finally paid. The paid-up capital is the
money that has been received for these partly paid shares.
Private companies tend to be smaller than public ones and are often family businesses. There must
be at least two shareholders but there is no maximum number. Shares in private companies cannot be
traded on the Stock Exchange, and often shares can only be bought with the permission of the board
of directors. The board of directors is a committee set up to protect the interests of shareholders. The
members of the board choose the managing director, who is responsible for the day-to-day running of
the business. The rules of the business set out when shareholders' meetings will take place and the
rights of shareholders.
Private companies may find it possible to raise more cash (by selling shares) than unlimited-liability
businesses. The shareholders can also have the protection of limited liability. The main disadvantages
compared with unlimited-liability businesses are that they have to share out profits among shareholders
and they cannot make decisions so quickly. They cost more to set up.
A public company has its shares bought and sold on the Stock Exchange. Companies can go to
the expense of having a 'full quotation' on the Stock Exchange so that their share prices appear on
the dealers' visual display screens. The main advantage of selling shares through the Stock Exchange
is that large amounts of capital can be raised very quickly. One disadvantage is that the original
shareholders can lose control of the business if large quantities of shares are purchased as part of a
'takeover bid'. It is also costly to have shares quoted on the Stock Exchange.

Table des matières de la publication Langues appliquées - Anglais : Economie, gestion, droit, AES - 4e