03Chap01 03/07/2005 10:21 AM Page 14

Part 1 ■ Business law and practice

Exercise 4 – multi-word verbs

Complete the following sentences by entering an appropriate multi-word verb into each blank
space from the selection in the panel below.

contract for negotiate with act for

appeal against decide against enter into

1. The Defendant has decided to the judgment.

2. The judgment my client.
3. We are confident that the Judge will our opponent.
4. He wants to discussions with a view to becoming a director of the
company.
5. He intends to the company to purchase some shares.
6. I have been asked to a newly incorporated company.

Law notes
Characteristics of a limited liability company
■ A limited company has a separate legal personality in law (as established by case of
Salomon v Salomon 1897)
■ A company is owned by shareholders, management decisions primarily being made by
directors
■ Shareholders (members) and directors have limited liability
■ A company must be registered at the Companies Registry (based in Cardiff for compa-
nies incorporated in England and Wales and in Edinburgh for companies incorporated
in Scotland)
■ A company comes into existence upon issue of a certificate of incorporation
■ Documents required to form a company: Memorandum of Association; Articles of
Association; Form 10; Form 12
■ Memorandum of Association indicates: the name of the company; whether it is a
private or public limited company; the objects of the company (which state the purpose
of the company and the scope of its legal capacity to conduct business with outside
parties)
■ Articles of Association provide a set of internal company rules
■ A shareholder’s personal liability is limited to paying fully for shares held
■ A company’s nominal (or authorised) share capital refers to the quantity of shares a com-
pany is authorised to issue (as indicated in the company’s Memorandum of Association)

14
03Chap01 03/07/2005 10:21 AM Page 15

Chapter 1 ■ Company formation

■ A company’s issued share capital (also known as allotted share capital) refers to the
value of shares actually issued (or allotted) to shareholders
■ A company’s paid-up share capital refers to the amount of the total (nominal) value of
the issued share capital actually ‘paid-up’ by shareholders
■ There are various types of shares which a company can issue, including:
1. ordinary shares – usually carrying voting rights and a right to any dividend declared
by the company (i.e. share of any profits made by the company)
2. preference shares – which do not carry voting rights (referred to as non-voting
shares) but provide priority (i.e. a preference) to payment of a dividend
■ Continuing duty on company to maintain annual accounts and to file annual accounts
with Registrar of Companies

Grammar notes
Multi-word verbs
Multi-word verbs consist of a verb and at least one particle. A particle is a word which
would be a preposition or an adverb in a different context. In this chapter you have
encountered several examples of multi-word verbs such as those in:
enter into a contract; comply with the requirements; subscribe their names to.
Multi-word verbs come in four categories:

1. verbs with particles and no object. E.g. Sit down!

2. verbs with two particles. E.g. He gets on with his client.
3. verb  inseperable particle  object. E.g. I’m waiting for the trial.
4. verb  separable particle  object. E.g. He set out the terms / He set the terms out.

List of multi-word verbs

The following is a non-exhaustive list of examples of multi-word verbs used in legal English.

act for appeal against charge with

contract for decide for / against enter into
file for find against legislate for / against
negotiate with / for prohibit from rule against
settle for swear in withdraw from

15