LEGAL PROFESSION IN THE UNITED KINGDOM

Английский язык

Учебно-методическое пособие

Для магистратуры

Составитель: Е.К.Поздеева

Киров 2016

Составитель:

Поздеева Е.К. – кандидат педагогических наук, доцент кафедры общегуманитарных и социально-экономических дисциплин Волго-Вятского института (филиала) Университета имени О.Е.Кутафина (МГЮА)

Рецензенты:

В.А.Банин – кандидат филологических наук, доцент, декан факультета лингвистики Вятского государственного университета;

С.Н.Вахрушева – кандидат педагогических наук, доцент кафедры общегуманитарных и социально-экономических дисциплин Волго-Вятского института (филиала) Университета имени О.Е.Кутафина (МГЮА)

Учебно-методические пособие рекомендовано к печати и использованию в учебном процессе Волго-Вятского института (филиала) Университета имени О.Е.Кутафина (МГЮА) на заседании кафедры общегуманитарных и социально-экономических дисциплин Волго-Вятского института (филиала) Университета имени О.Е.Кутафина (МГЮА), протокол № 07 от 11 февраля2016 г.

Деловой иностранный язык: английский язык : учебно-методическое пособие для магистратуры / Е.К.Поздеева; Волго-Вятский институт (филиал) Университета имени О.Е.Кутафина (МГЮА). – Киров, 2016. – 66 с.

Пособие составлено на основе рабочей программы по дисциплине «Деловой иностранный язык: английский язык» и методических указаний кафедры английского языка №2 Московского государственного юридического университета имени О.Е.Кутафина (МГЮА) в соответствии с требованиями ФГОС ВПО магистратуры направления 030900.68 «Юриспруденция».

В учебное пособие включен профессионально-ориентированный текстовой материал из учебной и справочной юридической литературы, а также юридических документов. Аутентичные тексты позволяют овладеть деловой лексикой, изучить основные понятия, необходимые для деловой деятельности на английском языке, познакомиться с отраслями права, на которых строятся деловые отношения.

Практические задания пособия направлены на то, чтобы совершенствовать необходимые для юриста навыки различных видов чтения (просмотрового, поискового, изучающего), а также навыков воспроизводить и передавать информацию в связных аргументированных высказываниях (говорение и письмо), планировать и адекватно конструировать свое речевой и неречевое поведение с учетом специфики ситуаций в сфере профессиональной деятельности.

Учебно-методическое пособие рекомендовано к печати и использованию в учебном процессе Волго-Вятского института (филиала) Университета имени О.Е. Кутафина (МГЮА) на заседании кафедры общегуманитарных и социально-экономических дисциплин Волго-Вятского института (филиала) университета имени О.Е. Кутафина (МГЮА), протокол № 07 от11.02. 2016

СОДЕРЖАНИЕ

Предисловие ……………………………………………………................
Unit 1. Legal profession in the United Kingdom…………………………….
Unit 2. Different types of companies………………………………………...
Unit 3. Company Structure…………………………………………………..
Unit 4. Fundamental changes in a company…………………………………
Unit 5. Contract law…………………………………………………………
Unit 6. Information technology law and cybercrime. Identity theft……….
Unit 7. Intellectual property law……………………………………………
Список использованной литературы……………………………………...

ПРЕДИСЛОВИЕ

Настоящее учебно-методическое пособие по дисциплине «ДЕЛОВОЙ ИНОСТРАННЫЙ ИНОСТРАННЫЙ ЯЗЫК: АНГЛИЙСКИЙ ЯЗЫК» направления 030900 «Юриспруденция» предназначается для студентов-магистрантов.

Целями освоения учебной дисциплины «Деловой английский язык» являются: формирование коммуникативных компетенций для эффективного письменного и устного делового общения в сфере бизнеса и предпринимательского права; обучение письменному переводу юридической и деловой документации в сфере предпринимательского права с английского языка на русский. Выбор указанных целей курса диктуется практической необходимостью владения юристом навыками и умениями письменного и устного делового общения в сфере бизнеса и предпринимательского права, поскольку они являются составной частью их профессиональной квалификации.

Достижение данных целей предполагает решение различных языковых и речевых задач обучения, а именно, освоение магистрантами языкового материала в целях расширения лексического запаса; совершенствование навыков всех видов чтения (просмотрового, ознакомительного, поискового, изучающего) литературы по специальности на иностранном языке с целью получения разного рода профессиональной и научной информации; совершенствование полученных на предыдущем образовательном этапе навыков работы с профессиональной и научной информацией на иностранном языке; увеличение объема знаний в сфере деловых отношений и тех отраслей права, которые необходимы для ведения деловой активности.

Материалкурса представлен в виде профессионально-направленных аутентичных текстов, адаптированными и переработанными в целях оптимизации образовательного процесса текстами. Указанные тексты объединены в семь тематических блоков по основным темам, предусмотренным рабочей программой по дисциплине «Деловой иностранный язык: английский язык.

К каждому тексту дается лексический минимум, которым студентам необходимо овладеть при изучении темы. После текста представлены задания в виде LANGUAGE FOCUS, направленные на освоение и закрепление базовой терминологической лексики темы, на расширение словарного терминологического запаса студентов-магистрантов, в том числе на совершенствование умений оперировать языковыми средствами, а также на проверку понимания текста.

В большинстве разделов присутствуют задания SPEAKING для развития навыков устной речи, для закрепления терминологической базы по заданной теме, а также для совершенствования навыков воспроизводить и передавать информацию в связных аргументированных высказываниях.

В каждом разделе есть тексты для дополнительного чтения – ADDITIONAL READING. В данных текстах содержится материал, который знакомит студентов с некоторыми дополнительными вопросами и аспектами по теме раздела.

UNIT 1

LEGAL PROFESSION IN THE UNITED KINGDOM

ACTIVE VOCAVULARY

legal advice – юридическая консультация solicitors – солиситоры (адвокаты более низкого уровня) barristers – барристеры (адвокаты более высокого уровня) petty crimes – незначительные правонарушения recovering debts – взыскание долгов evidence – доказательства, улики appear in court – представлять интересы клиента в суде litigation department– отдел, занимающийся судебными спорами preparing briefs –подготовка аналитических записок по делу drafting contracts –составление договоров drawing up wills –составление завещаний property –собственность offer a share in the profits –предложить процент от прибыли a practice -фирма private law –частное право employment law –трудовое право environmental law –экологическое право

qualification and practice –образование и опыт работы interpretation of law –толкование законов give opinions on legal matters –консультировать по правовым вопросам chambers –коллегии the Bar –коллегия адвокатов Inns of Court –школы подготовки барристеров circuit –судебный округ tenants– владельцы, держатели expenses and support services –основные расходы и расходы на обслуживание клиентов the Clerk –секретарь right of audience –право представление клиентов в суде personal injury –физический ущерб in-house lawyer –штатный юрист компании judicial offices –судейские должности senior appointments –назначение на высокие судейские должности Court of Appeal –апелляционный суд High Court –Высокий суд правосудия Lord Chancellor –Лорд Канцлер

READING

LANGUAGE FOCUS

1. Give Russian equivalents for the following English words and phrases:

to give opinions on legal matters to recover debts to appear in court to prepare briefs to draft contracts to draw up wills private law employment law environmental law

property a share in the profits expenses and support services right of audience personal injury in-house lawyers legal advice petty crimes evidence

Match the columns.

1. to give 2. to recover 3. to appear 4. to prepare 5. to draft 6. to draw up

a. wills b. contracts c. opinions d. in court e. briefs f. debts

1. private 2. personal 3. in-house 4. employment 5. legal 6. petty 7. environmental

a. lawyers b. law c. crimes d. injury e. advice

SPEAKING

ADDITIONAL READING

Text 1

ENTERING THE PROFESSION

Solicitors are controlled by their own professional body called the Law Society. To become a solicitor is usual to have a law degree and then to take a one-year Legal Practice Course. This is followed by a two-year training period, where the trainee solicitor works in a firm of solicitors or for other organization such as the Crown Prosecution Service or local or central government. During this two-year period he will be paid, though not at the same rate as a fully qualified solicitor, and will do his own work supervised by a qualified solicitor. He will also have to complete a Professional Skills Course, which gives training in interviewing clients and witnesses, negotiating, advocacy and business management including dealing with accounts. Finally the trainee will be admitted as a solicitor by the Law Society and his name will be added to the list of solicitors. Those who have a degree in another subject must take an extra one-year course on law, called the Common Professional Examination before going on to take the Legal Practice Course.

Barristers are controlled by their own professional body called the General Council of the Bar. To become a barrister it is usual to start by obtaining a law degree. Those with a degree in other subjects will have to do a one-year course on law and pass the Common Professional Examination. In order to go on to the next stage of training it is necessary to join an Inn of Court and be accepted on the Bar’s Vocational Training Course which lasts one academic year. The course concentrates on practical skills, particularly advocacy, and students learn to draft legal documents and present cases in court. Joining an Inn of Court and attending there to dine or for week courses is compulsory but students may choose which of the four Inns they would like to join.

Once the student has passed the Vocational Course and dined the correct number of times he will be called to the Bar by his Inn of Court. He is then a barrister but will not be allowed to practice in court until he has completed the first six months of the next stage of his training which is called pupilage. Being a pupil barrister means studying under an experienced barrister, reading his work, practicing giving advice and writing opinions on points of law, drafting other legal documents and going to court with the pupil master to observe cases. The total length of pupilage is one year and this can be served with the same pupil master or as two periods of six months with different pupil masters. During this period the barrister must also take part in a program of continuing education organized by the Bar Council.

Do the task.

Text 2

SOLICITORS AT WORK

The majority of those qualifying as solicitors work in private practice in a solicitors’ firm, but there are others careers available and some newly qualified solicitors may go to work in the Crown Prosecution Service or become advisors in local government or in-house solicitors for commercial or industrial firms.

Private solicitors’ firms vary from small ‘high-street’ practices in towns throughout England and Wales to the very large firms in London. The number of solicitors working in each type of practice will also vary from one man, known as a sole practitioner, to hundreds of solicitors. The work of these firms is also varied. A small ‘high-street’ firm will be a general practice advising clients on a wide variety of topics, such as consumer problems, housing problems, business matters and family problems. A solicitor working in such a practice will spend some of his time interviewing clients in his office and dealing with paperwork, possibly drafting a contract or drawing up a will or dealing with documents for the sale of houses or other property or preparing papers for court. He may also, if he wishes, act for some of his clients in court. Standing up in court to put a client’s case is known as advocacy and some solicitors will spend much of their time in court while others may prefer to concentrate on office work. In most firms of solicitors there is an element of specialization. The firm itself may only deal with a certain type of work, for example, some firms will only deal with civil matters and not take any criminal cases. Within the firm solicitors are likely to specialize so that, for example, one solicitor may deal solely with property matters while another concentrates on matrimonial work. The bigger the firm of solicitors the more the individual solicitors will specialize. Some of the big city firms will deal mainly with company work and solicitors working for them are likely to do highly specialized work.

Prior to 1987 solicitors had a monopoly over conveyancing work, that is, dealing with the legal side of transferring property in house sales. However, under the Administration of Justice Act 1985, other people were allowed to become licensed conveyancers and under the Court and Legal Services Act 1990, this right was extended to banks and building societies. As a result, solicitors became more competitive and reduced their fees, but even though they lost a large proportion of conveyancing work and this led to a demand for wider rights of advocacy.

Solicitors may do advocacy work in the Magistrates’ Courts and in the County Courts but have very limited rights to appear in the Crown Court and High Court. Normally a solicitor can only act as an advocate in the Crown Court on appeals or a committal for sentence from the Magistrates’ Court. High Court appearances are usually limited to making statements in cases that have been settled. If a solicitor wishes to specialize in advocacy and have an unlimited right to appear as an advocate in all courts he must get a certificate in advocacy. Such a certificate will only be granted if a solicitor has already acted as an advocate in the Magistrates’ Court and the County Court, taken a short training course and passed examination on court work. Solicitors were given the right to apply for these certificates under the Courts and Legal Services Act 1990, and the first certificates were granted in 1994.

As already mentioned, the Law Society controls solicitors and its Disciplinary Tribunal may ‘strike off’ any solicitor found guilty of serious professional misconduct such as fraudulent use of clients’ money. The Law Society has also set up the Office for the Supervision of Solicitors to deal with complaints about the work of solicitors. It handles about 30, 000 complaints a year. Most of these complaints are about overcharging or delay. However, the Office for the Supervision of Solicitors itself has been criticized for delay in handling complaints.

Do the task.

UNIT 2

ACTIVE VOCAVULARY

liability –ответственность debts –долги tax advantages – преимущества при уплате налогов raising capital – привлечение капитала sole proprietorship –индивидуальное предпринимательство general partnership –генеральное партнерство limited partnership –партнерство с ограниченной ответственностью limited liability company –компания с ограниченной ответственностью corporation –компания exercise control –осуществлять контроль trade-off – недостаток, компромисс subject to full personal responsibility – нести полную личную ответственность license fee –лицензионный сбор comply with laws –соблюдать законы pledge assets – закладывать активы security for repayment of loans – поручительство по выплате займа entitled to profits –иметь право на получение прибыли pay for losses –оплатить убытки become a bankrupt –обанкротиться expanding business – расширение компании increase capital –увеличит капитал assume duties and obligations – взять на себя ответственность и обязанности owe legal obligations –нести правовые обязательства income tax –подоходный налог as such –как таковой

pro rata share of the profit– пропорциональное распределение прибыли income tax return- декларация о подоходном налоге running costs –расходы на управление компанией general partners – генеральные/полные партнёры limited partners – партнеры с ограниченной ответственностью sleeping partner – пассивный партнер Registrar of Companies – бюро по регистрации акционерных компаний Private Limited Company – закрытое акционерное общество Public Limited Company – открытое акционерное общество shareholders – акционеры appoint a director – назначить директора go out of business – ликвидировать предприятие sue and be sued – выступать в качества истца и ответчика in its own right – самостоятельно security over personal assets – обеспечение в виде личных активов company borrowing – займы компании stock market –фондовый рынок authorized share capital– уставной капитал компании charter – нормативный документ separate legal entity – самостоятельное юридическое лицо double taxation – двойное налогообложение

READING

LANGUAGE FOCUS

1. Give Russian equivalents for the following English words and phrases:

to enter into contracts to sue to be sued to pay debts to raise capital to go out of business to run a business to employ people to be responsible for to share profits to share liability to debts to find property at risk

business entity legal person sole trader stock exchange minimum share capital shares listed shares shareholders in strict accordance with the law

Match the columns.

1. to enter into 2. to pay 3. to raise 4. to go out of 5. to run 6. to employ 7. to share 8. to find

a. liability to debts b. property at risk c. debts d. capital e. contracts f. business g. people h. profits

1. business 2. legal 3. sole 4. stock 5. share 6. listed

a. trader b. shares c. exchange d. capital e. entity f. person

SPEAKING

Possible disadvantages

1. There is a danger that conflicts of personality could ruin your business.

2. You may not have enough knowledge in economics and law to run your business.

3. It may be difficult to expand.

4. It’s vital to expand your business in order to increase profits and enlarge everybody’s share and you’ll have to work more intensively

5.You may risk your own possessions if the company ruins.

ADDITIONAL READING

Text 1

LECTURE ON COMPANY LAW

Part I

In today’s lecture, I’ll be addressing what a corporation is, specifically, how it differs from a sole proprietorship and partnership. A corporation is a separate and distinct legal entity. This means that it can open a bank account, own property and do business, all under its own name. The main advantage of a corporation is that its owners, known as stockholders or shareholders, are not personally liable for its debts and liabilities. For example, if a corporation gets sued and is forced into bankruptcy, the ‘owners’ will not be required to pay the debt with their own money. If the assets of the corporation are not enough to cover the debts, the creditors cannot go after the stockholders, directors or officers of the corporation to recover any shortfall.

A corporation is managed by a board of directors, which is responsible for making major business decisions and overseeing the general affairs of the corporation. These directors are elected by the shareholders of the corporation. The officers, who run the day-to-day operation of the corporation, are appointed by the directors.

One major disadvantage of a traditional corporation is double taxation. It pays corporate tax on its corporate income (the first tax). Then, when the corporation distributes profit to its stockholders, the stockholders pay income tax on those dividends (the second tax). One way to avoid double taxation is to choose to be taxed as a pass-through entity, like a partnership or a sole proprietorship. That way, there is only one level of taxation. The corporate profit ‘passes through’ to the owners, who pay taxes on the profit at their individual tax rates.

Do the task.

Answer the questions:

1. What is the most important advantage of a corporation?

2. What significant disadvantage does the lecturer mention?

3. How can double taxation be avoided?

Text 2

LECTURE ON COMPANY LAW

Part II

As I was saying, corporations enjoy many advantages over other business entities. However, the main advantage of a corporation is that stockholders are not liable for corporate debts. This is the most important characteristics of a corporation. In contrast, in case of a sole proprietorships and partnerships, the owners are personally responsible for the debts of the business. If the assets of the sole proprietorship or partnership cannot satisfy the debt, creditors can go after each owner’s personal bank account, house, etc. to make up the difference. As we’ve seen, if a corporation runs out of funds, its owners are usually not liable.

The second benefit of corporations is self-employment tax savings. Earnings from a sole proprietorship are subject to self-employment taxes. With a corporation, only salaries (and not profits) are subject to such taxes.

The third advantage of a corporation is its continuous life. The life of a corporation, unlike that of a partnership or sole proprietorship, does not expire upon the death of its stockholders, directors or officers. The fourth advantage is the fact that it is easier for a corporation to raise money. A corporation has many avenues to raise capital. It can sell shares, and it can create new types of stock, with different voting or profit characteristics.

The fifth and the last advantage is the ease of transfer. Ownership interest in a corporation may be sold to third parties without disturbing the continued operation of the business. The business of a sole proprietorship or partnership, on the other hand, cannot be sold whole; instead, each of its assets, licenses and permits must be individually transferred, and new bank accounts and tax identification numbers are required.

Right, let us move on to the disadvantages. The first of these drawbacks is the higher costs. Corporations cost more to set up and run than sole proprietorship or partnership. For example, there are the initial formation fees, filing fees and annual state fees.

The second disadvantage is the formal organization and the corporate formalities. A corporation can only be created by filing legal documents with the state. In addition, a corporation must adhere to technical formalities. These include holding board and shareholder meetings, recording minutes, having the board of directors approve major business transactions, and corporate record-keeping. If these formalities are not observed, the stockholders risk losing their personal liability protection. While observing corporate formalities is not difficult, it can be time-consuming. This is not the case with either a sole proprietorship or partnership, both of which can start and operate without any formal organization or operating procedures – not even a written agreement.

The third and final disadvantage is unemployment tax. A stockholder-employee of a corporation is required to pay unemployment insurance taxes on his or her salary, whereas a sole proprietor or partner is not.

Do the tasks.

UNIT 3

COMPANY STRUCTURE

ACTIVE VOCAVULARY

running business– управление компанией shareholders– акционеры employees– работники get shares in return – получить акции взамен goods or services– товары или услуги Board of Directors– совет директоров Chairman = President– глава компании Managing Director = Chief Executive Officer (CEO)– главный исполнительный директор hire – нанимать overall responsibility – полная ответственность day-to-day affairs– повседневные дела owe a duty to the company– нести ответственность перед компанией legal entity – юридическое лицо senior managers = company officers report to –отчитываться перед Personnel = Human Resources- отдел кадров Research and Development or R & D – отдел научных исследований и разработок regulations for incorporation –нормативные акты, регулирующие процесс создания компании trading name – фирменное название application for the registration– заявление о регистрации компании prior approval – предварительное одобрение certificate of incorporation– свидетельство о регистрации компании constitutional documents –учредительные документы компании statutory forms– официальные формы отчетности filing fee– регистрационная пошлина Memorandum of Association– учредительный договор компании Articles of Association – устав компании registered office– юридический адрес компании mortgage company property – закладывать имущество компании raising finance – привлечение финансовых средств authorized share capital = nominal capital– уставной капитал компании issue share capital- выпускать акционерный капитал liability limited by shares– ограниченная ответственность liability limited by guaranty –ответственность, ограниченная поручительством enter into contracts –заключать договоры nominal value of shares– номинальная стоимость акций sell assets – продавать активы provisions– положения документа alter – изменять prescribed procedures– установленный порядок lodge a document– представлять документ internal management– внутренне управление annual general meetings (AGMs)– ежегодное собрание акционеров extraordinary general meetings– внеочередное собрание акционеров loans– займы, кредиты share transfer – передача акций allotment of shares –распределение акций powers and duties – полномочия и обязанности company’s register – реестр компании

beneficial ownership – бенефициарное право собственности nominee – номинальный владелец unless otherwise stated– если не предусмотрено иное exercise the right attached– пользоваться предоставленным правом vote– голосовать receive dividends– получать дивиденды enforce rights against the company –осуществлять свои права в отношении компании appoint and remove the directors –назначать и снимать с должности директоров remain in position– оставаться в должности listed company– официально зарегистрированная компания stand for election annually– участвовать в выборах ежегодно on behalf of –от имени/от лица executive and non-executive directors –исполнительные директора и наблюдательные члены Совета директоров fee– вознаграждение за услуги salary– зарплата mandatory qualifications – обязательные требования к образованию undischarged bankrupt – не восстановленный в правах банкрот leave = permission company compliance –соблюдение компанией требований filing of documents – подача документов Company’s House– регистрационная палата criminal offence– уголовное преступление imposition of a fine– наложение штрафа criminal record– судимость accounts– бухгалтерские отчеты Registrar of Companies– бюро регистрации акционерных компаний defaulting company– неплатежеспособная компания charge a late filing penalty– взымать штраф за задержку в подаче submit annual returns– представлять отчетные данные за год strike off the register – исключить из реестра dissolve– распустить notice– уведомление statutory notices may be validly served– официальное извещение может быть вручено на законных основаниях chief administrative officer– главное должностное лицо experience and expertise– знания и опыт accounting and finance– бухгалтерия и финансы corporate governance– управление компанией employment legislation – трудовое законодательство security of documentation – надежная защита документов insurance – страхование default committed by the company -невыполнение обязательств компанией remit of their duties – круг обязанностей maintaining the statutory register – ведение официальной документации keeping minutes – ведение протокола собрания

READING

LANGUAGE FOCUS

1. Give Russian equivalents for the following English words and phrases:

to owe a duty to exercise the right to vote to receive dividends to enforce rights to appoint and remove to mortgage property to raise finance to issue share capital to enter into contracts to sell assets to lodge a document to file documents to impose a fine to charge a penalty to submit annual returns to serve statutory notices to commit default to maintain the statutory register to keep minutes on behalf of unless otherwise stated allotment of shares nominal value of shares regulations for incorporation application for the registration certificate of incorporation

shareholders goods or services overall responsibility legal entity constitutional documents statutory forms filing fee Memorandum of Association Articles of Association registered office authorized share capital prescribed procedures annual general meetings extraordinary general meetings listed companies executive directors salary undischarged bankrupt company compliance defaulting company late filing accounting and finance employment legislation insurance loans share transfer

Match the columns.

1. to mortgage 2. to raise 3. to impose 4. to charge 5. to exercise 6. to enforce 7. to appoint 8. to issue 9. to transfer 10. to allot 11. to file 12. to dissolve

a. share capital b. property c. finance d. shares e. a fine f. a director g. a penalty h. the rights i. documents j. a company

1. constitutional 2. nominal 3. registered 4. annual 5. managing 6. legal 7. listed 8. executive 9. authorized 10. beneficial 11. defaulting 12. employment

a. documents b. capital c. company d. legislation e. office f. value g. directors h. entity i. meeting j. ownership

SPEAKING

You are a starting businessman. You are creating your own company.

1. Decide which goods or services you will provide.

2. Which type of company is it going to be?

3. Give a name to your company

4. Make a structure of the company.

5. Define duties for all departments and members.

6. Make a kind of presentation to your group mates, telling them about

your company.

ADDITIONAL READING

Do the task.

UNIT 4

ACTIVE VOCAVULARY

minority shareholders – миноритарные акционеры statutory regulations – нормативно-правовые акты alterations- изменения constitutional amendments – внесение изменений в устав акционерного общества merger - слияние consolidation – укрупнение sale of substantially all assets – продажа существенной части активов acquisition of controlling shares– приобретение контрольного пакета акций liquidation - ликвидация submit special resolution – представить решение, принятое квалифицированным большинством голосов Registrar of Companies – бюро по регистрации акционерных компаний Companies House – регистрационная палата Certificate of Incorporation on Change of Name – свидетельство о перерегистрации в связи с изменением наименования Articles of Association– устав компании increase in share capital – увеличение акционерного капитала consolidation of shares – консолидация/укрупнение акций division of shares – дробление акций subdivision of shares – более мелкое дробление акций cancellation of shares– погашение акций reduce share capital – сокращать акционерный капитал court confirmation – судебная санкция object clause – статья в уставе, формулирующая цель компании at its discretion– по своему усмотрению European Community competition authorities – антимонопольная служба европейского сообщества anti-competitive concentrations of market power– ситуация на рынке, мешающая свободной конкуренции clearance– разрешение, свидетельство regulatory authorities – контрольно-надзорные органы unanimous shareholder approval – единодушное одобрение акционеров purchasing of company’s assets– покупка активов компании

controlling portion of outstanding shares – контрольная доля акций, находящихся в обращении takeover bid – предложение о присоединении компании acquiring company=acquirer=offeror – поглощающая компания acquired company = target = offeree – поглощаемая компания hostile takeovers – недружественное поглощение friendly takeovers – дружественное поглощение City Code of Takeovers and Mergers –Кодекс Сити по правилам слияний и поглощений Panel of Takeovers and Mergers – коллегия по слияниям и поглощениям abide by this Code – подчиняться Кодексу breach of the Code – нарушение кодекса disclose dealings in relevant securities – предоставление информации о сделках с ценными бумагами winding-up– ликвидация компании compulsory winding-up – принудительная ликвидация insolvent – неплатежеспособный voluntary liquidation– добровольная ликвидация debts or liabilities – долги или обязательства assets and available cash – активы и свободные денежные средства re-negotiate debt – провести новые переговоры по долгам realize assets to discharge debt– реализовать активы, чтобы выплатить долг borrow money– заимствовать деньги increasing the liabilities –увеличение заемного капитала impose obligations– налагать обязательства company officers– руководящее звено компании secured creditors – кредитор по обеспеченному долгу lending– предоставление займа security over the company’s assets – обеспечение в виде активов компании unsecured creditors – кредитор по необеспеченному долгу initiate action– начать судебный процесс preferential creditors – кредитор с преимущественным правом требования

At some point at the life of a company, the owners may wish to make fundamental changes to the company. Some of these changes may merely be basically administrative, such as changing the company’s name. Other changes may entail alteration of the company’s structure. These changes sometimes place the rights of creditors and minority shareholders at risk and are thus subject to special statutory regulations. The main examples of the types of alterations which fall into this group are constitutional amendments, mergers, consolidations, sale of substantially all assets, acquisition of controlling shares and liquidation.

The most common constitutional alterations in a company include alteration of the company’s name, capital or object. According to English law, a change of name can be made by special resolution at a general meeting, or all the members must sign a written resolution that the name of the company be changed to the new name. A signed copy of the resolution containing the new name must then be submitted to the Registrar of Companies. If the submission is in order, Companies House will issue a Certificate of Incorporation on Change of Name.

A company may alter its capital structure, provided that the Articles of Association grant such power. Such an alteration may entail such things as an increase in share capital, a consolidation or division of shares, a subdivision of shares or cancellation of shares. A company may only reduce its share capital following court confirmation. A company may alter its object clause by special resolution. However, the court may at its discretion set aside such a resolution upon application by a small group of minority shareholders.

A merger takes place when one company is absorbed into another company. Where company X is merged into company Y, company Y is the acquiring company and survives, while company X is the acquired company and disappears. In a consolidation, both companies X and Y disappear and a new company Z is formed. The freedom of companies to merge is controlled by various statutes, European Community competition authorities (known as anti-trust regulators in the US), and the courts, which regulate anti-competitive concentrations of market power. If a merger is permitted, clearance is given by the regulatory authorities.

A company may also gain control of another company by purchasing substantially all of the other company’s assets. At common law, a sale of this kind normally requires unanimous shareholder approval. However, today such sales may take place upon approval of some majority of the shareholders. Acquisition of shares is another method of gaining control of another company. This is achieved by purchasing all or the controlling portion of outstanding shares in a company. Many times this is achieved through a takeover bid, whereby company Y (the acquiring company or acquirer or offeror) makes a public offer to shareholders of company X (the acquired company or target or offeree) to sell their stock, generally at a price above the market price. The offer is made subject to the condition that it will only be effective in the event that a specified percentage of shareholders accept the offer. There can be hostile takeovers and friendly takeovers. In the former, the takeover is opposed by the target’s company management, while in the latter the action is supported by management. The conduct of takeovers is controlled by rules set out by the City Code of Takeovers and Mergers. The Code is administered by the Panel of Takeovers and Mergers, an independent body which draws its members from major financial and business institutions. UK companies have to abide by this Code. Disciplinary action may result from certain breaches of the Code, for example, failing to disclose dealings in relevant securities of the offeree company. The guiding principles behind the Code are that shareholders are treated fairly and are not denied an opportunity to decide on the merits of a takeover, and that shareholders of the same class are afforded equivalent treatment by an offeror.

Finally, winding-up or liquidation of a company is the process by which the life of a company is brought to an end. Compulsory winding-up is ordered by the court when the company is insolvent. However, a voluntary liquidation refers to a process which may be initiated by the members of the company where the company is solvent. Insolvency describes the financial state of a company when its debts or liabilities exceed its assets and available cash. As soon as a company is insolvent, it must take action to resolve the situation. This may include re-negotiating debt, realizing assets to discharge debt or even borrowing more money and increasing the liabilities. There is a lot of legislation that imposes obligations on company officers in relation to the interests of creditors. There are secured creditors, whose lending is protected by security over the company’s assets, for example banks, and there are unsecured creditors, often suppliers, who may initiate action to achieve repayment. There are also preferential creditors, such as the company’s own employees, for example in cases where wages haven’t been paid, and occupational pension schemes. The options available to an insolvent company will be affected by the position taken by its creditors.

LANGUAGE FOCUS

1. Give Russian equivalents for the following English words and phrases:

to abide by the Code to breach a Code to negotiate debt to discharge debt to borrow money to impose obligations to lend to initiate action to purchase to disclose dealings in securities Registrar of Companies Companies House insolvent debts or liabilities merger consolidation of shares division of shares cancellation of shares

secured creditors preferential creditors hostile takeovers friendly takeovers compulsory winding-up available cash minority shareholders constitutional amendments sale of assets acquisition of controlling shares share capital regulatory authorities unanimous approval outstanding shares takeover bid acquiring company acquired company company officers

Word formation.

Match the columns.

1. to sign 2. to grant 3. to cancel 4. to submit 5. to issue 6. to re-negotiate 7. to consolidate 8. to realize 9. to discharge 10. to disclose 11. to gain 12. to borrow 13. to increase 14. to initiate 15. to purchase 16. to subdivide 17. to accept

a. resolution b. debt c. shares d. assets e. money f. a certificate g. power h. an offer i. dealings j. liabilities k. action l. control

1. minority 2. acquiring 3. preferential 4. general 5. secured 6. controlling 7. compulsory 8. outstanding 9. voluntary 10. available 11. competition 12. hostile 13. special 14. market 15. statutory 16. unanimous 17. takeover 18. constitutional

a. shareholders b. shares c. liquidation d. authorities e. company f. meeting g. cash h. creditors i. regulations j. bid k. amendments l. resolution m. winding-up n. takeovers o. price p. approval

ADDITIONAL READING

Text 1

Do the task.

Text 2

SPIN-OFFS

The term 'spin-off refers to any distribution by a corporation to its shareholders of one of its two or more businesses. Sometimes the spun-off business is transferred first to a newly formed subsidiary corporation. The stock of that subsidiary is then distributed to the shareholders of the distributing corporation. Other times, the stock of a pre-existing subsidiary is distributed.

Spin-offs can include distributions on a proportional basis (i.e. pro rata), in which the receiving shareholders do not give up any of their stock in the distributing corporation when they receive the spun-off stock. Sometimes the distribution only goes to certain shareholders. In this case, the receiving shareholders give up some (or all) of their stock in the distributing corporation in exchange for the stock of the controlled subsidiary, Non-pro-rata spin-offs are sometimes referred to as 'split-offs'. A non-pro-rata spin-off that results in one group of shareholders holding all the stock of the distributing corporation and a second group holding all the stock of the former subsidiary corporation is referred to as a 'split-up'.

A spin-off is used to separate two businesses that have become incompatible. In a case where investors and lenders may want to provide capital to one but not all business operations, a spin-off can be a good solution. Spin-offs are also used to separate businesses where owner-managers have different philosophies. Spin-offs may furthermore be used by publicly held companies when the stock market would value the separate parts more highly than combined operations. The separation of business operations could also lead to a greater entrepreneurial drive for success.

The tax characteristics of a qualifying spin-off under Internal Revenue Code Section 355 make this an attractive tool for solving certain corporate challenges. Without Section 355, the distributing corporation would have to recognize a gain on the stock it distributed as if it had sold that stock. In addition, shareholders receiving the distribution would be taxed on the shares received, either as a dividend or as capital gain. This double tax usually makes spin-offs extremely expensive. Code Section 355 permits a spin-off to be accomplished without tax to either the distributing corporation or to the receiving shareholder. Any gain realized by the shareholder is deferred until the stock is sold.

Do the task.

Answer the questions.

1) What is a spin-off?

2) How do we call a company which distributes its business operations?

3) How do we call a company which is spun-off?

4) Who will receive the stock of a subsidiary company?

5) What are the types of distribution/spin-off?

6) What are the characteristics of a proportional distribution?

7) What are the characteristics of a non-pro-rata spin-off?

8) How do we call a non-pro-rata spin-off when receiving shareholders give up all of their stock in the DC?

9) What is the result of a split-up?

10) In which cases does a company management use a spin-off?

11) Section 335 of the Internal Revenue Code makes spin-offs attractive for corporations and shareholders. Why?

12) When do receiving shareholders pay tax on the gain realized?

UNIT 5

CONTRACT LAW

ACTIVE VOCAVULARY

draft and interpret– составлять и толковать provisions of an agreement – положения договора lease agreement – договор аренды loan agreement – договор займа sales agreement – договор купли-продажи consultancy agreement – договор на оказание консалтинговых услуг hire purchase agreement – договор купли-продажи с рассрочкой hire contract – трудовой договор service contract – договор на оказание услуг binding agreement– соглашение, обязательное для исполнения parties concerned –заинтересованные стороны accept an offer– принять предложение offeror –предлагающая сторона; оферент offeree –получатель предложения; акцептант consideration – материальное вознаграждение acceptance– принятие предложения enforceable/valid contract – договор, имеющий юридическую силу promisor– лицо, дающее обещание или обязательство promisee – лицо, которому дано обещание или обязательство counter-offer – встречное предложение essential terms – существенные условия договора price and the subject matter– цена и предмет договора enforce a contact– требовать исполнения договора (по суду) vague / indefinite contract– договор без четко сформулированных условий terms of the agreement – условия договора

oral contact – устное соглашение rights and obligations – права и обязанности defences– возражения ответчика escape obligations under the contract –снять с себя обязательства по договору fraud in the inducement -введение в заблуждение относительно намерений duress – понуждение, принуждение lack of legal capacity -отсутствие дееспособности при заключении договора attack the validity of a contract -оспорить действительность договора breach a contract –нарушить договор file a lawsuit– подать иск breaching party– сторона, нарушившая договор non-breaching party = injured party – добросовестная страдавшая сторона award damages– присудить компенсацию ущерба remedies– средства судебной защиты specific performance – реальное исполнение договора enforceable rights –права по договору, защищенные законом for the benefit of a third party– в пользу третьего лица transfer the rights/duties – передать права/обязанности assignment of rights– переуступка прав delegation of duties – передача обязанностей assignor - правообладатель assignee – правоприобретатель delegate –лицо, передающее обязанности delegatee -лицо, которому передоверены обязанности

The basic principles of contract law in the English system arise from established custom and rules and are fundamental to all areas of law in practice. Contract law deals with drafting and interpreting the provisions of any legal agreement, such as the lease, or loan agreement, a sales agreement, a consultancy agreement, a hire purchase agreement, a hire contract, or a service contract, etc. The principles of contract law will determine whether and at what point a binding agreement has been made between the parties concerned.

12 3 4 5 6 Следующая ⇒