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SOLICITOR
IN CHARGE: TOM FITZPATRICK
Member:
Lawyers for Your Business
Please
also see
Commercial
Property Wills Enduring
Powers of Attorney Litigation
There
are many legal matters to be considered when starting a new business.
This
page will help you to set your agenda with your solicitor by telling
you how FitzPatricks will approach the questions you want to ask.
That saves money.
- Challenges
- Getting
the brilliant idea off the ground with the minimum of cost.
- Keeping
the business growing profitably and expansively. This
involves understanding how many people (called stakeholders)
have an interest in the well-being of the business and then
identifying them.
- Recognising
that many viable businesses fail because, while so much effort
goes into manufacturing, staffing, selling and premises, there
is little time for getting administration right. But it has
to be done and the sooner the better, because the risks become
greater as the business grows.
FitzPatricks
approach your business from your viewpoint, not ours, and
with the same enthusiasm that you have.
- Starting
Up
- For many
new businesses, the initial involvement of solicitors is restricted
to deciding whether a company or a partnership is needed. That
advice is needed, but FitzPatricks can do more.
- The general
belief is that solicitors are useful only when problems arise.
We are really useful in helping to ensure that problems are
squashed before they start to become troublesome and interfere
with cash-flow and running the business.
- At FitzPatricks,
we do not believe in problems. We believe in challenges, as
you do, or you would not be starting your new business. A challenge
means knowing where the winning post is and that you can reach
it. A problem is something which cannot be defined, so there
is no apparent way of starting to deal with it. FitzPatricks
can help you turn a problem into a challenge and then signpost
the way to solving it.
- At FitzPatricks,
we also believe in solutions. Not merely do we work with you
and the other members of your team, accountants for example,
but we are able to advise on where the challenges may come from,
then help you to minimise the risks. We can, if you want, help
set up the team of advisers. If you do not have an accountant
already, you will need one very quickly.
- We can
advise you on the contracts you will need and help you prioritise
them. We also prepare them.
- Your challenges
come from the many people having an interest in your business.
They are called 'STAKEHOLDERS'
Note:
It is important for the owners of all businesses to consider
their wills to make sure that there is power for executors to
manage businesses in the short term and to ensure an orderly
change-over to new management. This helps to protect the business.
Also,
an Enduring Power of Attorney should be considered to appoint
Attorneys to act in the event of an accident or medical crisis.
- Stakeholders
and Power
- 'Stakeholders'
is the new buzzword. It goes to the Seat of Power because
it affects everything that you are trying to do and your power
to run the business the way you want. All stakeholders need
close attention because they can hinder as well as help. We
now even have to worry about stakeholder pensions.
- Stakeholders
need your business to do well and can be vengeful if it does
badly.
- Some stakeholders
have more funding than you have. If a dispute arises, and however
hard we try, this does mean that with their deeper pockets
they
can impose their financial will on you if the matter in dispute
is not cut and dried. That is why we are keen on getting your
contracts right.
- At FitzPatricks,
we enjoy preventative law, by taking steps before the disputes
happen to cut the risks down and leaving you to do what you
are good at – making money, cutting down the arguments you can
well do without and avoiding the stress of dealing with your
lawyers as well as those of your opponents. This is a matter
of drafting contracts. Of course, if a difficulty does arise
we can work with you to help you solve it.
- In the
majority of cases, where disputes arise, we can work with you
through our litigation department to help solve them. Go to
LITIGATION
How to avoid
the Lawyers:
- Relations
between owner and other stakeholders do create tensions. This
is particularly so at the start of a business when cash flow
must, at all costs, be maintained. The owner may be prepared
to take less money out of the business in return for future
prosperity but other stakeholders may not feel the same. The
question for the owner is how to deal with the other stakeholders.
It is often best to agree these matters before you start. Good
relationships are vital.
- Virtually
everything the business does, and every relationship it has,
is a contract – few contracts need be in writing. Not
all contracts may be legally binding. For example, a letter
of intent is not a contract, but most other things are. If contracts
are not in writing, and matters result in a dispute, the question
that will arise is who said what to whom. Sorting the
answer to that question is a Lawyer’s Bonanza. Better,
by far, is to get the contracts in writing, as soon as time
and money allow, if not sooner.
There follows
a list of stakeholders. Against each are examples of the
types of commercial contract which concern that relationship.
- the owner,
spouse and family; - articles of association, directors’ service
agreements, partnership agreement or shareholders' agreement,
pensions;
- the staff;
- contracts of employment, compromise agreements; pensions;
- the bank;
- loan agreements, mortgages on homes or business premises; unsecured
loans; personal guarantees; factoring agreements;
- the customers;
- sales conditions; franchisors’ agreements; consultancy agreements;
- the suppliers;
- purchase conditions; franchisees’ agreements;
- the landlord;
- leases and tenancy agreements;
- the credit
reference agency; litigation relating to accuracy of information;
- shareholders
(if any); - articles of association, shareholders’ agreements;
- partners
(if any); - partnership agreements; confidentiality agreements;
- debtors;
- litigation to recover money, compromise agreements; factoring
agreements;
- creditors;
- action to stave off litigation, compromise agreements;
- professional
advisers; client care agreements;
- Insurers;
- life and keyman cover, premises, contents, public liability
and product liability cover.
- anyone
else with whom the organisation does business or has a financial
interest in the success of the company – miscellaneous, but don’t
forget taxman and vatman.
FITZPATRICKS
CAN PROVIDE COMMERCIAL DOCUMENTS FOR YOU OR CONDUCT AN AUDIT OF
YOUR EXISTING CONTRACTS AND PROCEDURES– WE CAN ADVISE YOU ON NEW CONTRACTS YOU
ARE ASKED TO SIGN AND NEGOTIATE CHANGES IF YOU WISH.
Well-written
agreements can make the difference between positive and negative
cash flow, between having and avoiding disputes, between acceptable
and unacceptable legal bills – theirs as well as yours. See also
litigation –
Your other
advisers
You
get the best from your advisers if they can work together with you
and with each other. FitzPatricks believe in teamwork.
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