Running a business with legal support
When it comes to running a business, there are many important decisions that require the expertise of an experienced and knowledgeable professional. Hiring a commercial, or corporate, lawyer, is one such decision that can make all the difference between success and failure.
A commercial lawyer can help you navigate the complexities of Australian corporate law, ensuring your business remains compliant with regulations while also protecting your interests. From drafting contracts to providing advice on legal issues, having an experienced corporate lawyer at your side will ensure you have the right support when making crucial decisions for your business.
When choosing a commercial lawyer, there are several key considerations you need to make to ensure you select the right legal professional for your specific needs.
Understanding the Role of a Commercial Lawyer
What a commercial lawyer does
A commercial lawyer specialises in corporate law and provides legal advice to businesses on a variety of issues. The role of a commercial lawyer involves:
- researching legal matters
- drafting contracts
- negotiating with third parties
- advising clients on their rights and obligations under the law
- representing them during court proceedings if needed, and
- ensuring that all business activities remain compliant with the relevant regulations.
They may also represent clients in mergers and acquisitions, advise them on intellectual property matters, assist with corporate restructuring, and provide contract advice.
Large corporations or companies may have in house counsel, however smaller firms usually hire a lawyer external to the business.
Finding the Right Commercial Lawyer
When looking for a commercial lawyer to work with, it is important to find one who has expertise in the particular area of law that you need counsel in. You should consider their experience working with businesses of similar size and industry as yours, as well as the types of services they offer.
Once you have identified a few suitable candidates, it is important to meet with them in person to discuss your specific legal needs and ensure that there is a good fit between your business and the lawyer’s practice.
You should also ask about their fees and any other costs associated with their services, as well as any potential conflicts of interest that could arise.
The areas of law a commercial lawyer typically covers
A commercial lawyer typically covers a wide range of areas related to corporate law. This includes drafting and reviewing contracts for business transactions, advising on intellectual property matters such as trademarks and copyrights, providing counsel on mergers and acquisitions, assisting with corporate restructuring, and representing clients in court if needed. Additionally, they may advise on issues regarding consumer protection laws, employment law, taxation, and other legal matters that affect business operations.
The Relationship Between Commercial Law and Accounting
Legal structure and financial picture
Commercial law and accounting are two distinct but related areas of business that must work together to ensure a successful business. Accounting provides an accurate financial picture of the company’s operations, while commercial law governs the legal structure of the corporation or organization, including contracts and other legal documents. Both accounting and commercial law are essential components for any business because they provide important information about the company’s financial stability and legal standing.
The relationship between commercial law and accounting is especially important when a business faces a dispute or lawsuit. In such cases, both sides must provide accurate information about the company’s financial situation and legal structure to resolve the issue. Many corporate lawyers have a good working relationship with accountants with a similar client base which means they can work together to ensure the best resolution for their clients.
When it comes to taxation, commercial law and accounting are also intertwined. Businesses must comply with the tax laws of their particular jurisdiction to remain legal and operational. Accountants help businesses understand their obligations under tax law and provide advice on how they should go about filing taxes each financial year.
Accounting records can help to identify how much money has been spent on goods or services, while commercial law can help determine which contracts are enforceable and who has the right to sue or be sued. Accounting and commercial law also work together to protect a company’s assets, as well as its stakeholders.
By understanding how the two areas interact, companies can better manage their finances and legal obligations to remain in compliance with the law.
Complementary frameworks
Commercial law and accounting are closely intertwined in the sense that they both provide vital information for businesses. Commercial law provides a framework to ensure compliance with laws, regulations, and contracts while accounting also provides a structure and cycle for the company’s operations.
Corporate lawyers work with an accountant to review contracts, draft agreements, negotiate with third parties, and advise on consumer protection laws. Together, they can ensure that a business is legally compliant and financially sound.
For example, an accountant may need to review contracts to determine the financial implications of a potential deal while a commercial lawyer may be needed to ensure all parties involved are aware of the legal ramifications before entering into an agreement. Similarly, both a commercial lawyer and accountant may be needed to advise a business on the negotiation and implementation of employment contracts. In short, commercial law covers the legal requirements while accounting provides financial guidance, but working together they can provide a comprehensive picture that allows businesses to make sound decisions for their future.
Both the law and accounting perspectives contribute to effective corporate governance and risk management which keep a business on track. Corporate governance provides a framework for decision-making that increases transparency, ensures accountability, and protects stakeholders’ interests. Risk management helps ensure that organizations take proactive steps to mitigate losses or other issues before they become unmanageable.
Five Questions to Ask Before Hiring a Commercial Lawyer
Question 1: What is your experience in commercial law?
Asking about a potential commercial lawyer’s experience in the field is important to understand their level of expertise and capabilities. Look for an answer that details the lawyer’s specific experience in commercial law as well as any relevant certifications they may have.
Question 2: Have you worked with businesses similar to mine?
Experience with businesses similar to yours can help ensure your corporate lawyer has an understanding of what your business needs from them, saving potential time and money. A good answer should include examples of other businesses or firms they have worked with as well as how their prior experiences could benefit yours.
Question 3: How do you charge for your services?
Knowing a lawyer’s fee structure upfront is essential for budgeting purposes and helps you get a sense if they are within your price range or not. Ask for specifics on how they charge, including hourly rates, flat fees, or retainer payments versus additional charges when needed.
Question 4: How will we communicate and how often?
Communication between you and your attorney should be clear right from the start to avoid misunderstandings down the line. Find out ahead of time what channels will be used (phone call vs email) and how often you can expect updates on progress made on any cases assigned to them by your company.
On a very practical level, ensure that they explain legal terms and their reasoning in a way that you understand as you will be making decisions and so should be fully prepared.
Question 5: Can you provide references from other businesses you've worked with?
Getting references is always helpful before making any kind of hiring decision.
Local Knowledge and Commercial Law
It is important to hire a commercial lawyer who is familiar with the laws and regulations in your state, as well as more broadly. A local lawyer, or solicitor, is likely to be more aware of the legal environment in which your business operates and anticipate any potential issues that could affect it. This understanding can help guide the strategy for your company’s future growth and success.
Conclusion
When choosing a commercial lawyer, it is important to ask the right questions and ensure they have experience in areas that are relevant to your business. Additionally, local knowledge of Queensland or relevant state laws can be beneficial for understanding how legal issues may affect your operations. By taking these steps you will be able to find an experienced commercial lawyer who understands what your company needs and can help guide its future growth and success.