Whether you are starting a new business or the owner of a successful business that is already established, a successful business needs to have a knowledgeable business attorney. You have taken the time to develop business plans, execute them, and potentially see them result in success. It is important to find the right attorney to help you with all of the legal issues that are certain to arise as you grow your business. Finding the right attorney involves seeking out someone with particular attributes and expertise.
In order to have an efficient and effective attorney-client relationship, there must be a level of trust in each other. Both parties need to communicate the truth to the other at all times. Your attorney should always be truthful with you, but this type of honesty goes beyond simply telling the truth. It involves the attorney being direct in his or her delivery of information. A business can only thrive when the owner is operating with every piece of information. Regardless if its is “good” or “bad” news, your attorney should always tell you what is happening in regards to your business.
The legal system operates in a linear fashion. Everything has a process that must be followed. Your attorney should not operate in a different fashion. Knowing that your attorney has a process in place to deal with issues that arise and other steps in the course of business will help you get the most value out of your legal services. You should be aware of your attorney’s strategy for handling your business and if he or she has plans in place for issues or pitfalls that might arise.
The term ‘business law’ is vague. From its name, you can assume that it has to do with business and the legal issues surrounding running, owning, and operating various types of businesses. However within that are many, many different areas of business law. There is a wide range of issues and complexities that may arise. Therefore it is important to know that the attorney you are hiring can provide the legal services that you need. The practice should be versatile enough that the attorney can handle the basic needs of your business.
As state above, business law encompasses a wide range of topics. While no attorney can be knowledgeable in every part of the law, an attorney with proven success in certain areas can be promising. There is no substitute for experience. Experience results in confidence, knowledge, and knowing the resources available to deal with legal issues. Ask about the areas of business law an attorney has practiced in to be confident that your attorney will be able to competently handle the needs of your business.
The business law attorney at the Law Office of Kris Mukherji is here to help you with your business planning needs. With a proven track record of success, Attorney Mukherji is a reputable business law attorney with years of experience. Contact us today for a consultation and get your business law needs to be handled.Read More
Corporations are complex entities. There are many moving parts and people that make up the structure of a corporation. One such important group is the board of directors. The board of directors is responsible for representing the shareholders of a corporations. The board also establishes policies and procedures to oversee management and major company decisions that are made. The California Corporations Code Section 300(a) states “the business and affairs of the corporation shall be managed and all corporate powers shall be exercised by or under the direction of the board.” The board of directors is a powerful group of individuals within a corporation. Just how much power do they hold, though? The California Corporations Code can make it seem like the board holds all of the power in a corporation. This brings up the question of whether or not a board of directors must authorize filing a lawsuit that is brought in the name of the corporation.
Recently, the California Court of Appeals decided on this issue of authorizing lawsuits. In St. Mary’s Holy Apostolic Church of the East v. Benjamin, a religious corporation was bringing suit against its former board of directors. During trial, the president of the board of directors, who had verified the complaint, resigned. The defendants in this case argued that because the president who had verified the complaint resigned, the corporation lost its standing – meaning that there was no valid lawsuit.
The court did not agree with the defendant’s argument. Instead, they quoted precedent that declared, “a corporation has an inherent right to sue without the board adopting a resolution that specifically authorizes the action.” Thereby, the court rejected the argument that the plaintiff lacked standing. Furthermore, the court stated that a “corporate plaintiff is not required to prove it had authority to institute suit.” Finally, a “defendant may waive question regarding right to maintain action if not raised.” A board of directors has a lot of power, but they are not the penultimate ending to lawsuits if there is any change in the composition of the board of directors.
In addition to the California Court of Appeals rejecting the argument with precedent, the court also looked at the California Code of Civil Procedure. The Code of Civil Procedure, Section 446 does not require that there be board verification. Specifically, the code states that “when a corporation is a party, the verification may be made by any officer thereof.” In other words, the former president of the board of directors does not invalidate the lawsuit.
The business law attorney at the Law Office of Kris Mukherji is here to help you with your business planning needs. Whether you have questions regarding your corporation’s board of directors, pending lawsuits, or any other issue that can arise in the day to day aspects of a business, we can help you. With a proven track record of success, attorney Mukherji is a reputable business law attorney with years of experience. Contact us today for a consultation and get your business law needs handled.Read More