1 A lawyer is giving a pro-bono talk to a group on the basic types of shares and the advantages and disadvantages of each type. Look at the slides he is the presentation and discuss the differences between these types of shares. Redeemable non-voting Pret) Cn ns El are paid as dividends emo aS a bee alr Crd Peete eee nat ee) eect eee oar) y payable out of be given priority on return of capital ECM ene ttc Deferred ordinary shares Ey dividend first CC mE) Dee Ee eau Baar) Management shares eee a eR] rights een onan Rca cng no eed individual share or lower nominal value for ene ST ee aga eu eotooh no Sor foyer oy Oe eee a and Citar Mo) ere 76 @ Company law 22 Read th transcript of his talk and put the slides in the correct order. First, I want to talk about shares that are mainly used to keep a tight rein on things. They are useful in that the more that you have, the more powerful you are. They don’t suit everyone, only those with a strong interest in how things go for the company. The next ones are really useful if some of your workforce want to leave the company. They can also be useful as an incentive for the members of the workforce, because they can be used as a reward for employees where dividends may be paid in addition to their salary. After that, we have shares that mean you'll definitely get some sort of dividend, but it’s not a fixed amount, and this type of share may vary, depending on the specific structure of the arrangement between the company and the shareholder. The fourth type we have are where you're guaranteed a fixed dividend depending on the percentage stated in dhe preference share — and what you get really depends on how things go. You may get more of a dividend, or you may have more rights if things go really well. If you're investing in this type of shares, you need to look carefully at what's in it for the company and what's in it for you. Finally, this class of share really depends on each individual situation, but it is really useful if two companies are entering a venture together. In this situation, the new shares created will give investors and shareholders protection, and the company documents may mean that a new director can be given these shareholdings. There are no hard-and-fast rules, It really depends on what's in the company Articles, Thank you all for your patience; I hope I've been able to give you a rough outline in order for you to make an informed choice. 3 Read the transcript again and check any unfamiliar words. In pairs, take ‘turns to choose a slide and describe the shares it illustrates in your own words without saying which slide you've chosen. Your partner must guess which one. Listening 1 Discuss these questions with a partner. 4 How cat ¢ company bunow money w get it Unvugh a difficult financial pertod? 2 Explain the meaning of these terms, @ recession ‘© repayment © lending institution © share capital © default © charges @ securities 8 Company law 2 78 PEER) «= a complete the sentences below with the correct form of the phrasal verbs in the box. 8 Company law z 2 You are going to hear a conversation between a lawyer, Math, and a corporate client, Helen. 2 S¥.@ 8.1 tisten to the first part of the conversation. Why is Helen contacting Mark? ro Ox2 statements isten to the second part and correct the incorrect, 1 Helen can make this decision herself. 2 Mark thinks raising share capital is the best option. 3 Helen should consider borrowing. 4 Marks thinks Helen has a strong company. 5 One answer might he to borrow from people within the company on an informal basis. «AVOa3 isten to the third part and complete this sentence. {A debenture sers out the (1) ofa loan, dre @). borrowed, repayment (3) ___, changes (4) the loan, 6) for protecting and insuring the property, and terms for (6) ______ ifthe company (7) 6 £¥.@ 844 Listen to the final part. What is Mark's final advice about charges? getback get through goabout gotor gounder run by setout take through 1 Several companies have because of the recession this, year, and others are on the verge. 2 Thanks for the advice. Il 8 ___ my colleagues at our next meeting, 3 We received a letrer which — all the relevant terms and conditions very clearly. 4 I'm sorry I couldn’t to you yesterday, but we had a few problems with our email. 5 I'd be grateful it you could tell me how to shares in the company. - buying 6 The lawyer all the options before advising us on the most appropriate action to take. ‘The company's definitely strong enough to the next financial year. 8 Which type of shares are you going to __ r b Write four more gapped sentences using the phrasal verbs above for your partner to complete.