A common misconception among business start-ups that a young business does not need a lawyer can lead to financial losses and even destroy the business. Today, every entrepreneur must understand how the legal service of an organization is created and works. There are commercial law services in Armenia which can help you from the beginning of the business.
Small and medium-sized enterprises require legal assistance now more than ever. Based on the results of prosecutorial activities, there is an increase in the number of cases of violation of the rights of business entities – from 152,807 in 2019 to 165,548 in 2020 (an increase of 8.3%). The situation is aggravated by common misconceptions of novice businessmen: the company is young, we have not yet accumulated debts, and state bodies with inspections will not yet come.
Legal Marketing
And here is what D.V. Zasukhin writes in his book Legal Marketing: “Unfortunately, we are very lazy and inert. Let’s be honest with ourselves and admit that we don’t like solving problems. Maybe it will go like this? This statement is true not only for business. Remember how you visited the dentist? Few of us sign up for prophylaxis every six months and, at the first symptoms, run to the dentist’s office. Most of us put off solving the problem until the last … “
However, such a frivolous attitude is extremely dangerous. Due to the rapid change in legislation, it is difficult for a non-professional to keep track of innovations, and as a general rule, ignorance of the law does not exempt from responsibility. Ill-considered actions of an entrepreneur can not only affect the reputation of the company and lead to financial losses, but also destroy the business.
For the development and security of any organization, a legal service is necessary. Its specialists are called upon to introduce legal mechanisms for the effective implementation of the company’s activities, to ensure its legal protection by identifying and eliminating possible risks. Without a legal service, the successful functioning of an organization today is almost impossible to imagine.
Why do you need a legal service?
The legal service’s principal responsibilities may be classified into two areas.
- Internal tasks related to the activities of the legal service directly in the field of law:
- contract work: maintenance of the register of contracts; creation of drafts (forms) of contracts used in the organization; legal examination of contracts and elimination of errors in them; drafting supplementary agreements and annexes to contracts;
- claim work: maintaining a register of counterparties that fulfill their obligations improperly or do not fulfill them at all; work on receivables; writing and sending claims, tracking counterparty reactions and activities after receiving claims; preparing responses to counterparty claims to the organization, and so on;
- work on conducting court cases: development of a legal position; collection, analysis, processing and preparation of documents for filing claims with the court; drawing up procedural documents (applications, petitions, requests), etc.;
- work with powers of attorney: maintaining a register of powers of attorney, drawing up powers of attorney for the enterprise, monitoring their validity period, etc.;
- counseling the company’s president and workers on legal matters;
- representation of the interests of the organization during inspections: analysis of the grounds for the inspection, preparation of documents, development of a legal position based on the results of the inspection, appealing against the actions of officials, etc. (see also a selection of articles on the topic “For entrepreneurs – on inspections by regulatory authorities”);
- representation of the interests of the company during registration actions: collection and preparation of documents for amending the constituent documents of the organization, preparation of documents for obtaining licenses and accreditation, registration and registration of real estate, vehicles, special equipment;
- representing the company’s interests in enforcement procedures.
