DOES YOUR COMPANY NEED A LEGAL CHECKUP?

By | March 23, 2015

For any of us who own a business, we face a variety of known and unknown risks that can range from simply presenting a hiccup all the way to an event that might potentially impede our ability to move forward as a going concern!

Hopefully none ever come to fruition but, the question still remains of how prepared we are as business owners if one actually does arise?

This guest article by Lee Schwartz will help you answer the question, ‘DOES YOUR COMPANY NEED A LEGAL CHECKUP?‘…

Would a lawsuit or other unexpected legal issues have a negative effect on the continued success and viability of your company? A Legal CheckUp is a preventative tool which will reduce the liability exposure of your company. Unexpected liabilities arise from the use of outdated forms, failure to be aware of new laws, or not having proper agreements or policies in place. A Legal CheckUp will identify issues your company may have and suggest ways to reduce the risk of potential problems.

Benefits of a Legal CheckUp

The benefits of having a Legal CheckUp is to inform you of any risks your company faces and how to mitigate those risks. The Legal CheckUp will suggest agreements, procedures and policies that need to be put in place or revised to ensure your business remains successful and profitable. Specific benefits of a legal audit include:

  1. Reduce future legal costs and allow you to retain more of your profits;
  2. Increase the value of your business if and when you want to sell it;
  3. Educate you about unknown risks relating to your business operations;
  4. Identify agreements you should be using as part of your business, and update existing agreements to ensure maximum benefit and liability protection;
  5. Alert you to laws that impact your business to ensure future compliance and avoidance of fines or penalties for violations;
  6. Avoid personal liability for corporate obligations; and
  7. Prevent the loss of protections afforded to intellectual property of your company.

Mechanics of a Legal CheckUp

Step 1: Review existing business agreements and other company documents, such as those used with customers, employees, distributors and suppliers, terms & conditions of sale, and between the owners.

Step 2: Discuss your company’s regulatory environment, known future legal issues and common legal problems in your industry.

Step 3: Interview with a firm attorney

Step 4: Preparation of a written report providing you with a diagnosis and a prescription for actions you should consider.

Step 5: Follow up meeting or conference call to discuss the results.

A Legal CheckUp is good business and the risks of not conducting one are too high to ignore. A Legal CheckUp will lay the foundation in your company for the establishment of an ongoing legal compliance and prevention program.

It is important to note if an attorney conducts the Legal CheckUp, the results are confidential under the attorney-client privilege.

Lee A. Schwartz, Esq. has practiced law for over 20 years in the areas of corporate and real estate law, and all aspects of trusts and estates. Clients refer to him as a “deal maker,” who is accessible, responsive and more than thorough.

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Michael Haltman, President of Hallmark Abstract Service, New York.

HAS is a provider of title insurance in New York State for residential and commercial real estate transactions.

And, for anyone either buying a property or refinancing, remember that although your attorney will likely recommend a title insurance provider you always have the right to choose your own (click here to learn more)!

If you have any questions you can reach Michael by email at mhaltman@hallmarkabstractllc.com.

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