BUSINESS LEGAL ISSUES
Business Law Lawyer Helping You to Minimize Risk
When starting a business, it is important to be aware of certain legal issues in order to minimize risk.
Non-disclosure and Non-compete Agreements
Many businesses consider proprietary information, their list of customers or clients and the skill set of their employees, examples of their most significant assets. However, they neglect to safeguard those assets by means of Non-disclosure and Non-compete agreements with their personnel.
We not only know that business owners would be wise to verify restrictions on their new employees current or past employment agreements but they also must understand any existing provisions or restrictions pertaining to employment law issues. Additionally it is worthwhile to have employees sign written employment agreements that incorporate confidentiality provisions, non-compete provisions as well as any appropriate restrictive covenants.
Business owners place their efforts into establishing a new business and overlook what could happen in the event one of the principals actually leaves the business. Whenever a partner or major shareholder makes a decision that they want out, it could conceivably endanger the capability of the business enterprise to carry on functioning.
Written Partnership and Buy-Sell Agreements
A Partnership Agreement governs the relations of the partners/shareholders between or among each other, their rights, responsibilities and authority and also determines precisely how profits and losses are shared.
The most essential item to distinctly outline is just how many owners are required to sign important papers or authorize actions of the company. Any specific action beyond that authority would require former authorization of additional owners.
In the event that the business has a number of owners, then the business ought to have a written buy-sell agreement if it is not currently part of the Agreement.
Understanding Applicable Local, Provincial and Federal Regulations
Usually there are several levels of laws and regulations that could have an effect on the operations of a business. A business owner would need to have an understanding of most of these regulations.
For the most part business owners start businesses with funds from family and friends. Conversely, numerous business owners attempt to raise money by utilizing the World Wide Web, advertisements in community newspapers as well as other methods. Securities regulators are provided the power under provincial statutes to enforce securities regulation. Failure to comply may result in disciplinary action by the securities commission.
After a business is formed; business owners begin searching for business office space or alternatively retail space. Most do not negotiate an escape clause provision in their lease. An escape clause could possibly provide business owners a potential to terminate their lease in the event specific changes happen in the marketplace or alternatively in their business. Because commercial leases can be complex, always enlist in the aid of an experience real estate lawyer.
Pick up the phone and contact us today by calling 416-848-9815. Our experience Business Lawyers are Available When You Need Us Most!