Similar to other fields of law, corporate law has its complexities in interpretation and application to business people. This necessitates the need to enlist the services of a lawyer to assist in evaluating the provisions of the law governing corporations in normal running of a company. The law mainly affects the legality of incorporation, management and the relationships between various stakeholders in a company.
A suitable lawyer for this job should have a specialization in business or commercial law. Legal services on business matters are available from individual lawyers as well as law firms. In both cases the rate charged for the service and the reputation of the lawyer or law firm can be used as a selection criterion.
The services of the lawyer will be required in all areas where the business law is explicit in application. The lawyer is not a member of the management and therefore only serves as an advisor on the acceptability of management decisions for a legal perspective. He then sets a legal framework for implementation in line business law and the company’s policy.
The law is very explicit on the process of registering a company. The lawyer helps the clients to understand the provisions of the different clauses and in preparation of the necessary documentation. He is able to do this since he is conversant with the requirements at the registrar of companies.
Some of the aspects relating to registration that require the attention of a lawyer are composition of board of directors, shareholding and the management systems. The law sets specific numbers of parties who can form a particular corporation. There are also provisions to protect the interests of the shareholders.
A company is independent from its owners and stakeholders thus, is recognized as a legal entity. The company therefore can enter into contracts, transactions and agreements with its stakeholders, employees and other companies. The lawyer handles all the documentation and advices the company on the benefits and risk level of a proposed contract before it is signed.
The legal status assigned to a company means that it can be sued and asked to appear in curt to answer charges against its operations, transactions and decisions. The lawyer answers any court summons to defend the company against any charges. His role in the case is to acquit the company off any action that contravened the business or state laws.
State laws and regional by-laws have certain legal specification to be adhered to by companies seeking to operate in their area of jurisdiction. It is the role of the lawyer to help the client understand the provisions and ensure that the company regulations are in line with the restrictions. This is especially necessary with oversees business prospects.
The attorney is a legal symbol in the company therefore, he will be the primary consultant even in matters that are not within the scope of corporate law. He is likely to be sought for advice on insurance policies, bankruptcy and liquidity and taxes. He may also be sought to advice on inter-state laws when a company has interests beyond the borders.