On July 10, 2011 UK’s News of the World bid farewell to its readers. After 168 years of printing and 8,974 issues, the newspaper closed its doors when a phone hacking scandal rocked the News Corp. establishment.
When a business fails during a dispute, or when a point is reached where a dispute is unavoidable, two things immediately pop into a lawyer’s mind: fraud and piercing the corporate veil. These are reasons you want to set up your corporation, and manage it correctly. For example, if a scandal causes your business to go under as a result, it is important for you, as the individual, to retain your assets. If your business is set up correctly, no one can touch you or your assets.
As a business owner, if you are forced to shut down your business, it is a very emotional and stressful time. But the most important thing to remember is that you need to undertake the proper steps of business dissolution to avoid legal complications and ensure your interests are protected. While there are often costs involved in dissolving a business properly, closing a business without taking these steps can result in ongoing tax and other legal liability. Therefore, before you close your business, be sure to seek the advice and counsel of a business dissolution attorney so that you can make the necessary filings and tax clearances.
Always maintain a written record of all oral communications both with internal people and outsiders. Every day, you will be in meetings, attending conferences, talking with or emailing sources, company representatives, legal officials, etc. You should make notes of all meetings and conversations, whether they are formal, scheduled events or casual encounters. This can be done in a number of ways consistent with your practice and comfort zone. It doesn’t matter the technology used, it must be done. It is critical that you maintain a daily log of every telephone conversation and meeting you have. In the Internet age there are no secrets and there is no right to privacy in these semi-public forums.
Scandals affect all business to an extent; maybe that business won’t have to close its doors but its credibility and reputation are immediately questioned. Every case is different, and the plan of action will differ depending on the client. Whether you are a new or experienced business owners you will need to maneuver through the intricacies associated with business law.