Ottawa Business Lawyers
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Businesses are expected to follow the myriad laws set by the authorities. Therefore, whether small or big, businesses need an Lawyer to ensure they function properly and are compliant with the set laws. Issues such as property purchases and preparing taxes require legal help. Disputes and litigation require law expertise to prevent serious consequences, as well. This is where business Lawyers come in handy. They offer legal help to businesses. Below are other important benefits of hiring a business Lawyer Ottawa organizations can trust.
A Lawyer Will Provide Your Business with Advice
Business Lawyers help business owners to understand different legal issues, such as lawsuits and legal violations, that might impact their operations. They provide the required advice and legal guidance to help you come out of the legal situations or avoid breaking the law in the first place.
A Lawyer Can Facilitate Dispute Resolution
A business may fall into conflict with other establishments. In such instances, a business Lawyer will come up with legal options that are helpful to both parties. Note that litigation takes time and costs a lot of money. This is why it is vital to opt for mediation and arbitration. According to various reports, only 4% of cases of personal injuries are resolved through the court, while 96% are settled through negotiation. These private negotiations and conflict resolutions are preferable for a number of reasons -- and your Lawyer can help you achieve a favorable outcome.
A Lawyer Will Help Businesses Stay On Top of Legal Changes
With laws and regulations changing every day, it is quite hard to fully understand what is required of you as a business owner. This is where the business Lawyers come in handy. They help you to avoid violating the law. Business Lawyers also help to negotiate legally binding agreements such as partnerships agreements and leases. Essentially, a business Lawyer ensures that everything you do is in line with the law.
A Lawyer Can Navigate the Legal System
At some point, you may find yourself on the wrong side of the law. A business Lawyer will help you deal with legal problems as they arise. If you're facing a lawsuit, a Lawyer can ensure your rights are protected. An adept Lawyer can even tilt the dispute to your advantage. A business owner should never try to handle any legal disputes on their own, as this can end very poorly.
A Lawyer Can Connect You With a Specialist
If you are in need of specialized assistance, business Lawyers can refer you to the right professionals. Some cases, such as complicated tax matters, may require extra help. Lawyers are well-connected can direct you to a specialist who can provide guidance and assistance for all your business needs.
A Lawyer Can Help You Avoid Mistakes
Running a business is associated with numerous legal pitfalls. You are susceptible to making legal mistakes, regardless of whether you’re a rookie or an experienced business person. A good business Lawyer is well versed with business knowledge and pitfalls that you may come across. A business Lawyer helps you avoid major problems, some of which you may not even be aware of. Employment lawsuits can put your business profitability at risk. It is much better to prevent lawsuits before they occur instead of dealing with them later.
A Lawyer Can Ensure Your Contracts Are Sound
One of the most important things for a business is to ensure they have solid contracts. Otherwise, other entities may take advantage of incomplete or vague agreements. Solving cases that come as a result of this sloppiness can be very costly. Business Lawyers help to draft airtight agreements, hence avoid future disagreements and potential losses.
A Lawyer Can Make It Easier To Get Paid
Dealing with some partners, clients, and business associates can be quite stressful. Some people are reluctant to pay for services or supplies. If someone owes you money and they do not show commitment to pay you, consider using your business Lawyer. Ask the Lawyer to send a request on your behalf. Business Lawyers will not only motivate debtors to pay you, but they also know the steps to take in case they totally refuse to pay.
Businesses both small and big needs to have a business Lawyer. Corporate Lawyers do not only deal with lawsuits but also can help you with drafting contracts and operating the business in line with the law. They may also allow you to avoid costly legal action. For more information, please contact our firm today.
Frequently Asked Questions
Acquisition of a Business - Do such contracts affect the decision to acquire shares or assets?
I am considering the acquisition of a business. Long term contracts between the business and third parties are important to the business. Do such contracts affect the decision to acquire shares or assets of the business?
There are a number of factors to be taken into account when purchasing an existing business including tax, liability, due diligence and employee matters. Your question relates to the contracts between the business and third parties. These contracts may include rights obtained by the business necessary to carry on the business, such as licenses or franchises, or the benefit of sale or service agreements for the supply of products or services that generate revenue for the business.
A fundamental difference between an asset purchase and a share purchase is that in an asset sale the contracts must be assigned (along with the transfer of assets) while in a share sale the contracts remain intact (since only the shares of the business itself are transferred).A comprehensive review of all important contracts is advisable as early as possible during the due diligence process to determine rights and obligations. If third party consents are required, consideration must be given as to the risk that such consents may not be available in a timely manner, or at all, and whether the transaction may be better structured to avoid the necessity for assignment. In some less common circumstances there is an outright bar to assignment and consents cannot be obtained (this is the case in some government procurements). The acquisition of the business in such circumstances may only be achieved through a share sale to avoid termination of such contract(s). It should also be noted that some contracts contain provisions that deem a change of control from a sale of shares to be equivalent to assignment, and triggering the necessity for third party consent.
Do I really need to have annual minutes?
I have a corporation the shares of which are held only by me and members of my immediate family. Do I really need to have annual minutes?
If your corporation is audited by the CRA and matters, such as the declaration of dividends, have not been formally documented by a written resolution of the directors or in annual minutes, the consequence can be severe. There are other risks that may be avoided by having minutes prepared annually. This is analogous to your dentist who encourages you to have good dental hygiene and periodic check-ups so that small problems do not become big problems. Practicing good corporate hygiene just makes good sense.
The minimum legal obligation of a corporation is to hold an annual meeting of shareholders to consider the financial statements, elect directors and to appoint (or dispense with the appointment of) the auditor. In practice, and as permitted by statute, narrowly held corporations often dispense with an annual meeting in favor of signed resolution of all of the shareholders. The failure to hold annual resolutions, or obtain written resolutions in lieu, can lead to legal action from disgruntled shareholders.
The practice of holding annual meetings (or resolutions in lieu) also tends to ensure that corporate matters requiring attention are addressed, such as share transfers, changes to directors, and address changes, which if left unaddressed could become significant problems.
An effective method of ensuring good “corporate hygiene” is for the corporation to instruct its accounting advisors to provide legal counsel with an annual letter of instructions to document applicable financial matters.
It is not uncommon that a new client brings us a minute book that has not been properly organized, or that has not been updated for many years. It is not a cause for embarrassment. We strongly encourage that the minute books be updated before an issue arises, such as a CRA audit.
Should a lawyer review your small business contracts?
I run a small business and I have several small contracts that I am currently in the process of negotiating. Are these worth bringing to a Lawyer for review?
Depending on the type of contract, there are a number of areas a Lawyer’s expertise can provide guidance, including contracts relating to employment or contractor relationships, borrowing and secured transactions, equipment leases, and other commercial agreements. Simply because a document is short, this does not mean there aren’t important clauses or terms that require careful consideration.
Contracts often contain important clauses relating to the limitation of liability, indemnification, and the waiver of important legal rights. Such clauses can have legal and financial implications for you or your business down the road. Understanding these implications is crucial and one of the services a Lawyer can provide.
A Lawyer can meet with you for a short consultation in order to review your contractual document and answer any questions you might have. By communicating to the Lawyer your expectations of the proposed contract, a Lawyer can work with you to achieve your goals as well as highlight and help you understand risks and liabilities that you or your business may be taking on as part of the contract.
If you have some questions about a contract and feel you may benefit from meeting with a Lawyer call and ask to set up a meeting.
