We include 4 following aspects when dealing with issues concerning internal structure and governance of the company:
- avoiding potential disputes between shareholders or officers of the company;
- application of practical solutions allowing efficient operation of the company;
- compliance with the company's registration duties;
- and finally, validity of company's actions.
When you decide to incorporate a company you have surely one particular purpose in mind: do business effectively. To make it possible, the company must "work". Shareholders' and company's officers' competencies should be clearly divided, they should know what they ought to do and what they are not allowed to do. They should know that ignoring the formalities required by law can entail the invalidity of the company's actions - which can lead to devastating results and bury even the well-thought-out business.
The same thorough approach, extended by sound due diligence, must be applied throughout any M&A transactions.
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