TOP TIPS FOR A LEGAL ‘MOT’

At the start of every year, many of us make personal New Year resolutions, but businesses can also benefit from focusing on what they could, or should, be doing to make things as smooth as possible in 2022.

Colin Millar, Partner and Head of Corporate at Wright, Johnston & Mackenzie LLP, gives his top tips for businesses looking to do a legal ‘MOT’:

• Internal Employment Policies and Contracts
Review, update or put these in place. Do they consider flexible and/or home working and the IT/ data security issues this presents? Contract templates should also be reviewed for suitability.

• Articles of Association/Shareholder/ Partnership Agreements
If you are in business as a shareholder, partner etc, review these documents and update them to reflect current circumstances.

• Identify Potential Cash Flow Issues
As we enter a period of higher inflation, possibly higher interest rates and the withdrawal of Covid related support for businesses, check for any negative payment patterns of key customers. Catching these early should help to reduce risk.

• Confidential Information and Intellectual Property
Consider and review your processes to keep these assets protected in line with the current legal requirements. Consider a website review as part of this.

• Changes to the Law
Check for any impending changes in the law which might affect your business. These can be general in nature (e.g., GDPR) or industry specific.

• Personal Legal Affairs
Business owners often neglect personal legal affairs but considering and planning for the worst is crucial for your business. For example, updating your Will, critical illness cover, power of attorney etc.

• Succession Planning
Don’t put it off. If you are at an age or stage of your business life where you want to take a step back or will soon be doing that, ensure you have a focused plan ready, and that other(s) are aware of it.

 

This article first appeared in Business Insider