Lessons 4 · 1 lessons · E. Sariqov, B. Xaydarov. Fundamentals of Economic Knowledge (Economics), Grade 9, 4th edition. “Huquq va Jamiyat” publishing house, Tashkent, 2019
4
Setting up a firm
Textbook: pp. 21–24
GoalUnderstand the steps of opening a firm, the content of the charter and the founding agreement, state registration, and the importance of the firm’s name and trademark.
New words
firm’s charter · firma nizomifounding agreement · ta’sis shartnomasilegal entity · yuridik shaxstrademark · tovar belgisi
Explanation
First the organisational form and the name of the future firm are chosen. Then the firm’s charter is prepared: it records the name, address, aim, kinds of activity, founders, organisational form, the size of the charter fund and the composition of property; every clause must agree with current law. If there are two or more founders, a founding agreement is also made between them: it sets who contributes how much, who manages the firm, how profit is shared and what happens if the firm is wound up. After that the firm is registered by the state and gets the status of a legal entity; today this is done quickly, often online, through public service centres or the my.gov.uz portal. The firm’s money settlements go through a bank. The firm’s name and trademark set it apart from others and make it easier for consumers to recognise its products; they must be registered in the proper way, and one must not use another firm’s name or mark. The Constitution guarantees freedom of economic activity, entrepreneurship and labour and protection of all forms of property.
Worked examples
Three friends want to open a packaging firm called “Bahor Pak”. The charter records the name, address, aim (making packaging boxes), the three founders, the MChJ form and a charter fund of 90 mln so‘m. The founding agreement settles who contributes how much and how profit is shared.
Order: 1) choose the firm’s type and name; 2) prepare the charter and, if needed, the founding agreement; 3) register with the state; 4) open a bank account; 5) register the trademark. If the firm wants to do work not written in the charter, it must first amend the charter.
Class activity
“Let’s open a firm”. Groups invent a conditional firm: name, form, aim, charter fund (a made-up amount) and a sketch of a trademark. They write one page of the charter and the main clauses of the founding agreement and present them to the class. It is a learning game; no real documents are filed.
Practice
1
What information must a firm’s charter contain? Name five items.
name, address, aim, kinds of activity, founders, organisational form, size of the charter fund (any five)
2
Two founders want to agree on firm management and profit sharing. Which document is needed?
the founding agreement
3
The charter fund is 90 mln so‘m. If the third founder’s share is 20%, how many so‘m did he or she contribute?
18000000
4
Why is it forbidden to use another firm’s name and trademark?
Because consumers would be misled into thinking the product comes from another firm, and the real firm would lose reputation and income; the name and mark protect the firm’s identity.