Introduction RUNNING A BUSINESS English for Lawyers I.3 Autumn 2013 Syllabus • Running a business ▫ organization - types of companies, internal management, raising capital, termination of business • Family law ▫ nullification of marriage, divorce, rights of succession, protection of children • Law and consumers ▫ contracts between goods and services suppliers and consumers, exemption clauses, product liability • Employment law ▫ employment rights, EU employment law • Intellectual property ▫ patents, copyrights, trademarks, trade secrets, infringing copyright Study materials COMPULSORY • Interactive syllabi, study materials ▫ Skupiny MSme • Chromá, Marta. New introduction to legal English. Volume I. Univerzita Karlova, 2007 • Chromá, Marta. New introduction to legal English. Volume II. Univerzita Karlova, 2007 • Chromá, Marta. English-Czech law dictionary. Leda, 1997. • Chromá, Marta. Czech -English law dictionary. Leda, 2001. • Powell, Richard. Law today. 1. ed. Harlow : Longman, 1993 Study materials OPTIONAL • Powell, Richard. Law today. 1. ed. Harlow : Longman, 1993 • Krois-Lindner, Amy – Firth, Matt. Introduction to International Legal English. CUP, 2008. • Black, Henry Campbell. Blackův právnický slovník. Praha : Victoria Publishing, 1993 • Online dictionaries Requirements 0 Attendance 0 1 unexcused absence 0 1 excused absence 0 Active participation in class 0 Credit test 0 10.12.2013 0 70% correct (max. 59 pts, pass: 41.5+ pts) 0 10 translations Czech – English 0 10 translations English – Czech 0 3 definitions of legal terms 0 2 open questions 0 Bonus points 0 Hmm, I was was racking my brain over it… 0 presentations (discretionary) 0 homework (discretionary) 0 outstanding activity in seminars (discretionary) 0 100% attendance: + 3 points Failure to attend my own seminar… • can be made up for by appearing in a seminar taught by my teacher, i.e. ▫ Tuesday  13:30-15:00  15:05-16:30  16:40-18:10  18:15-19:45  always in room n. 315 • ONLY EXCEPTIONAL FAILURE!!! I reserve the right… • to add more requirements during the semester. • not to award the bonus points if I find that there is a reson for it. Revision • What have we coverd so far? 1. What is law? 2. Sources of modern law 3. Division of law 4. Judicial institutions 5. Lawyers at work 6. Contracts 7. Criminal law 8. Torts 9. Trusts 10. Land law Translate: Czech English 1. absolutně neplatná smlouva 2. pachatel trestného činu 3. pachatel občanskoprávního deliktu 4. zůstavitel a správce svěřeného majetku 5. objektivní odpovědnost 6. věcná práva k věci cizí 7. zatykač 8. vyhoštění a zákaz pobytu 9. zánik smlouvy splněním 10. pracovní smlouva, kupní smlouva a smlouva o smlouvě budoucí 1. void contract 2. criminal, perpetrator, offender, felon 3. tortfeasor 4. testator and trustee 5. liability without fault, strict liability 6. legal intersts 7. arrest warrant 8. banishment and prohibition of abode/stay/residence 9. discharge of a contract by performance 10. employment contract, bill of sale, and preliminary contract / letter of intent Running a business • What can you do for a living? • How is earning for a living affected by law? • How is running a business affected by law? Introduction to company law Session 2: RUNNING A BUSINESS English for Lawyers I.3 Autumn 2013 Powell U11: Find the equivalent Czech English začít podnikat set up a business prodávat služby sell services znalosti základních právních principů knowledge of basic legal principles podnikat, vést podnik run a business nezákonné nakládání s miliony dolarů improper handling millions of dollars sada zákonů set of laws čelit problémům face problems komplexní zákoník comprehensive code sjednotit dřívější zákony consolidate previous statutes Liabilty • = legal responsibility • Companies: ▫ limited (liabilty) company ▫ unlimited company Limited liability company (ltd.) • members have limited liabilty ▫ limited by shares  the limit is the amount unpaid on shares they hold ▫ limited by guarantee  the limit is the amount they have guaranteed to contribute to company assets • the company‘s liability itself is not limited • Video: Limited Liability Company (LLC) Public limited companies (PLC) • they získávat kapitál by selling shares to the general public, and these are listed on the burza cenných papírů • Video: Public Company Raising capital • selling shares • issuing debentures or bonds in return for loans ▫ entitled to an annual payment of interest ▫ they have the right to sell their debenture back to the company (call in their loan) or sell them to someone else Share • = ownership of a proportion of the company, and thus a right to a proportion of any profit it makes (dividend) ▫ Powell‘s words • Your words? ▫ share  Any of the equal parts into which the capital stock of a corporation or company is divided. ▫ dividend  A share of a surplus; a bonus. Shares (vocabulary) • vydávat akcie ▫ issue shares • nominální hodnota ▫ nominal value • prodat se ziskem ▫ sell at a premium • prodat se ztrátou ▫ sell at a loss / a discount Forms of business • Individual proprietorship ▫ a form of business ownership in which one fyzická osoba owns a business and may buď be the sole worker or may zaměstnávat as many individuals as needed to podnikat ▫ Advantages ▫ Disadvantages Forms of business • Partnership ▫ involves the pooling of capital zdroje and the business or professional talents of two or more individuals with the goal of dosažení zisku ▫ does not exist in the Czech law ▫ Anglo-American: law firms, medical associates,… ▫ Advantages ▫ Disadvantages Give synonyms • to conduct a business • to keep in a business • to function as a partnership • to run a business • to retain in a business • to operate as a partnership Forms of business • Corporation ▫ What is the primary reason of the existence of a corporation?  Making a profit ▫ Creation of corporations requires a corporate structure consisting of  shareholders (owners of the business),  elect a board of directors  directors (responsible for the management of the business),  officers (the agents of the business)  employed by directors  run the day-to-day operations of the business Corporations - ADVANTAGES • The shareholder‘s risk of ztráta from the business is omezená na the amount of capital the shareholder invested in the business. • A corporation is a samostatná právnická osoba capable of holding property, contracting, žalovat, and být žalovaná in its own name. • The death of a shareholder has no právní důsledek on the entity. (x partnership) • Separate taxable entity. Corporations - DISADVANTAGES • A corporation is required to pay daň z příjmu právnických osob. • Shareholders, when they receive a distribution of profits for the corporation, are required to pay daň z příjmu fyzických osob (a form of double taxation). • Expenditure of funds for organizational and provozní výdaje. Explain / Define: • Shareholder(s) • Double taxation • A board (of directors) • Operational expenses Corporations • The process by which a company/corporation is formed is called incorporation. • What are the consequences? ▫ A corporation becomes a separate legal entity distinct from its members. ▫ The property of the corporation is owned by the corporation (not by the persons). • Declaration of compliance • Certificate of incorporation Corporations • Promoter ▫ The person who developed the idea of forming a corporation and who induce others to join in the enterprise. ▫ (profesionální) zakladatel obchodní společnosti • Incorporator ▫ The person who make the application for the certificate of incorporation. ▫ zakladatel, zakládající člen. Společenská smlouva • GB: Memorandum of Association • US: Articles of Incorporation Definition? = a legal document describing a new company • What does it contain? ▫ primarily concerned with regulation and outward appearance of the company in respect of its dealings with third parties  the company  its objects (the objects clause)  whether it is limited by shares or guarantee  the amount of share capital  … Where are the articles / the memorandum filed? • They are filed with a registrar at the registry in a register. I know, I know…  • Registrar ▫ an official keeper of records made in a register. • Register ▫ a book / list in which records of acts, events, names, etc., are kept. • Registry ▫ a place where a register is kept; an office of registration. CZ • s. r. o. ▫ limited liability company • a. s. ▫ joint stock company ▫ US: stock corporation ▫ GB: public limited company • k. s. ▫ limited partnership company • v. o. s. ▫ unlimited (liability) company Translate • Společnost vzniká zápisem do obchodního rejstříku. • ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ . • T___ l___ e___ o___ a c___ s___ c___ u___ t___ r___ t___ i___ t___ C___ R ___. • The legal existence of a company shall commence upon the registration thereof in the Commercial Register. Objects clause of the memorandum • a part of a company's memorandum of association that states the aims of the company and the powers of the company directors ▫ The amendment of any provision in the objects clause requires a prior written consent. • = ustanovení o předmětu podnikání • Why is it important? ▫ activities ultra vires (= outside its capacity)  When a company engages in activity beyond it registered objects. Ultra vires • [ˈvaɪriːz] • beyond the legal power or authority of a person, corporation, agent, etc. • Video Stanovy • Articles of association (GB) • Bylaws (US) • What do they deal with? ▫ primarily concerned with internal affairs of the company  at what notice meetings must be held  voting rights  size of majority  appointment, powers, and removal of directors  … Insider trading • = the illegal buying or selling of securities on the basis of information that is unavailable to the public. ▫ nedovolené obchodování akciemi prováděné zaměstnanci na základě důvěrných informací o firmě Dissolution & Termination • How can a company be dissolved? ▫ its registration may be cancelled ▫ removed from the register (Commercial Register) ▫ it may be liquidated (wound up)  compulsory (enforced) liquidation  going bankrupt  voluntary liquidation • CZ: Expungement of the record of a company from the Commercial Register (termination of the legal existence of a company) Life of a company • Formation • Incorporation • Dissolution • Termination Listening: Forming a business in the UK Company law References • http://dictionary.cambridge.org/dictionary/busines s-english • http://www.thefreedictionary.com • Chromá, Marta. English-Czech law dictionary. Leda, 1997. • Chromá, Marta. Czech -English law dictionary. Leda, 2001. • Chromá, M. New Introduction to Legal English Volume II. Praha : Nakladatelství Karolinum, 2003.554 p. • Powell, R. Law Today. Longman Group UK Limited, 1993. 128p.