Sum up the text and discuss with your partner the main differences between general partnership and the LLC, the most popular type of a company in the USA.

 

Limited Liability Company (LLC)

The LLC is a relatively new type of hybrid business structure that is now permissible in US. It is designed to provide the limited liability features of a corporation and the tax efficiency and operational flexibil­ity of a partnership. Formation of LLC is more complex and formal than that of a general partnership.

The owners are members, and the duration of the LLC is usually de­termined when the organization papers are filed. The time limit can be continued if desired by a vote of the members at expiry date (the time of expiration). LLC's must not have more than two of the four charac­teristics that define corporations:

1. Limited liability to the extent of assets;

2. Continuity of life;

3. Centralization of management; and

4. Free transferability of ownership interests.

 

Helpful Vocabulary

permissible – дозволенный

tax efficiency – налоговая эффективность

operational flexibility – гибкость операций

duration – срок действия

to file papers – подавать документы на регистра­цию

vote – голосование

expiry date – дата окончания

transferability – передача (имущества, права и т. п.)

4. Write a short essay on:

1. The purpose of a Board of Directors in a Corporation.

2. Major duties of a Board of Directors in a Corporation.

 

 

Directors and Managers

As a rule a private company has only one director. A public company must have at least two directors. Usually there is no upper limit on the number of directors a public company may have. The company's note-paper must list either all or none of the names of its directors.

A limited liability company or a corporation is headed by the board of directors elected by shareholders. The directors appoint one of their number to the position of managing director to be in charge of the day-day running of the company. In large organizations the managing director is often assisted by a general manager. Some companies also have assistant general managers. Many directors have deputies who are named deputy directors.

Directors need not be shareholders. They are responsible for the management of a company's affairs. They are not subject to any residence or nationality restrictions.

Big companies have many managers heading departments. They are all responsible to the managing director. Among various departmental managers (directors) the following can be mentioned:

· sales manager

· personnel manager

· chief manager

· district manager

· sales and marketing manager

· industrial engineering manager etc.

 

Vocabulary

upper limit – верхний предел

to head – возглавлять

to appoint – назначать

to be in charge of smth – заведовать чем-либо, отве­чать за что- либо

to run the company – управлять компанией

to assist – помогать

deputy – заместитель

deputy director – заместитель директора

deputy minister – заместитель министра

affair – дело

to be subject to smth – подпадать под действие че­го-либо

restriction – ограничение

to be responsible to smb for smth – быть ответственным перед кем-л. за что-л.

buyer – покупатель

business card syn. card / visiting card – визитная карточка

drive – проезд, дорога

managing director – директор-распорядитель

finance – финансы

financier – финансист

representative – представитель

 

1. Find the answers to the following questions in the text:

1. How many directors can a private company have? And what about a public company?

2. Who heads a limited liability company?

3. How is a managing director appointed? What are his duties?

4. Who is a general manager?

5. What is the status of a director?

6. What managers do many companies have?

7. Whose business cards were quoted? What information did they give?

 

2. Translate into English.

1. В этом районе работает торговый представитель фирмы. Где он сейчас?

2. Здесь же показаны пять вариантов визитных карточек.

3. В этом упражнении пять предложений на перевод.

4. Бизнес-план фирмы содержит пять разделов.

 

3. Translate the following word combinations into Russian; use them in the sentences of your own:

1. company's note-paper; 2. limited liability company; 3. residence restrictions; 4. nationality restrictions; 5. sales manager; 6. personnel manager; 7. deputy director; 8. assistant general manager.

 

Ex. 4. Underline the modal verbs, read and translate the sentences into Russian:

1. A public company may have as many directors as it finds neces­sary, but not less than two.

2. The directors are to appoint one of them to the position of manag­ing director.

3. In large companies the managing director can be assisted by a general manager.

4. The managing director is to take care of day-to-day running of the company.

5. Companies can also have assistant general managers.

6. I'm afraid I can't remember all this information.

7. You needn't remember it all.

8. You should simply remember that the titles of the heads of the companies can be different.

 

5. Choose the right form and translate the sentences:

1. (Is/Are) there usually an upper limit on the number of managers in a company?

2. As far as I know there ( is/are) no limit.

3. There ( was/were) three managers in the company.

4. There ( wasn't/weren't) many managers in the corporation.

5. Do you know if there ( is/are) any sales managers in this department?

6. If I am not mistaken there (is/are) not a single sales representa­tive in this area.

7. There ( is/are) a representative in the northern part of the country.

6.

Have a look at the chart showing some qualities making a good manager. Say which of these qualities seem most important to you; which of these qualities can be taught; where they can be taught.

7. Complete the sentences with the following words:

shareholders, directors (director), management, nationality restrictions, board, assistant, public company, managing director, junior executive, colleague, supervisor; staff, senior executive, superior, employee, middle manager, subordinate, work-force

1. The company's note-paper must list either all or none of the names of its.... 2. Directors need not be.... 3. They are responsible for the... of a company's affairs. 4. They are not subject to any residence or.... 5. A... must have at least two directors. 6. The shareholders are to elect... of directors. 7. Some companies also have... general managers. 8. The group of executives working below the top managers are generally called …. 9. Valerie is an important person in our company. She is a member of the Board of …. 10. Peter, a recent university graduate, has been with the firm for a year. He is at present a.... and is being trained for a managerial position. 11. Their.... is expanding rapidly. They now have over 5.000 employees. 12. At least 50% of our.... have been with the company over ten years. 13..... in an organization generally have more fringe benefits than lower-level managers. 14. We are a small group in the Research and Development Department. Fortunately, I get on well with all my …. 15. Our telephone operators work under the direction of a …. 16. I work under Mr. Brown. He's my …. 17. Shelia and Tom work under my authority. I am their boss and they are my …. 18. I am responsible for.... training and development. 19. A.... is a person of high rank in an organization, usually next in importance to the Chairman.

8. Sum up what the text says about:

a) directors of private companies;

b) directors of public companies;

c) directors of limited liability companies, their assistants and deputies;

d) managers.