Most people are familiar with criminal lawyers and what they do. These lawyers represent their clients when there are issues like divorce, property fight, and personal disputes. However, most people don’t have a good understanding about corporate lawyers and what they do. In this article, we will look at some of the key reasons why companies hire lawyers.
Mergers and Acquisitions
Mergers and acquisitions are growing at a fast rate. In the United States, many industries have been consolidated. For example, the air industry in the country is dominated by less than 5 airlines. The same is true with the music industry. When companies merge or when large one acquires small ones, it leads to the need for the need for lawyers. These lawyers represent the two companies to ensure that everything is done in accordance with the law. Failure to using a lawyer can have significant legal implications to the company. There are many examples to this situation. For example, when Bayer acquired Monsanto, Bayer’s lawyers failed to see the implication of the ongoing litigation about Roundup.
Intellectual Property Protection
Companies have intellectual property that can be copied and replicated easily by other companies. Companies use a significant part of their revenue to develop these intellectual property and trade secrets. Therefore, when the IP is stolen, it could lead to significant losses. For this reason, companies always have a lawyer to help them protect their IP. A good example of this was the patent fight between Apple and Samsung.
Companies are also sued. In recent years, we have seen this issue become very pronounced in the US and in Europe. For example, Apple is currently in a tax fight in Ireland, where it is accused of not paying taxes. In the US, a company known as Purdue Pharma has been sued by state attorney generals who accuse it of causing the opioid crisis. Other companies that have been implicated are the likes of Johnson & Johnson and Merc. In all these types of litigations, the role of lawyers becomes very important. Other types of company litigation are:
- Employee -company conflicts.
- Breach of contract cases.
- Shareholder disputes
- Product liability cases
For a company to operate in any country, it needs to be registered. To be registered, the company needs to ensure that the law is followed. For example, to launch a forex trading company or an asset management firm in Cyprus, you need to ensure that the law regulating the industry is followed. To ensure that all this happens, the best thing companies do is to hire a lawyer. This is because the lawyer has the experience, knowledge, and expertise to ensure that the law is followed.
Companies are required to follow government regulations. In the United States, the industry is being deregulated. At the same time, in the European Union, the various industries have been under intense regulations. For example, the finance industry is currently going through massive regulations. The latest of such regulations is the MIFIID regulation, which is made up of more than a million pages. Companies that don’t comply with the regulation can be fined millions of dollars. Therefore, lawyers can help companies be compliant to all laws and regulations. In fact, some laws demand that all companies must have lawyers in place to oversee compliance.
In many occasions, companies require immigration services. For example, when a company is starting operations in another country, it might want some of its staff to travel there to oversee operations. In addition, a company might need to hire employees from another country. In these situations, the company needs a lawyer, who will help it ensure that immigration issues are complied to. For example, in Cyprus and other countries, it is possible to get a passport if you invest a certain amount of money. A Cyprus corporate lawyer can help you handle a Cyprus passport by investment.
Companies work using contracts. In this, they develop contracts to ensure that the other parties abide by the agreements. A person who is not a lawyer cannot formulate a good contract. Therefore, companies seek qualified lawyers to formulate these contracts.
In this article, we have looked at the various reasons why companies need corporate lawyers. These lawyers are also known as company secretaries. As you have seen, these lawyers are so important for the existence of the companies. Indeed, this is the main reason why companies allocate a substantial amount of their income on an attorney.