Company structure

COMPANY FORM

Organisational structure: municipal law (the national, domestic, or internal law of a sovereign state defined in opposition to international law)®Unique company laws in every country.

Civil law: laws were written into a collection; codified, and not determined, as is common law, by judges. Russia, EU except Ireland & UK.

· Company

o Limited liability company – usually family business; the board of directors makes decisions; once a year there’s a shareholders’ meeting who appoint the BOD, which in turn appoints the managing directors; shareholders are not liable.

· Partnership

o Partnership – 2 or more people personally liable for the business; if the company runs into bankruptcy, they lose their personal assets; no need for initial capital.

o Limited partnership – 1 partner is liable for the business, investors are liable for their investments.

o Partnership limited by shares - The capital and ownership of the company is divided between shareholders who have a limited liability and one or more partners who have full liability for the remainder of the company's debts. The partner(s) will usually direct the operations of the company while the shareholders are passive investors. (Germany)

· Corporation

o Private

o Stock Corporation, EU law: companies that are on the stock exchange must publish their balance sheets every 3 months.

Common law (case law): A law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action (precedential weight®it is unfair to treat similar facts differently on different occasions). UK + former colonies: US, Ireland, Bangladesh, India, South Africa.

· company: as in civil law states

· partnership: as in civil law states

· corporation: public, private or LLC

Company structure

· Representative office - established by a company to conduct marketing and other non-transactional operations, generally in a foreign country where a branch office or subsidiary is not warranted.

· Agent – an independent person who takes offers on behalf of the company.

· Branch is controlled by a parent company under the law of the home country.

· Subsidiary – its shares are owned by a parent company; it’s controlled by it under the laws of the country where S. is located.

· Holding company – a parent company establishes it to control its subsidiaries.

· Joint venture – an association of many companies (esp. when entering new markets & countries); bid projects.

Legal entity – a company is separated from its owners; they are not liable for its obligations.

Company register – check who has the right to represent the company.

Дата добавления: 2015-11-14