Corporate lawyer: Why and how to choose one

Do you have a corporate lawyer? Do you know what legal services they can offer?

Here you will learn when and why you would need to choose an expert in corporate law.

Corporate law: Main aspects

First, we will briefly discuss what this area of law covers.

Corporate law deals with all situations and matters related to corporations and how they operate and interact, such as:

• incorporation;
• mergers and acquisitions;
• public listing and delisting;
• shareholder rights.

The purpose of corporate laws is to maintain a fair market for all.

Corporate solicitors represent businesses of all sizes - corporations, companies, sole traders and partnerships. Some experts might specialize in small businesses and companies, while others consult larger ones.

Note: You might see corporate and commercial law being used as two interchangeable terms. In fact, there is a difference. Commercial law encompasses broader practice areas such as intellectual property, franchising and litigation, while corporate law is specifically focused on companies.

Moreover, it shouldn’t be mistaken for business law, which deals with issues like employment, contracts, and taxes.

The role of corporate lawyers

Corporate and commercial lawyers provide legal advice and assistance for all businesses. This includes help with:

• paperwork and procedures regarding registering or incorporating a new company;
• entering onto the stock exchange;
• securing finance from venture capitalists or private equity holders;
• restructuring a corporate entity in order to reduce or eliminate the negative impact of an unprofitable department or company;
• structuring and acting on public and private transactions and corporate mergers and acquisitions, including buying and selling companies and company assets;
• risk assessment and management;
• tax planning;
• restructuring.

The large-scale corporate transactions can take months to prepare for and complete and be worth a serious amount of money. This is why it is incredibly important to have a trusted and experienced corporate lawyer by your side to take care of everything.

Often, an essential step of every business transaction is due diligence. The corporate solicitor starts out by investigating all necessary information, including finances, the value of assets, the existence of outstanding legal claims of debts that might affect the transaction and so on. An expert in corporate law is best suited to carry out the due diligence process and determine whether the transaction is both profitable and legal.

Corporate lawyers have good commercial awareness and extensive knowledge in contract law, tax law, intellectual property rights, bankruptcy, securities law, and any other areas of law that might affect the activities of a particular business.

This is why having a good lawyer is very useful and highly recommendable.

When do you need a corporate lawyer?

Many businesses prefer to build a relationship with a chosen lawyer who provides guidance on any decision. However, there are some cases when the organisation will benefit from having an expert’s input more than others. Among them are the following situations:

Corporate formation, governance and operation

Creating, organising or dissolving a business entity has to follow some strict laws and specific procedures. It is especially helpful to have a good lawyer to assist throughout the whole process.

Mergers and acquisitions

Mergers and acquisitions (M&A) are transactions in which the ownership of a business is either transferred or combined with another entity. These actions involve the merging of two assets, liabilities, and even ownership. This process leads to the business’s growth, downsize, or significant change in nature. That is why consulting a corporate lawyer is a must.

Corporate insolvency

Corporate insolvency occurs when a company’s assets cannot cover its debts and liabilities. The cause is either lack of appropriate forms of payment or enough assets.

In such a case, there are several options. One of them is liquidation, which means converting any asset into cash or equivalents. Sometimes businesses that liquidate have gone bankrupt, and it is wise to have a lawyer present.

Corporate crimes

Sometimes corporations are accused of breaking one or more corporate laws. Corporate lawyers are equipped to defend entities in court.

Corporate crimes include:

• false claims;
• corporate fraud;
• antitrust violations;
• bribery;
• insider trading.

Having an experienced lawyer knowledgeable of corporate law is a good way to keep your business in check and ensure it runs smoothly.

Venture capital

In a venture capital practice, a lawyer works on private and public financings and day-to-day counseling. Their role involves helping new businesses find money for their ventures, organising their operations, and maintaining their legal and business structures after formation. The goal is to help build and expand businesses. The responsibilities of a corporate lawyer in that case include:

• drafting articles of incorporation and other documents;
• technology licensing;
• financing;
• mergers and acquisitions.

Project finance

This aspect concerns the development and construction of power plants, oil refineries, industrial plants, pipelines, mines, telecommunications networks and facilities, and transportation systems. Those call for the cooperation of many different entities and lawyers and involve great sums of money. This is why having an expert draft the needed agreements and contracts, as well as assist with every step of the process is crucial for the success of the project.

Why should you choose Danailova, Todorov & Partners Law Firm?

Our law firm based in Bulgaria provides complete legal service in commercial and corporate law.

Our experienced corporate lawyers will help you achieve your commercial and strategic objectives and develop and grow your business. We can assist at every stage of its life cycle from formation, acquisitions, joint ventures, capital raising, a sale or other events.

We build long-term relationships with our clients and understand what matters to you so that we can offer the best possible individual solutions in accordance with Bulgarian laws and regulations.

Our corporate lawyers provide legal assistance in relation to the following (but not only):

• Incorporation and registration of companies;
• Changes in circumstances of companies;
• Sales and purchases of businesses and companies;
• Business formations;
• Funding (including private equity and venture capital);
• Management buyouts;
• Company M&A;
• Stock exchange listings and fund raisings;
• Joint ventures and other strategic partnerships;
• Corporate reorganisations and transformations;
• Corporate governance;
• Company secretarial services;
• Due diligence;
• Structuring and registration of project companies (SPV) for the implementation of specific projects and attracting investment

These are only some of the matters which we cover. Moreover, our specialists are responsive, efficient and practical and will diligently advice you on your rights, responsibilities and duties under the corporate law.

It's always a good idea to have a lawyer to craft your business' managing documents, review contracts, and help you make other strategic decisions. However, that isn’t always possible, especially for small businesses. The important thing is to know whom to turn to when problems arise or at crucial business steps and decisions.

If you need expert advice and assistance from experienced corporate lawyers, contact us now. We consult on all kinds of legal issues and offer a complete set of services.