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Types of British firms

The limited liability Company, or joint stock Company, is the com­monest type of firm in the United Kingdom. The company is owned by shareholders, and the term 'limited liability' means that when the full price of a share has been paid the holder has no further liability to contribute money to the company.

The shareholders in a limited company elect a Board of Directors, and these men and women are responsible for looking after the finan­cial interests of those who elect them. The directors appoint one of their numbers to the position of Managing Director, and he or she is the link between the Board, who make policy decisions, and management, whose function it is to execute the policy determined on. Thus the Managing Director is in charge of the day-to-day running of the com­pany, and in large organisations he is often assisted by a General Man­ager. The various departmental managers — the Sales Manager, the Personnel Manager, the Chief Buyer, and others — are responsible to the Managing Director for the efficient running of their departments. British company law requires a limited company to have a Company Secretary.

Another type of firm is the partnership. In this case limited liability does not extend to the whole firm and all partners (even in a limited partnership there must be at least one partner with unlimited liability), so partnerships are very seldom manufacturing or trading firms. They tend rather to be professional organisations such as firms of solicitors, auditors, architects, or management consultants. The names of all part­ners must, in accordance with the law in Britain, be printed on the stationery of a partnership.

Words to remember

Ltd. (limited liability)

PLC. (Public limited company)

USA: Inc. (incorporated)

& Co. (and company)

Boards of directors:

Chairman, USA: President

Managing Director, USA: Chief Executive (CEO)

Sales Manager

Finance Director

Chief Accountant

EXERCISES

1. Design a letter heading for a company manufacturing washing ma­chines, refrigerators and other household equipment. Include all the information about your company which is normally shown in a modern letter heading.

2.Write out the following date in three or four different ways in which it might appear at the top of a business letter: the fourteenth of April nineteen-seventy-eight.

3. Below are names and addresses which might appear — suitably set out, of course - in the top left-hand corner of a business letter. Give the correct salutation and complimentary close in each case:

(a) Burke and Sons Ltd., 55 Inkerman Road, London SE5 8BZ.

(b) The Sales Manager, BGW Electrics Ltd., Liverpool 4.

(c) Mr A. L. Moon, British Rail (Southern Region), London W1M 2BT.

(d) Ms Angela Box, Gorton and Sons, 344 Oxford St., London Wl A 3BA.

4. Which of the organisations mentioned in Exercise 3 should be ad­dressed as Messrs.? Give your reasons for including or omitting Messrs in all four cases