Although many corporations often use attorneys for help with the incorporation process, many new businesses often ignore the ongoing legal requirements to retain their corporate status. Annual meetings of shareholders, directors and associates must be held, in addition to the recording of minutes and the appointment of officers must be in accordance with state regulations. Neglecting corporate formalities could jeopardize a company’s corporate status and lead to lifting the corporate veil in the event of a lawsuit, exposing untouchable company officials to debt or damage. Therefore, a business lawyer plays a pivotal role in corporate governance.
Intellectual property
Every company must legally protect its intangible assets. Some of the features that warrant copyright protection include company name, brand name, logo, and exclusive products and services. Patents not only cover machines and other man-made products, but can also protect procedures or processes, including the method of refining oil or the process of distilling water. A business lawyer can help with copyright, trademark, and patent registrations and help the company protect the assets responsible for its competitive advantage in the business marketplace.
Employment Agreements
Many corporations, particularly technology companies, consider the technical expertise of their staff to be an extremely important asset. However, they fail to protect their employees through non-compete and non-disclosure agreements. Unsurprisingly, several employees will be out looking for new pastures and it is critical to protect your company against such employees so that they do not take their technological expertise to other competitors in the market. A business lawyer is helpful in formulating and supervising the signing of employee agreements in your business.
exit strategies
Entrepreneurs are often so focused on establishing a new business that they forget to think about the scenario in case a director decides to leave the company. When one of the main rules decides to go out unexpectedly, it can have a negative impact on the ongoing operations of the business. A business attorney can help formulate exit strategies such as buy-sell or repurchase agreements for associated companies to allow partners to sell their interest without facing legal trouble or placing unwarranted financial debt on the corporation.
What about the fees of hiring a business lawyer? Well, reputable lawyers don’t come cheap and the same goes for other consultants vital to your business. An investment in a business lawyer can help avoid many problems in the future.