Although many corporations often use attorneys to help them with the incorporation process, many new businesses often ignore 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. Neglect of any corporate formalities could jeopardize a company’s corporate status and lead to the piercing of the corporate veil in the event of a lawsuit at law, exposing untouchable company officers to debt or damages. Therefore, a business lawyer plays a critical role in corporate governance.
Every company must legally protect its intangible assets. Some of the features that warrant copyright protection include the 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 method of distillation of water. A business attorney can help with copyright, trademark, and patent filings and help the business protect assets responsible for its competitive advantage in the business marketplace.
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, a number of employees will be out looking for new pastures, and it’s critical to protect your company from those employees taking their technology expertise with them to other competitors in the market. A business attorney is helpful in formulating and supervising the signing of employee agreements in your company.
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 core rules unexpectedly decides to leave, 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 issues or placing unwarranted financial debt on the corporation.
What about the fees of hiring a business attorney? Well, reputable lawyers don’t come cheap and the same applies to other consultants vital to your business. An investment in a business attorney can help avoid many problems in the future.