Small business owners are busy people; with so many tasks
and duties to take care of it can be hard to keep an eye on a company’s legal
responsibilities too. If you run a small company it is likely that you have a
modest number of staff which means that many people are doing multiple jobs -
many of which they aren't experts in. Because of this, it is easy for innocent
mistakes to be made when it comes to dealing with the legal side of the
business. While some may be essentially harmless, you need to be aware that a
legal misstep can potentially cause a huge problem for your company in the form
of a fine or even the smooth operation of your business.
Disagreements Between Company Owners
Most companies are founded between two or more parties or
with significant investment. Starting a new business is often challenging, so
spreading the risk and burden of founding a company is usually a good idea.
These people are usually friends, a work associate or family - which can
sometimes make any potential disagreements harder, however. Common issues faced
can include making a major decision in the direction of the business or a
co-founder wanting to leave. To stop this from ever becoming a problem, the
shareholders in a company should sign up to a ‘shareholder’s agreement’. This
document confirms the rights and responsibilities of each shareholder while
putting in place an agreement on what happens if someone wishes to leave the
business.
Employee Issues
When a small company employs staff the new employees often
have quite informal legal arrangements. This should definitely be avoided
though as this could potentially leave you with a big problem if things so
south. Every employee should sign up to a code of conduct, comprehensive health
and safety guidelines, and a contract that features rights and
responsibilities. If your small business is in a sector where workplace
accidents are a distinct possibility, you should make sure that your back is
covered legally.
Poorly Drafted Contracts
There is no overestimating the importance of contracts in
the business world. It doesn’t matter if it is between a partner, customer or
another business - a poorly drafted contract can have huge legal ramifications
that can affect your company and even threaten its existence. When making a contract
with another party you should always ensure that you enlist the help of a legal
professional to make sure that it is watertight.
Hawley And Rogers
Hawley
& Rodgers
are solicitors that have operated in
commercial law for years and have built up a huge body of experience and
expertise to help you in any legal matter. We consider it our goal to provide
expert legal advice in a wide range of issues, including family, children,
wills, probate and property too. If you live in Nottingham or the surrounding
area and
need qualified legal advice then get in touch with us today.
You can email us via
enquiries@hawleyandrodgers.com or telephone one of our
Hawley and Rogers’ local offices
in Nottingham, Loughborough, Bingham, Stapleford
and Long Eaton.
