1. Unit 18
Company law

2. Read the text, pp. 177 - 178 and complete the following table
FORM OF
BUSINESS
ORGANIZATION
Owner(s)
Control over the business / profit /
management
Legal personality
/liability
Taxation
Other
Features
Examples
Sole trader
One person
Self-employed owner
not separte
Self-a.
tax ret.
Simple, e.g.
hairdresser
“Ordinary”
Partnerships
Limited liability partnership
Limited company
Private limited company
Public limited
Company

3. LIMITED LIABILTY PARTNERSHIP Complete the types of partners and their obligations
PARTNERS IN LIMITED LIABILITY PARTNERSHIP
______________
Obligations: -
______________
Obligations: -
______________
Obligations: -

4. Partnership agreement
Read once again the paragraph 2, p. 177 and
complete the important details of the agreement
(deeds of partnership)
Names of ___________
The purpose of _____________
The prinicipal _______________
The amount of c______________
The liability and __________________
The steps for the ___________________

5. Company formation Key documents in the three legal systems
Sets fort the object of the company
Defines its capital structure
Names the members of the board of directors
Defines procedures for holding a vote of the shareholders, etc.
Croatia UK
USA
OSNIVAČKI UGOVOR
THE MEMORANDUM OF ASSOCIATION
ARTICLES / CERTIFICATE OF INCORPORATION

6. TYPES OF LIMITED COMPANIES Complete the types and their features
Limited company can be devided into:
______________
Features: -
______________
Features : -

7. Key colocations – translate into Croatian
to own / form / manage / run a business
to have (un)limited liability
to be liable for debts / obligations
to be personally responsible for debts / losses
to keep accounts
to tax profits
to pay income tax
to contribute / utilize capital / skills / expertise
to share responsibilites / profits
to register for VAT
to set up / dissolve a partnership
to draw up a partnership agreement
to register with Companies House

8. Key colocations – translate into Croatian PART II
to file self-assessment tax form
to have perpetual life (a company)
to submit financial accounts
to offer shares for sale
to employ one or more persons
to purchase large quantities of shares
to require the minimum share capital

9. Vocabulary work – p.¸179 – 180
Do the exercise V – complete the definitions.
2. Find the English terms for the following Croatian expressions:
a) pravna osoba = ___________________
b) poslovni poduhvat / ulaganje = ____________________
c) registracija trgovačkog društva = ___________________
d) porezna prijava = ________________________
e) odgovornost = ____________________
f) dioničar / suvlasnik = ___________________
g) ponuda za preuzimanje trgovačkog društva =
_______________________

10. Compare the UK and Croatian business organisations Complete the table.
SOLE ____________
TRGOVAC POJEDINAC
PARTNERSHIPS
(association of persons)
_________ p.
limited ______ p.
TRGOVAČKA DRUŠTVA
(društva osoba)
javno trgovačko društvo
komanditno društvo
COMPANIES
(association of capital)
Public ____ company
_______ limited company
TRGOVAČKO DRUŠTVO
(društva kapitala)
dioničko društvo (d.d.)
društvo s ograničenom odgovornošću (d.o.o.)
Zakon o trgovačkim društvima - ZTD

11. Compare the US and Croatian business organisations
SOLE
PROPRIETORSHIP
TRGOVAC ____________
PARTNERSHIPS
(association of persons)
general partnership
limited partnership
TRGOVAČKA DRUŠTVA
(društva osoba)
javno _________ društvo
komanditno ___________
CORPORATION*
(association of capital)
C-corporation (larger b.)
S-corporation (smaller businesses, smaller taxes)
TRGOVAČKO DRUŠTVO
(društva kapitala)
_______ ________ (d.d.)
______ ___ _____ _________ (d.o.o.)
*Uniform Commercial Code (S-section / C-section)
Zakon o trgovačkim društvima - ZTD

12. S-corporations and C-corporations in the USA
Using the above link study the main differences
between these two types of corporations.
Make notes:

13. Off-the-shelf company - study the definition
This is a company which has already been registered by an account or lawyer, and which is ready for sale to someone who wants to set up a new company quickly.
Find more information using the link:
Source: 

14. Text complition task, p. 181 Do the exercise VII and
a) fill in the gaps;
Answer the following questions:
1. What can be avoided when choosing off-the-
-shelf company?
2. Who usually forms and sells such companies?
3. Which institution verifies company names.

15. REVISION: Study once again the main features of business organisations in the UK and complete the table on the next slide.
private limited company (Ltd),
public limited company (PLC),
general partnership,
limited partnership,
sole proprietorship

16. Which business entities are these (in the UK)?
Type
Liability of owners
Capital contributions
Management
Unlimited personal liability
By sole proprietor
Business managed
by sole proprietor
Generally no personal liability of the members
No minimum share capital required. Capital can be raised through issuance of shares to members or through a guarantee
By managing director or the board of directors
No personal liability, liability limited to shareholder contributions
The minimum share capital of ₤50000 is raised through issuance of shares to the public and / or members
By the board of directors; shareholders have no power to participate in managem.
of general partners
Partner contribute money or services to partnership and share profits /losses
The partners have equal manage. rights, unless agreed otherwise
Unlimited pers. liab.
Limited partners generally have no pers. liability
General and limited partners contribute money or services, to the limited partnership and share profits /losses
The general partner manages the business, subject to limitations of the Limited Partnership Agreement

17. Make notes which will help you explain to an British / American business partner how Croatian Commercial Code (ZTD) defines the term: Javno trgovačko društvo
Pojam javnoga trgovačkoga društva – Članaka 68
Javno trgovačko društvo je trgovačko društvo u koje se udružuju dvije ili više osoba zbog trajnog obavljanja djelatnosti pod zajedničkom tvrtkom, a svaki član društva odgovara vjerovnicima društva neograničeno solidarno cijelom svojom imovinom.
Član društva može biti svaka fizička ili pravna osoba.