Loan Agreement

Complete the following discussion between a borrower and a lender about setting up a Loan Agreement. The words to complete the conversation are given in the box below.

account arrears debit decrease payment bank base rate capital conditions increase installment interest loan penalty repay repayment terms

Lender:	So, Mr Brown, we are happy to offer you £10,000 on the following (1) ……………..
Mr. Brown:	Which are?
Lender:	Well, if we go through the agreement together I can explain the (2) ………………..
Mr. Brown:	OK.
Lender:	The (3) …… of the loan includes a (4) ………repayment of £10,000 plus annual interest at the appropriate rate.
Mr. Brown:	I see.
Lender:	And the (5) ……………… can be repaid over 24 or 36 months.
Mr. Brown:	Right.
Lender:	At present, (6) …………….. on the loan will be calculated at 2% above the bank base rate.
Mr. Brown:	OK.
Lender:	And we will collect the (7) ……………..monthly in (8) …………….
Mr. Brown:	And how will you collect it?
Lender:	We will (9) ………it directly from your account.
Mr. Brown:	I see.
Lender:	If you agree to the terms, we can arrange to have the money in your (10) ………. tomorrow. The first repayment (11) ………….. will then be due exactly one month from tomorrow.
Mr. Brown:	Will the repayment amount be the same each month?
Lender:	I'm afraid we can't guarantee that. The exact amount will depend on the (12) ……. . If there is an (13) …………., your monthly repayment will go up; if there is a (14) ……., it'll go down.
Mr. Brown:	And what if I want to repay early?
Lender:	You can (15) ………… the loan early but there will be a small (16) ………., equal to one month's interest.

Director's Service Agreement

Below are the main paragraph titles from a Director's Service Agreement. Link the paragraph titles to the details of the contents of each paragraph.

APPOINTMENT	a	How the contract may be ended.
REMUNERATION	b	Procedures for handling disagreements.
CONFIDENTIALITY	c	Rules about publishing information.
TERMINATION	d	Rules for payment when the director is away as a result, of illness.
PERIOD OF EMPLOYMENT	e	The date when the present contract comes to an end.
NOTICE PERIOD		The fixed term of the contract.
HOLIDAYS	g	The number of working days when the director can be away from work.
SICK PAY	h	The pay package.
GRIEVANCE PROCEDURE	i	The period of advance notice required to terminate the contract.
HOURS OF WORK	j	This describes the title and general employment of the director.
EXPIRY OF APPOINTMENT	k	When and how the director is expected to discharge his/her work duties/duty.

Consultancy Agreement

Consultants, like directors ,are not company employees. A consultant provides services as an independent advisor to a company. A Consultancy Agreement is drafted from the company's perspective and sets out the obligations of the consultant.

The clause dealing with 'duties' is central to the agreement. Below are extracts from this clause. Each missing word is derived from the word in brackets.

DUTIES

2.1 Subject as hereinafter provided (provision) and except at such times as the Consultant may be incapacitated by …………….. (ill) or accident, the Consultant shall devote such of his time, ………. (attentive) and skill as may be necessary for the proper discharge of his duties, save that nothing in this Agreement shall require the Consultant to devote to his ………….. (oblige) under this Agreement more than 60 hours ……………… (month).

2.2 The Consultant shall keep the Board of Directors of the Company ('the Board') …………. (information) of progress on projects in which the Consultant is engaged and shall produce …………… (write) reports on the same from time to time when so …………….. (request) by the Board. While the Consultant's method of work is his own, he shall comply with the …………… (reason) requests of the Board and. shall work and co-operate with any ……………. (serve) or agent or other consultant of the Company.

2.3 The Consultant will not during his ……………… (engage) [and for a period of twelve months thereafter] undertake any ……………… (add) activities or accept other engagements which would …….. (interference) with or preclude the ………..(perform) of his duties under this Agreement or which lead to or might lead to any conflict of …………….(interesting) between the Consultant and the best interests of the Company.

Introduction to company law

The following text introduces the area of company law. Complete the text by using the words in the box below.

agreements borrow corporations court debts dividends employees legal legislation liability limited objectives partnership profits property registered (x2) shareholders sole trader sue

A company is a legal entity, allowed by ……….., which permits a group of people, as …………. , to create an organization, which can then focus on pursuing set …………. . It is empowered with legal rights which are usually only reserved for individuals, such as the right to ……………… and be sued, own ……….. , hire …………… or loan and ………….. money. The primary advantage of a company structure is that it provides the shareholders with a right to participate in the…………….. , a proportionate distribution of profits made in the form of a money payment to shareholders, without any personal …………………

There are various forms of legal business entities ranging from the ………….., who alone bears the risk and responsibility of running a business, taking the profits, but as such not forming any association in law and thus not regulated by special rules of law, to the ……………….. company with …………… liability and to multinational ……………….

In a ……………….. , members 'associate', forming collectively an association in which they all participate in management and sharing ………………, bearing the liability for the firm's …………… and being sued jointly and severally in relation to the firm's contracts or tortious acts.

Limited-liability companies, or corporations, unlike partnerships, are formed not simply by ……………. entered into between their first members; they must also be ……………. at a public office or ………….. designated by law or otherwise obtain official acknowledgement of their existence.

Registration of new companies

Match the following titles from the regulations for registration to the extracts from the details.

Titles

	What are articles of association?	c
	Can anyone be a company director?
	What company types are there?
	What is the minimum number of officers a company requires?
	Who can form a company?
	Can I choose any name I want for my company?
	How do I form a company?
	What is a registered office?
	What is a memorandum of association?

Extracts from the details

a	One or more persons but a public company or an unlimited company must have at least two subscribers.
b	It is the address of a company to which Companies House letters and reminders will be sent.
c	This document sets out the rules for running the company's internal affairs.
d	By sending a memorandum of association, the articles of association, the details of the directors and the company secretary, and a 'statement of legal compliance.
e	On condition that you are not: • an undischarged bankrupt or disqualified by a court from holding a directorship; • over 70 years of age.
f	This document sets out the company's name, the address of the company's registered office and the object of the company.
g	Private companies limited by shares, private companies limited by guarantee, private unlimited companies, public limited companies.
h	You cannot: • register the same name as another company; • use certain words; • use names likely to cause offence.
i	Every company must have formally appointed company officers at all times. A private company must have at least: •one director; • one secretary - formal qualifications are not required. A company's sole director cannot also be the company secretary. A public company must have at least: •two directors; • one secretary - formally qualified.

Date: 2015-01-12; view: 4126

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