Benefiting from legal advice As your business keeps growing and you begin to diversify to other areas, you need to seek the services of a good lawyer to handle the legal aspect of the venture, IFE ADEDAPO writes Regardless of the nature of your business, either you deal in the services, retail or manufacturing sector, experts say legal advice is indispensable at different stages of the venture. According to them, there are certain circumstances, which cannot be handled solely by the owner but will require the services of an experienced lawyer. Moreover, they say lack of experience by some entrepreneurs and failure to engage the services of experienced attorneys, who will give them guidance at every stage, have been identified as reasons why many businesses collapse shortly after starting. The success of your business, according to experts, may be dependent on the legal advice you get from your lawyer when disputes arise. Experts say corporate lawyers’ role in business management is not limited to protecting the business against lawsuits, giving advice on applicable laws and ensuring compliance, assisting with negotiating business acquisitions, and other transactions. They say most entrepreneurs underestimate the role of a legal representative, thinking it is unnecessary. But regardless of the amount lawyers charge for their services, the reality, according to them, is that a lot of time, energy and money are saved when attorneys are involved in business decisions and transactions. Experts have identified the key roles played by solicitors for every kind of business. They include: Business registration A lawyer with Aabo Olabisi and Co. Chambers, Mrs. Funmi Bambeke, says in order to establish a business as a legal entity, it has to be registered. Doing this, she says, ensures its sustainability, growth, credibility and provides numerous profitable opportunities. According to her, a business owner requires the assistance of a lawyer at the start of the business to establish and build a solid organisational structure for the company. To achieve this, the business will be registered with the Corporate Affairs Commission with the help of a lawyer who will provide the advice on government’s compliance policies; and help in obtaining the right permit and licences. In the choice of business name, the lawyer can give advice. She says, “The name of the business is very important because it must not be the same with any government agency. And in obtaining a patent, which is always complex and time consuming, a patent lawyer can help to evaluate the product.” Business partnership The saying that two good heads are better than one also applies to businesses; this is because having access to funds will be easier under a partnership arrangement. Besides, experts say a combination of knowledge, skills and creative ideas from the partners will propel the business into the right direction. According to Bambeke, to enter into any partnership, a business owner has to take precautions to avoid risks associated with it. Therefore, she says business managers need to conduct due intelligence on previous business dealings of the partner and cases of litigation or criminal record. Afterwards, a partnership agreement should be drawn up by a business attorney to protect it against any loss. According to her, the agreement is a legal contract that states the rights and obligations of each partner, the sharing formula of profits and losses, and other issues that will protect the partners’ interests. Drawing up a contract Experts say a contract is a legally binding document between two or more people, which comprises three elements: offer, acceptance and consideration. Bambeke says a contract is drafted to protect the clients in the venture they are going into. She says the statement in a written contract comprises terms and conditions of the business, using words without ambiguity. Since a contract is made up of many clauses, an attorney is required to analyse, interpret and break down the words into simple and understandable language for the business owner to comprehend. Settling tax issues Payment of multiple taxes has been affecting the sustainability of businesses in recent times. In preventing huge expenditure on accumulated taxes, experts suggest consultation with professionals in this area. They say adequate knowledge of when, where and how to pay tax will reduce the impact of non-compliance for all stakeholders. Litigation A survey by an online marketing research firm, Decision Analyst, on small businesses, showed that a shocking number of them had most of their legal issues centred on debt collection. It stated that 20 per cent of the respondents said they needed contracts and documents checked to protect their company; and nearly 10 per cent said they had to deal with contractor or supplier disputes, Internet security breaches, product liability issues, employee theft, tax audits, employee confidentiality issues, and threats of customer lawsuits. However, all these can be handled by a qualified and experienced attorney. Regarding the qualities of the lawyer, Bambeke provides a guide on what a business owner should look out for. She says, “You should ensure that your lawyer is registered with the Nigerian Bar Association because these days, there are a lot of people out there professing to be qualified when they are not. Therefore, ensure that your legal issues are handled by a qualified person. “A good lawyer should have a good understanding of the law and be versed in the business to be represented.” Bambeke says an example is when a company is into the production and marketing of a high-tech product, the company lawyer should also have an experience in handling cases related to technology. According to her, a good lawyer should have excellent negotiation skills to handle business deals on behalf of the owner. A good negotiator should be a good listener, an apt and smooth communicator, she adds. Copyright PUNCH.All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH. Contact: editor@punchng ift.tt/1kXZRLo ift.tt/XYxcev [[Boost your social presence with NAIRALIKES nairalikes ]] #nigeria x #nairalikes #vanguardng
Posted on: Tue, 12 Aug 2014 01:39:49 +0000
Trending Topics
Recently Viewed Topics
© 2015