Most business and corporate shows on TV depict lawyers defending their clients in the courtroom, and that’s the perception of a corporate lawyer most of us have. While it’s a fairly accurate picture when compared to real-life dealings, Litigators- would be a more appropriate term to define the type of lawyer under consideration.
So, if that’s not a corporate lawyer, who is?
The distinction is pretty simple. Firstly, the “corporate” in “corporate lawyers” isn’t too different from a “business”. Essentially, they are business lawyers, but “corporate lawyer” is a term more preferred by most big businesses.
To boil it down even further, corporate lawyers are transactional lawyers. They set in place transactions, mergers or client contracts for example, and advise the client to go about business transactions(following legal obligations) in the best possible manner. Litigators, on the other hand, defend any disruptions concerning the transactions, mostly in a courtroom.
How does a corporate lawyer help businesses?
Setting up a business
A new organization must abide by corporate laws and be compliant with governmental rules and regulations. To make this happen, a corporate lawyer begins by categorizing an organization that aligns best with the proposed business idea, such as a corporation, partnership or sole proprietorship.
Further, the lawyers weigh the pros and cons and suggest the best possible location for a business, in most cases concerning tax benefits. Business agreements aligning with legal obligations are then drafted to set up a startup. Corporate lawyers ensure that a business idea fit’s all the boxes, minimizing the chances for discrepancies.
Raising Capital
To raise capital, a corporate lawyer advises the owner on various available ways of financing. If a business wants to expand its operations a lawyer may suggest venture capital as the best option, if the business does not want to dilute any equity then getting a loan would be a more suggested action.
Corporate lawyers also help take an organization public. On agreement of a particular avenue of financing, a corporate lawyer carries the negotiations, draft agreements and set up financing terms abiding by any regulations. In essence, a corporate lawyer helps an entity receive the required funds to carry out its operations.
Mergers
Mergers and acquisitions are of crucial importance to a corporation, impossible to be carried out without a corporate lawyer. Initially, corporate lawyers carry out negotiations with the to-be-acquired entity, and after setting up a memorandum of understanding they examine the entity’s legal anatomy.
Assessment of legal liabilities and ownership of the concerned entity is a precursor to drafting a sales & finance agreement. Following this, a new shareholder agreement is drafted by the lawyers, and on inputs from both entities, a structure is finalized and followed for the transfer.
Creating business agreements
Business agreements are integral to every business transaction. Normally, a general corporate lawyer helps in the creation of the agreements. If the operation is considerably complex, an organization might consider consulting specialists.
While that’s not everything the job of a corporate lawyer is limited to, it does provide a brief picture of the most important aspects. If you wish to hire a corporate lawyer in Calgary, look no further. Contact Du Plooy Law, the best corporate lawyers in Calgary who excel in a dozen more specializations and find the best solutions to your business problems. Visit them here.
