Friday, October 29, 2010

Nevis Multiform Foundations

By Seth Embry Platinum Quality Aut
The Nevis Multiform Foundation Ordinance provides that each Nevis Foundation can provide in its constitution how it is to be treated - as a trust, a company, a partnership or an ordinary foundation. The Ordinance allows the stated identity of the Foundation to be changed during its lifetime. A Nevis Multiform Foundation is typically used for estate planning, charity, financing and special investment holding arrangements.

Registration Requirements

A Nevis Multiform Foundation is required to have a Nevis registered agent and office to which communications can be sent, an acceptable name with the word trust in it, a management board and secretary and a memorandum of establishment filed with the Registrar.

The subscriber of the trust or the trust's registered agent is required to deliver to the Registrar an original copy of the multiform trust's memorandum of establishment and by-laws (if any) and the required registration form signed and acknowledged before witnesses by the subscriber or the registered agent for the subscriber.

Advantages of the Nevis Multiform Foundation

Nevis' is a popular location for international businesses and trusts. The Nevis government is recognized for the support it offers international businesses, for the reasonableness of its fees and for its knowledgeable professional service providers offering assistance in the formation and management of Nevis trusts and business entities.

The Multiform Foundations Ordinance, effective on October 1st 2005, clearly states that one of these foundations cannot be made void, or be set aside, or found defective by reference to the laws of a foreign jurisdiction.

Nevis guarantees privacy under the St Kitts and Nevis Confidentiality Act 1985. The Foundation can elect to have some or all information regarding the trust available on the public record by completing the appropriate form and filing it with the Registrar. The Foundation can later apply to have information removed from the Register.

It also conveniently provides for existing entities formed outside of Nevis or a Nevis international corporation or multiple entities to be combined and transformed into a Nevis Multiform Foundation. It is also easy to move an existing foundation to another jurisdiction.

If the Foundation conducts no business with persons within the Federation, the trust is exempt from income, withholding and capital gains taxes.

However, the Ordinance allows a Nevis Multiform Foundation to elect to be a tax resident of Nevis. The Multiform Foundation, if a tax resident of Nevis will be subject to a Corporation Tax at a rate of 1% of its net income or a minimum of US $1,000 per year. A Nevis Corporation Tax return must be completed by a qualified accountant but audited accounts are not required to be filed.

Conclusion

The key benefits of a Nevis Multiform Foundation are its flexibility, the support supplied by the government and the professionalism of the registered agents, the ability to elect tax residency in Nevis and the Ordinance's provisions allowing the trust to elect the type of entity it wants to be treated as and the level of privacy and transparency desired with regard to the information about the trust.
READ MORE - Nevis Multiform Foundations

Do We Need a Partnership Agreement?

By William X Ryan
Starting out on a new business venture with others you know and trust is normally about planning all things you will do to make your business a success. It will very likely involve a range of issues focussing on finances, how to promote and sell the product or service and providing excellent service.

However, for most business ventures there will come a time when relying on 'what was said during the early days' is not going to work out. So what happens if things are going wrong in the business or someone wants to leave and sell their share of the business? How will you deal with it if you are having a problem agreeing between yourselves?

In the absence of a Partnership Agreement ("PA") The Partnership Act 1890 provides the legal rules that govern a partnership. Importantly, it provides that all partners are entitled to share the profits equally no matter how much money, capital, effort or skill they have put into the business and any partner can bring end the partnership by simply giving notice to all the other partners. Also, if one of the partners dies the partnership is automatically dissolved.

With a Partnership Agreement in place there is an agreed written structure for your business, which can spell out each partner's responsibilities, rights, profit/liability sharing, how to go about entering and leaving the business and also the terms on which disputes are resolved.

Typically they cover the duties and responsibilities of each partner, the management of the business, salaries, allocation of profits, borrowings and reimbursement, non-competition, powers of attorney, admission of new partners, leaving or retiring from the partnership, termination and the dispute resolution arrangements.

Having a Partnership Agreement is definitely not to be seen as a negative thing like planning how you divorce whilst getting engaged. It is a practical and entirely prudent way of ensuring that the business has proper foundations to deal with a range of fundamental issues that will very likely come up at some time or other.

If you don't agree how these matters are to be regulated when you are setting up or during the 'honeymoon period' of you partnership can you imagine how difficult and costly it might be to deal with at a time when all the partners are at loggerheads or one partner loses mental capacity.
READ MORE - Do We Need a Partnership Agreement?

The Long Wait to Form California Business Entities

By Richard Chapo Plat
California has the eighth biggest economy in the world per a recent study. Despite this, the state is up to its eyeballs in red ink. It has been cutting services to deal with the problem, which is translating into a very long wait when trying to form business entities.

The Secretary of State handles business entity filings in California. The agency had branches in the major cities where entities could be filed. The process took one to three months if you just sent in the paperwork. Alternatively, you could get the filing done in 7 to 10 business days by having it hand filed and paying a $15 fee. If you really needed it immediately, you could get the entity approved or denied within 24 hours by paying additional fees in the $500 range.

All of this has changed in 2010. The budget problems of California are legendary and, unfortunately, getting worse. It is the rare agency in that state that hasn't felt the burden of a shortfall in revenues. The Secretary of State is no different. The agency has had to close down all of its branch offices and cut back services at its main office in Sacramento. Turn around times for a simple filing are 20 weeks or more. The $15 hand filing option now takes between 8 and 9 weeks. The 24 hour option is still available, although many believe it to will come under pressure.

Why should you care about any of this? Well, starting a business is often a time sensitive process. New businesses usually get off to a solid start because there is a lot of excitement and momentum. On top of this, many of the opportunities they are pursuing are time sensitive in that one only has a certain amount of time to take advantage of them. Being required to wait two months or more for the business entity filing to merely be looked at, much less approved, can mean such opportunities are missed out on.

If you are considering forming a business entity in California, keeping appraised of processing times at the Secretary of State. They are long now and expected to only get longer as we get later into the year.
READ MORE - The Long Wait to Form California Business Entities

The Main Aspects to Be Covered in a Law Firm Partnership Agreement

By Humayun Altaf
The constitution of a law firm is now more simplified than ever before. Any lawyer or a group of lawyers can establish a firm partnership with the purpose of practicing law. Still, all matters regarding the form of partnership, the management of the firm and any liabilities should be arranged for. This is done in the form of a law firm partnership agreement. This agreement has to cover a number of major points.

The document should start with the outlining of the main aspects of the law firm. Its name and business address should be included. The term of the partnership should be stated as well. The next point that should be covered is the purpose of the law firm partnership. The standard definition can be given. For instance, "the purpose of the firm is to advise clients on all legal matters and to represent them in civil or criminal cases and in other matters related to law". It is possible for the statement to be more precise and to include the field of law that the firm will be working in.

The law firm partnership agreement should state clearly the professional liability of the firm. It is possible to state any type of legal insurance provided. The next point should cover the transfer of partnership interests. The document should also contain a title of partnership property. This is an important provision in case the firm is broken up, as it arranges all matters regarding property ownership.

Generally, the agreement should also include a number of points related to the functioning of the law firm as a business entity. These should cover any leases and notices. It is important for the tax form and payment to be stated in this founding document. The bank accounts of the entity should be stated as well.

There should be a section in which the liability of the firm and the liabilities of the partners are covered. Even though the entity is in an establishment stage, it is best for the agreement to have a section regarding mergers and acquisitions. These have become common practice at present, so they should be provided for in advance.

The firm partnership agreement should provide for the new client acquisition, the management of client files and the client retainer agreements. It is best for all matters regarding retainers to be arranged in advance. This will facilitate the functioning of the entity from the start.

The management structure of the firm should be clearly described in the establishing document. This is applicable to the partnership structure, if it differs in any way. All committees in the firm should be defined. The name of their chairpersons should be stated. The names of the managing partner, administrative partner and of the financial director should be present as well. The voting procedure should be established in the document.

The law firm partnership agreement should have a section regarding the assets and income of the firm and their distribution. It is best for the expenses and allowances to be covered in this document.
READ MORE - The Main Aspects to Be Covered in a Law Firm Partnership Agreement

The Important Law Firm Partnership Agreements Your Firm Will Need

By Humayun Altaf
You are confident in your knowledge, skills and abilities and you are ready to start your own law firm. The enthusiasm is certainly overwhelming, but you have to arrange all legal, financial and management matters before you can begin the actual practice of law. You have to use a number of law firm partnership agreements to establish the entity and to cover all aspects of its operation. Here are some of the main ones that you should consider drawing.

As a start, you will need a standard law firm partnership agreement. It should cover all the main aspects regarding the establishment and functioning of the entity. There are a number of important points that should be included in this agreement. The joint and individual liabilities should be described. This is applicable to the management and partnership structure of the firm. The latter is really important if the entity is large or has large scale expansion plans. The income distribution and the expenses and allowances should be covered as well.

Most firms prefer to provide for all aspects of the partnership in the establishment document. In this way, all legal and financial matters between the partners will be arranged in advance. You should definitely consider using an agreement with provisions for the withdrawal, retirement, expulsion and death of a partner. These will save you a lot of hassle and money in the future.

The partners in some law firms have more specific professional and business relations and want these to be established in the law firm partnership agreement. Furthermore, some entities prefer to have separate agreements for new partners regarding their function and position in the business. In such cases different documents will be necessary. These include an agreement with provision for eventual retirement of senior partner and/or an agreement with provisions for terminating the interest of a partner.

It is best for a contract to employ law firm to be drawn in advance. This document will guarantee the smooth operation of the entity from the start. This contract should establish all the major aspects of the relationship between clients and the firm. The different types of remuneration, including retainer fees and contingent fees, should be stated and explained. The terms and conditions of pro bono work should be covered as well.

Your firm should also use counsel agreement with law, if you plan to have "of counsel" attorneys in your firm. It is important for the role of such employees to be clearly established in this document. Their ties to the entity should be explained. Their operation practices and responsibilities, if any, should be clearly described. All financial ties and remuneration matters should be clarified in this document.

You have to put in a lot of thought, time and effort in drawing these law firm partnership agreements. As highlighted earlier, all sides of all aspects should be covered. This will allow the firm to operate effectively and profitably. If you feel that you cannot come up with the documents on your own, you might want to opt for ready templates. These will certainly aid you in securing the smooth operation of your firm.
READ MORE - The Important Law Firm Partnership Agreements Your Firm Will Need

How to Embark on Company Restructuring

By Barry Trevor
If you want company restructuring to take place within your business then you have to do the following set of things:

Firstly, look into getting help in the process. Professional corporate finance experts can guide you in the right direction so think about consulting with someone, as it is a hard process to go through alone, particular if you are doing so as you are in a bad financial situation.

The next thing to then do is work out whether or not you need something completely drastic. If you are in a really bad situation then you will need a complete overhaul as your last shot at making your business work, or you may even find that company restructuring is not enough and you may be advised to look into other methods.

If you decide restructuring will work, then identify the problems with your current structure first. Do you have too many people in middle management for example? This can be a common problem and is something that needs to be solved by promotion, demoting or letting people go. Replace people that are ineffective at doing their jobs on any level, or try and assess whether the role is even needed before you refill it.

Make sure that you take the structure change you propose to all owners and managers involved in the business, as it is something that everyone needs to agree is the right process to take, and they may also have ideas which improve on your own.

Look at your company and how it operates after that. What do you deal with in your sector? Cut out the money going to buying in things that do not earn you a profit and never buy too much stock which you cannot see shifting in the next couple of months, as you can always buy more then if it is popular.

Talk with customers and suppliers and make sure that you are getting the best deals in all areas. Maybe even talk to other rival companies about the possibility of a merger, so you get to share your client base, reduce competition and become one new, excellent company. If you can negotiate a good deal then this can be really effective and you can then restructure using their resources and product lines as well as your own.

Once you hire someone to help and get the go ahead from everyone who needs to know, then company restructuring is straightforward enough. It is a massive upheaval for all staff and the company, but it will give you better profits and will make sure you run efficiently, especially if you review your work regularly. You may be able to get a bridging loan from the banks to help you cover the costs of the process.
READ MORE - How to Embark on Company Restructuring

Law Firm Partnership Structure - The Main Levels and Common Practices

By Humayun Altaf
The law firm partnership agreement is the establishing document of any law firm. It determines and states the type of partnership structure the entity will have. The internal organization of law firms differs from the structures of other business entities. It has a number of levels that may vary. The organization also has specific practices regarding promotion and remuneration.

It is not uncommon for a law firm to be a sole partnership. A lawyer is working on their own with or without the aid of any employees. Still, the general partnership and the limited liability partnership are more common. These firms have pyramid structures with different levels of employees.

The partners are the owners of the entity. They are usually the business and management directors of the firm as well. They are responsible for the legal operations of the firm. The associates are lawyers employed by the business entity. They engage in legal practices and provide the legal services of the firm. These lawyers usually specialize in a certain type or types of law, but this is not always the case.

The paralegals provide technical support to associates and partners. They are not lawyers, but they do legal clerical work. Some large firms nowadays have a broader support staff. They might hire accountants, IT specialists, receptionists and people providing other technical support services.

Many large and medium-sized firms in countries, such as the USA and Canada, have "of counsels" working for them. This job role has been legally established. The term is used to describe an individual who is working as an independent contractor. The counsel is a lawyer who gives advice and aids the employees of the firm in different ways. It is possible for them to take the cases of clients as well, even though this is not typical. This type of work relationship allows the counsel to profit by using the client relations the firm has established. In turn, the entity profits from the services performed by the counsel on its behalf.

The remuneration structure resembles closely the partnership structure of a firm. The partners pay remunerations in the form of salaries and bonuses to their employees. As the owners of the capital of the entity, the partners share its total profits. It should be noted that the profit of a firm is equal to its revenue minus all costs for salaries, rent and printing and stationary and so on. Counsels are paid as determined in their contracts.

The promotion of associates to partners is a clearly established practice in all law firms. The employee has to have excellent performance and a long-term experience working for the law firm in order to be eligible for partnership. In the past, it was common for associates to become equity partners and to share the profits of the entity. However, given the large size of most modern-day law firms, it is more typical for lawyers to become non-equity partners. They receive higher salary and gain some voting rights, but do not gain a share of profits.
READ MORE - Law Firm Partnership Structure - The Main Levels and Common Practices

Can Company Restructuring Save You?

By Barry Trevor
When a business is struggling and repeatedly failing to give good profits, or even to break even, then it is time to do something drastic to try and make a change before you have to bow out of the market for good. It is clear that something needs to be done to change the way your business works and get the money coming in, so you have the funds to improve yourself.

One such way of going about a change is to try company restructuring, which moves the hierarchy of a company and makes sure that it is working in the cleanest and most efficient way possible. Wages eat up a lot of money each month, and have to be taken out of any more earned before you get to use it for anything productive. Thus, you need to make sure that your staffing is good. Do not take on too many people. It is hard having to let people go, but sometimes job cuts are necessary to make the most of a company, and when you are doing well you may be able to rehire people.

Look at the levels of jobs that you have. There will be management, middle management and then the more basic manual staff. Or at least that should be how it looks. There should be one or two high staff, a few more in the middle and then more again at the bottom, so everyone has someone to report to. Consolidate your businesses into these layers, and make sure that there are not too many on any level. Get people to use their skills wisely and maybe even rotate jobs on the same level to keep things fresh for employees. Good communication with their higher staff and being able to work towards targeted goals should keep people well motivated and doing the best to make your company the profit it deserves one day.

Restructuring means making sure that all job roles are suitable, necessary and beneficial to the company. Change the places that your money goes and building a good, hard working workforce (with training opportunities) will give you the opportunity to make your company efficient and means that you know no money is being wasted on staffing costs and suchlike, when it is better spent elsewhere, such as for marketing your business and bringing in clients to bring in more money, which can then be rerouted back into staff that may be needed to deal with this if you find that is the case.
READ MORE - Can Company Restructuring Save You?

Company Restructuring - Cutting Costs

By Barry Trevor
The restructuring of an organisation is basically when the business is looked at from any aspect and then shaken up in order to make the business uncluttered, so that it runs more smoothly. This also clears up any discrepancies which your company may have developed since the structure in use was put in place. The main sections which are looked at during the restructuring process are the: legal aspects, ownership aspects, operational aspects and any other aspect which affect the day to day running of the business.

The main idea behind the restructuring of a business is to cut down on costs. There are lots of ways in which a business could restructure itself in order to make it much more efficient and as cost effective as possible, some of these examples are:

Firstly the job roles, which can be outsourced to other companies, which are more equipped to specifically deal with the problems much more effectively. Things such as ICT support for the business or the pay role of the business are examples of these, as people are not needed for these roles constantly, so either allow someone already with a job in your business to help in these areas as a sideline if they are qualified, or else hire people in when and if needed.

Another form of restructuring is the movement of operations from a high cost location to a low cost one. The reason is the same as that for outsourcing: it will lower costs giving a greater margin for profit, which in turn will give higher income for the business. Another advantage of moving from a high cost location to a low cost one is that a low cost location is a low cost location for a reason. There may be some form of government backing available for the business moving to a low cost area if there is proof that there may be job opportunities created by the move, this again means more income for the business.

You can always restructure your services too. Make sure that unprofitable product lines are cut out and maybe source innovative new ones to take their place if you have the funds. Make sure you keep your catalogue of services and products you offer clean and as small as possible, meaning that you have less to pay out, but get money in from it for being good at what you do actually offer and having the best things to give people.
READ MORE - Company Restructuring - Cutting Costs

Turnaround and Restructuring Can Work For You

By Barry Trevor
The turnaround and restructuring of a business simply translates to a method of taking a failing business and turning it back into the successful business that it once was, or on the other hand taking a business that has never seen real success, and turning it into a successful one. The reconstruction part simply means that the whole hierarchy of the business is shaken up, with everything changing.

There are many different ways in which a failing business can be turned around in order to make it profitable. One of these ways is to cut back on costs which the business is incurring. Doing so, everything else in the business will come down too, making the break even point more accessible and it easier to obtain some form of profit from the market.

Restructuring is a good way to bring the costs of a business down greatly if it is carried out correctly, but to be able to do so then firstly you must be able to correctly organise the business into a hierarchy structure. This is generally with the owners of the business at the top of the structure, with the manual workers at the bottom and within the two sections all of the middle management and other layers, which create the body of the hierarchy. One of the biggest contributors to costs of a business is wages, so make sure that you only hire the staff you need. Thinking about restructuring a business, it is most important to turn the structure upside down and look at it from another perspective, in the sheer quantity of the layers. The diagram should be a pyramid shape and all of the layers should follow pattern being that the higher up the diagram the less people that should be on that layer, so if there are any layers with more people than it should have start with them.

After you have taken out any of the unnecessarily filled places, then it is time to de-layer. This is where whole layers of the organisation go at a time: this process not only cuts down on costs but it also increases communication channels between lower levels and higher ones which would result in an increase in morale as they think that it is easier to get a message through to higher levels. Changing roles of people and making sure everyone in the company works well together is the key to heading towards and achieving success for the business, as everyone plays a role in this.
READ MORE - Turnaround and Restructuring Can Work For You

Delaware LLC - Why We Should Incorporate Business in Delaware

By John Phu
There are numerous reasons why one should incorporate business in Delaware. Delaware has a separate business court, known as the Court of Chancery. This court is considered as one of the finest courts in the country. The court does not use juries, and all the judges are appointed on merit; they are not elected. Their decisions are in written form, which are well thought out and very easy to follow.

In this way, Delaware has a large stock of laws to rely upon. Many legal textbooks of law rely upon the laws of the Court of Chancery to teach the law students these well-written laws. Many American Corporate lawyers have studies these laws that help in all the legal matters of a business.

The rationale of forming a Delaware LLC is to take benefit from the limited liability they offer. This means that your business assets and personal assets will be treated separately and in case of any loss, you will only lose your business assets; your personal assets will not be touched; they will be safe. Separating your personal assets and using a legal form, such as a corporation, will protect your personal assets.

The initial charges, annual franchise tax and the cost of continuing operations in Delaware are very low. Delaware does not charge Delaware corporate income tax to Delaware LLC as long as they do not manage business in Delaware. They may also offer federal tax advantage to Delaware LLC.

Different kinds of trade can be initiated under the cover of Delaware corporate. Shareholders act in a written form as a substitute of conducting meetings, and you can easily accumulate people to the board of Delaware LLC who are not shareholders. The corporate records are not kept in Delaware.

One person can take hold of the Delaware LLC by working as a director, president and a shareholder. You can easily incorporate in Delaware from anywhere in the world, without every time visiting the state where Delaware is.

Delaware keeps your identity and personal information safe and secure. It does not require the names and addresses of all the LLC members. If there are any law proceedings or law enforcement actions, only then this information is revealed.

Forming a Delaware LLC is very fast and easy. You can enjoy many several advantages by incorporating your business in Delaware. In today's world, many people are taking full advantage of this company. People tend to incorporate their business in this company. The legal written laws are very beneficial for the businesses in law suits. The low charges are very attractive. In addition, the option of concentration of power is also liked by many people. All these advantages give a complete package to businessmen incorporating in a big, well know, trustworthy and reliable companies like Delaware.
READ MORE - Delaware LLC - Why We Should Incorporate Business in Delaware

Mergers and Acquisitions - What Are They?

By Barry Trevor
A commonly thrown around term in corporate finance, it is important to know what mergers and acquisitions are, because they are a key to owning an expanding and profitable empire of companies over time. It is not something that needs to be though about within the initial stages of a business, but it is a good to know whether mergers and acquisitions are something that you may be wanting, and having, to deal with one day.

Basically, if you want to have more than one branch of a company, or are wanting to expand on your initial business by having more space and so on, then this is something that you should make a note of looking into.

Mergers and acquisitions are, in the simplest terminology possible, the aspects of finance that deal with buying, selling and merging companies in order to change the size of your business as it currently is. So whether you are selling off smaller branches to focus more on larger, more profitable ones, or buy out a failing business to transfer it into being a branch of your company, learn about this.

As there is a complicated set of procedures involved in this aspect of corporate finance, then mergers and acquisitions are something that it is best to get support with. This can be through the hiring of professional experts, who will negotiate the best deals for you and lend you the experience of guiding many other businesses through the same thing. After all, this is a crucial area where you can easily let money run away with you and it is good to have someone in your corner helping out.

A merger is when two companies combine to make one larger one, and an acquisition is when you buy out someone and turn their chain (or individual building) as well as everything they own into yours. Buying a company out of administration is an example of this.

The above really does outline all that there is to know about what mergers and acquisitions are in terms of a definition. To know more then it is best to do research by talking to people who have already done this and by consulting and paying for someone who can guide you through the process and teach you what it entails.
READ MORE - Mergers and Acquisitions - What Are They?

Forming an LLC to Protect Your Home Business

By Mark A. Thomas
Where to house your business is one of the first decisions in forming an LLC. Before you sign a lease consider forming an LLC out of your home. Running your business out of your home can reduce start up costs and provide you with a more flexible work schedule. But, there are a few things to consider before you decide:

•Does your home give you the workspace you need?
•Do the zoning ordinances in your area allow for a home based business?
•What type of insurance does a home business need?

If you are forming an LLC, you will need the right workspace. Think about your business needs to determine if your home can accommodate them. Does your home have storage space if needed? Does your business require extra power sources or refrigeration? Is there an area in your home where you can handle phone calls uninterrupted?

Based on your above answers, if you home still feels like the right place to do business, next consider zoning. City or county zoning laws can affect your home business. In some residential areas, local zoning ordinances prohibit all types of business. However, a great majority of city and counties have residential zoning laws that allow small, nonpolluting home businesses as long as the home is still primarily used as a residence and the business does not adversely impact the neighborhood. To determine whether residential zoning rules allow for a home business, a copy of your local ordinances can be obtained from your city or county clerk's office, the city attorney's office or your local library. But, before you make the trip, check your city's home page, they may have the ordinances available on-line.

Don't solely rely on your current homeowners' or renters' insurance when forming an LLC out of your home. A regular homeowners' or renters' policy many not be enough coverage to protect your business equipment, or cover you from liability. Check with your insurance, many policies do not cover business use of the home. For example, if you home is damaged or lost due to fire, your insurance coverage could be void because the insurance company was not aware of your home business. You can avoid a costly mistake by fully disclosing to your insurance agent your plans to run a home business. Your agent can assist you in adding a relatively inexpensive rider to your policy to protect you. Remember to ask your agent about adding any needed liability and auto coverage.

Don't forget the home office tax deduction. Forming an LLC out of your home can help lower your tax bill. If you can meet the requirements of the tax law, the IRS will allow you to deduct a percentage of the costs of running your home, such as, mortgage interest, real estate taxes, utilities, rent, insurance and even qualified repairs or improvements.

In todays economy, it is smart to be careful with expenses when starting up a business and starting in your home can be a perfect solution for many entrepreneurs. Even in a good economy some great business ideas start off in a home or backyard garage. Anyone remember how Apple Computers started? The point is, that forming an LLC does not necessarily mean a huge company. It's a great way to protect a small start up business, too.
READ MORE - Forming an LLC to Protect Your Home Business

Voluntary Liquidation

By Barry Trevor
Voluntary liquidation consists of two kinds such as creditor's voluntary liquidation and member's voluntary liquidation. Creditor's voluntary liquidation is suitable only if the company is not able to meet the debt obligations. If the liabilities of a company is more than its gain and assets or if the company is unable to solve the debts even after the deadline time or if the company does not contain the prospects for trading, the shareholders force the concern into liquidation with the support of the directories along with the finalized votes of the creditors made according to the desire of the liquidator.

A member's voluntary liquidation is also called as solvent liquidation. It is helpful for the shareholders to force a solvent company into liquidation to block their capital. It is also helpful to protect the closing of the company in a particular order or to put an end to the affiliates which has outlasted its benefits.

The liquidator is appointed by a shareholder. A Statutory Declaration of Solvency is needed which should state that the directors have made a complete analysis of the company affairs and concluded that it will be able to resolve its debts along with the interest amount within a time period of twelve month. The appointment of the liquidator takes place at the company's astonishing general meeting with the approval of 75 percent votes of the shareholders.

The liquidator is able to analyze the assets of the company, take proper steps for the settlement of the claims provided by the creditor and disperses the other assets to the company's shareholders. Prior to choosing the option of member's voluntary liquidation, the directors must have analyzed the whole tax implications.

To prevent the liquidation of the company, the company should choose the right security services which will be able to offer a control framework depending on the risk in order to secure the people, vessels, profits and cargo. The method of responses, risk maintenance and security methods of the security services should be made in such a way that it offers a right security to the company.

These services should be able to reduce charges by developing the process of the business and decreasing the security risks by which the business gets affected. To provide support to the clients, these services should have employed reputable lawyers, financial advisers and accountants. Some of the special facilities offered by these security services include security planning and management, ISPS code compliance, crisis management, anti-privacy operations, project examples etc.,
READ MORE - Voluntary Liquidation

Companies - What Are They?

By Jack Barnes
Depending on where you are in the world you can always identify a company because it will normally have the words "limited" or "Inc" after its title.

But what is a company and why are they important? A company is an entity which has its own legal personality. What this means is that in the eyes of the law a company is its own legal person. This means a company can own a property, it can enter into contracts, it can employ people, it can sue, and it can be sued.

The company is made up of its shareholders and is run by its board of directors. A director does not have to be a shareholder although most normally are. Other than voting at general meetings of the company shareholders normally have very little say in how a company will be run (unless there is an agreement to the contrary).

A shareholder pays money for his shares when he joins the company. Upon the company receiving this money the company will issue the share certificates to the shareholder and at that point he then properly becomes a member of the company.

The reason why companies are referred to as limited is because of the concept of "limited liability". Once a shareholder pays his money for his shares he will not have to give the company any more money in the future. If the company owes debts of $2 million it is the company which owes the money and not the shareholder. The liability of each shareholder is limited to the amount of money he paid for his shares and he cannot be asked for any more money by any creditor.
READ MORE - Companies - What Are They?

Corporate Law - An Overview

By Swapna R Sanand
A legal practitioner in India can specialize in any specific area of Indian law, such as labor law, tax law, constitutional law, corporate law and family laws, just to mention a few. Corporate law mainly regulates the formation and operations of business organizations, companies, corporate houses and other commercial practices.

The stipulations of corporate law provide that a company has a separate legal identity. A company has its own legal right and legal liabilities that are separate from its members. You may file a legal suit against a company. However, it is not compulsory that the litigation will extend to its owner and shareholders.

Corporate Law: A Good Career Option

A lawyer who specializes in corporate law helps corporate houses with legal processes and corporate dispute resolutions. Further, he helps them in asserting their legal rights and to know their legal liabilities. The industrial boom in India has made corporate law a lucrative career option.

In case you are planning to specialize in corporate law, there are several employment opportunities to consider such as joining a corporate law firm. However, before joining a legal firm, it is essential to confirm about its level of expertise, market reputation, location and size.

Another option that you choose is to commence independent legal practice. Owners of small business enterprises prefer to hire an independent corporate lawyer instead of hiring expensive services of big corporate law firms. Also, you may start your practice by working under an experienced corporate lawyer.

You can also consider joining the legal department of a corporate organization. Several leading corporate organizations hire corporate lawyers for their own legal departments. These firms have there own legal departments to undertake their legal formalities and legal procedures.

However, to pursue a successful career as a corporate lawyer; you should be well versed with company laws, trademark laws, copyright laws, tax and securities laws, and government rules and regulations.

The author, Swapna, is a crazy, fun-loving, intense, moody and liberal thinking Indian mom. She loves writing about books, wines, food, movies, musings on news around the world, and Indian Laws. She has keen interest on the Company Law. She has practiced law for three years in litigation in Kerala, specialized in labor laws during recent LLB course. She also functioned as Commissioner appointed by the Rent Control court to undertake a site investigation on behalf of the court and submitted the report before the aforementioned court.
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What the Heck Is a S-Corp?

By Jessica Mathews
Previously, I've spoken about the many benefits of a LLC and why most small businesses in the United States would benefit from choosing a LLC over a sole-proprietorship or a partnership. (Sorry, but Canada doesn't have a LLC option)

But now comes an interesting comparison of entity choices: The LLC v. the S-Corp.

Okay, it isn't that interesting....except for people like me... and your CPA.

But it is important, so.... get a triple-shot blah-blah-blah (fill in your coffee drink of choice) and listen up.

What is a S-Corp you ask?

(I know you didn't really ask, but stick with me here...)

Well, it is simply a business that elects to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code.

Oh my gosh, are you asleep already? Please try to stay awake. This really is important!

Okay, the reason a business owner might choose to be taxed as a S-Corp is that it provides the same pass-through taxation of a partnership or LLC, but it has some added tax benefits, including the fact that it greatly reduces the amount of revenues on which the business owner(s) will have to pay self-employment tax.

Sounds good, right? Well, if handled correctly, it can be.

Now, while I am a business lawyer, I am not a CPA or a tax lawyer, so please verify what I have to say here with your own tax advisor and confirm the rules that apply in your state.

That said, the benefit of the S-Corp form is that it can save a business owner a large amount in self-employment taxes, something that cannot be said of the LLC. With a LLC, every penny of revenue is subject to self-employment tax. With a S-Corp, the tax savings can be huge. HUGE.

The S-Corp is looking pretty good right about now, isn't it?

If you were waiting for the other shoe to drop, listen closely.

I can think of some major reasons why the S-Corp is not for everyone.

First, once you have made your S-Corp election (please run, don't walk, to your favorite CPA and discuss how to do this, and whether it is even available to you and whether it is the right choice for your situation), there are some heightened requirements that the business owner must satisfy yearly in order to maintain the S-Corp status. For example, the shareholders or members must (I repeat must) adhere to what are called "corporate formalities." Corporate formalities include holding regular and special meetings, keeping minutes of those meetings at the corporate headquarters (even if that is in the garage next to the treadmill that is used as storage), and using a formal, written corporate resolution to document every single significant decision made on behalf of the organization by those running it. These are not impossible to maintain, and many companies do so happily. In fact, I recommend that even LLCs maintain corporate records on the level of those kept by Corporations and S-Corps. But with a S-Corp, a failure to do it can cause you to lose your S-Corp status. That can mean a whole host of not insignificant tax ramifications, not the smallest of which is that you cannot enjoy the S-Corp status again for another 5 years, even if your company would otherwise qualify for it. What that also means is that if your underlying business entity is a C-Corporation, your business revenue will then be taxed as a regular corporation, not as a pass-through entity. If your underlying entity is a LLC, the impact isn't as concerning (if you have no idea what I am talking about, I encourage you to listen to my free telecall about this -- you can find it here).

And converting from a S-Corp to a LLC (if it became clear that being a LLC was the better option for your business) carries inherent challenges and likely financial penalties to make the switch. Generally, switching from a LLC to a S-Corp is much easier and doesn't carry the same monetary risks or penalties.

The second reason why a S-Corp might not be for everyone is that the shareholders of a S-Corp cannot generally receive special allocations of profits and losses. The details of this go beyond this blog entry today (and remember: I am a lawyer and was "told there would be no math."), but suffice it to say that it seems to me that it would be much more difficult to raise capital through investors if those investors cannot write off all business losses on their individual tax returns (versus only those in proportion to the amount of their investment).

In contrast, with a LLC, business debt increases the membership tax basis generally. That means that the members can deduct more losses from the business on their individual returns. And the higher the investor or member's basis, the less capital gains are possible, which ultimately means less tax when he or she sells his or her interest or sells the business. So, although the S-Corp provides the benefit of lower self-employment taxes for its members, it seems to that an inability to utilize business losses and debts could easily off set the benefit of having a smaller self-employment tax.

Regardless of which entity you choose, choice of entity is a state specific thing, and so it is important to consult with a local attorney (or an attorney in your jurisdiction of choice, such as Delaware) to determine which entity is the right one for your business.

Also, be aware that there is a proposal in Congress right now that would do away with many of the tax benefits of the S-Corp for service based or professional businesses. For more information, read this article by the S-Corporation Association of America, and then call your congressperson and complain! This proposal will hurt small businesses across this country!

Being that I'm no CPA, I welcome comments on how business owners have availed themselves of the benefits of the S-Corp status. And if there are any war stories about how businesses have struggled with or lost the S-Corp status, those would be equally illuminating, so bring them on!

** This article is re-printed from Jessica's blog at Startup Nation.

Jessica Eaves Mathews is a seasoned business lawyer, advisor and coach for business owners and entrepreneurs. She is passionate about helping women launch wealth-building businesses infused with authenticity & passion. She is also a multi-passionate entrepreneur herself, having launched a number of successful ventures of her own throughout the past 15 years.

Through her dynamic coaching programs, masterminds, home study programs, live events and ezines, Jessica guides women entrepreneurs and women lawyers through the emotional and practical steps toward a well-founded business that is based in authenticity, passion and that can provide personal and financial wealth. Her Business Brilliance brand is dedicated to empowering women with the tools they need to create a life of personal and financial brilliance through entrepreneurship.
READ MORE - What the Heck Is a S-Corp?

Understanding Promissory Notes When Forming an LLC

By Mark A. Thomas
If you borrow start up cash when forming an LLC there are several ways to structure the repayment. A promissory note outlines the repayment terms of your loan. You will automatically be required to sign a promissory note when you borrow money from a commercial lender to form an LLC. But, it is also a good idea to sign a promissory note if you borrow money from friends or family. You want to avoid any confusion later about the terms of the money whether it was a gift or a loan, how and when it must be repaid and the rate of interest on the loan. There are several types of repayment plans, pick the one that is right for you.

You might consider an amortized payment plan when you borrow cash for forming an LLC. The benefit of an amortized plan is you pay the same amount every month (or year). Part of each payment goes to the interest and part to the principal amount. As long as you have paid the correct amount and paid on time, your loan is completely paid off with your final payment. A printed amortization from the lender or an online amortization schedule can help you determine the amount of payments required to satisfy the loan.

For some small business owners forming an LLC, the lower payments of a "balloon" payment loan is appealing. With this type of loan, you will make either equal monthly payments or interest only payments over a number of months or years. At the end of the loan term you must make a final balloon payment for the remaining balance. If you use this type of loan to form an LLC, enjoy the lower monthly payments but be sure to plan for that large balloon payment that awaits you.

Friends or family members may be the best option for short terms loans when you form an LLC. The interest rate may be better than what you can get from a commercial lender and your payment schedule may be more flexible.

Many small business owners need to borrow cash when forming an LLC. Understanding the terms of your repayment plan is the key to determining which repayment option to choose. Read carefully, promissory notes can be full of legalese. Last but not least, craft a solid plan to ensure you are able to repay the loan according to the terms.
READ MORE - Understanding Promissory Notes When Forming an LLC

Greening the Corporation - Advising Companies On Corporate Sustainability Requirements

By Dana Newman
For a growing number of businesses, implementing smart environmental policy aids legal compliance and promotes competitiveness. Gone are the days when the only companies concerned about environmental laws were heavy manufacturers. Recent developments in both the U.S. government and private corporate sectors have ushered in a new era of corporate sustainability, in which complying with environmental regulations is moving from a recommendation to a mandate for a wide range of businesses. Just as organizations must develop and enforce policies in the areas of governance, employment, and safety, many companies and public agencies are now required to track and report sustainability measurements to ensure legal compliance. Moreover, many forward-thinking companies are already implementing environmental policies to stay competitive, even though it is not yet a legal requirement. In-house counsel should be aware of the new corporate sustainability requirements and recommendations to advise organizations how to develop policies, avoid liability and succeed in the new green economy.

While 2010 began without a comprehensive U.S. federal climate law or legally binding international agreement, regulatory action and negotiations are ongoing. Despite the failure of the United Nations Climate Change Conference in Denmark last December to produce any binding greenhouse gas emission ("GHG") reduction laws, nations will continue working toward a global climate treaty. In the U.S., a bi-partisan bill being sponsored by Senator John Kerry (D-Mass.) could succeed in bringing the parties together and finally getting a new climate law passed.

In the meantime, businesses cannot afford to sit back and wait for definitive law in this area, since a new federal Executive Order, EPA regulations, SEC guidance and private sector programs have gone into effect which apply to a wide variety of companies and public agencies. All organizations that are subject to these new requirements should be incorporating them into their planning and taking steps to ensure compliance.

I. Executive Order 13514

On October 5, 2009, President Obama signed Executive Order 13514, titled Federal Leadership in Environmental, Energy, and Economic Performance. This Executive Order requires all federal agencies to inventory their GHG emissions, set targets to reduce their emissions by 2020, and develop a plan for meeting a wide range of goals for improving sustainability, such as increasing energy and water efficiency, reducing waste, reducing fleet petroleum consumption, supporting sustainable communities, developing and maintaining high performance buildings, and leveraging Federal purchasing power to promote environmentally-responsible products and technologies.

Other environmental targets in the order include a 30% reduction in fleet gasoline use and 26% boost in water efficiency by 2020, and a 50% waste recycling and diversion rate by 2015. The 2030 net-zero-energy building requirement must also be implemented under the order. Each agency must appoint a senior sustainability officer responsible for complying with the order. The Chair of the Council on Environment will report agency goals and results directly to the President.

"As the largest consumer of energy in the U.S. economy, the Federal government can and should lead by example when it comes to creating innovative ways to reduce greenhouse gas emissions, increase energy efficiency, conserve water, reduce waste, and use environmentally-responsible products and technologies," President Obama said in a statement.

The Executive Order was intended to jumpstart a transition to a clean energy economy as climate change legislation works its way through Congress, saving taxpayers money in the process. The order will have a significant impact based on the Federal government's sheer size: it occupies nearly 500,000 buildings and operates more than 600,000 vehicles.

Another key component of the Executive Order is a green procurement policy requiring 95% of new federal contracts and acquisitions to meet sustainability requirements which promote environmentally responsible products and technologies. This also carries a lot of weight due to the government's huge buying power, which exceeds more than $500 billion spent on goods and services annually. The Executive Order charges the General Services Administration ("GSA") with exploring the feasibility of tracking vendor GHG emissions. Recommendations could include requiring vendors to register with a voluntary GHG emissions registry and disclose their efforts to reduce emissions. Preferences or other incentives could be given for "products manufactured using processes that minimize greenhouse gas emissions."

For the purchase of electronic products and services, the Executive Order requires the GSA to ensure that 95% of new contract actions, task orders, and delivery orders for products and services (excluding weapon systems) are energy efficient (ENERGY STAR® or FEMP-designated), water efficient, bio-based, environmentally preferable (Electronic Product Environmental Assessment Tool (EPEAT) certified), non-ozone depleting, contain recycled content, or are non-toxic or less-toxic alternatives where such products and services meet agency performance requirements.

The GSA announced in late January 2010 that it had already drafted energy service agreements with 18 companies to reduce its consumption through energy audits, monitoring and use of renewable energy.The GSA also took steps to make the federal fleet more efficient with the purchase of thousands of new vehicles last year using $210 million in stimulus funds. Roughly 6,500 of the vehicles -- a mix of hybrids, flex-fuel and four-cylinders -- are earmarked for the U.S. Postal Service, which operates the country's largest fleet of alternative fuel vehicles.In 2008, the GSA estimated its purchase of 15,000 seats of power management software would save up to $750,000 annually.

Eventually, all federal purchasing will incorporate the measurement of GHG emissions as a contract requirement. The first step, which is part of Executive Order 13514, is the creation of a voluntary GHG emissions reporting system for government contractors and vendors. Contractors' (and subcontractors') ability to measure and minimize their GHG emissions and provide energy efficient products and services will become an important factor in winning government contracts.

II. SEC Guidance on Climate Change Disclosures

The U.S. Securities and Exchange Commission ("SEC") issued Interpretive Release No. 33-9106 on February 2, 2010 in order to provide guidance to public companies of the agency's disclosure requirements regarding climate change issues. The guidance, which became effective immediately, applies to all public companies.

The release doesn't create new disclosure requirements or modify existing disclosure requirements, but rather, was issued for clarification purposes. Specifically, the guidance addresses four areas that may trigger disclosure obligations under existing SEC requirements:

(1) whether the impact of proposed or existing climate change laws and regulations in the U.S. and other countries may materially affect the company's financial condition or operations;
(2) whether international climate change accords or treaties will impact its business;
(3) whether a company is likely to face indirect opportunities or risks arising out of legal, technological, political and scientific developments regarding climate change (such as changes in demand for the company's goods/services, increased competition, or reputational damage); and
(4) whether a company faces potential physical impacts of climate change on its business (such as disruption to operations caused by weather or supply interruptions, increased insurance, or water availability and quality).

The SEC guidance provides that these climate change disclosures may be required under the Description of Business (Item 101), Legal Proceedings (103), Management's Discussion and Analysis (303), and Risk Factors (503(c)) sections of companies' filings under Regulation S-K.

The SEC noted its concern that some companies had already been providing climate change information on a voluntary basis to third parties, and it wanted to ensure that similar disclosures were in SEC filings as may be required under SEC regulations. Independent organizations such as The Climate Registry and The Carbon Disclosure Project maintain corporate climate change data, while the most dominant reporting regulations are those of the Global Reporting Initiative (GRI). Launched in 1997 with the goal of "enhancing the quality, rigor, and utility of sustainability reporting," the GRI develops criteria that could eventually serve as the basis for generally accepted sustainability reporting standards. As of 2008, more than 1,000 companies from more than 60 countries registered with the GRI and were issuing corporate sustainability reports using its reporting framework.

The SEC expressly indicated in the comments to the guidance that it will be focusing on climate change disclosures in its review of company filings. As a practical matter, public companies are well advised to treat this guidance as binding; if they haven't disclosed climate risks in the past, they'll need to begin establishing disclosure procedures for all future relevant filings using these measures as a roadmap.

III. EPA Mandatory Greenhouse Gas Reporting Rule

Beginning on January 1, 2010, a mandatory EPA rule went into effect, which requires that all major GHG emitters track and report their GHG emissions data under a new system. The new rule applies to industries or facilities that emit over 25,000 tons of carbon dioxide equivalent per year, of which there are currently approximately 10,000 in the U.S. Most emitters are required to install new monitoring equipment or at a minimum develop new GHG measurement protocols. Recognizing that not all of the organizations would be able to comply by January 1, 2010, the rule allows them to use their "best available monitoring methods" until April 1, 2010.

Affected entities will also need to have a written GHG Monitoring Plan, which must address the methods used to collect GHG data, specify the quality assurance, maintenance, and repair procedures for the GHG monitoring equipment, and assigned roles for facility staff to gather data. In addition, the rule mandates the implementation of GHG monitoring training and documentation procedures in line with the record keeping requirements. While the facilities do not have to send their monitoring plans to the EPA, they are required to maintain the plan at their facility and make it available should the EPA request to review it.

This new EPA regulation is just one of many international, federal, state, and regional programs already enacted or currently pending to address the issue of GHG emissions. While there is still a great deal of uncertainty regarding climate change matters and sustainability compliance, it's not a question of whether most companies will eventually be legally required to monitor, report and reduce their GHG emissions -- it's only a question of when, and how.

IV. Private Sector Sustainability Programs

In the business community, despite the lack of uniform laws and regulations, the last several years have seen a great deal of climate change momentum. In October 2009, major corporations including Apple, Pacific Gas & Electric and Exelon left the U.S. Chamber of Commerce over its strong position against U.S. regulation of GHG emissions. Microsoft co-founder and chairman Bill Gates has recently been calling for making climate change our number one priority, and advocates a global effort to lower carbon emissions to zero by 2050 to avoid the damaging effects of climate change.

More companies are now voluntarily launching new efforts to reduce their climate impact. The steady increase in corporate action toward energy efficiency, renewable energy investment, carbon neutrality, and technological innovation stands in stark contrast to the stalled political action on climate change.

Perhaps the most significant corporate action addressing climate change and sustainability is that of Walmart, the world's largest retailer. The company recently put into effect the "Walmart Sustainability Index," which assesses all of its suppliers worldwide based on the lifecycle analysis and environmental impact of their products. Over 100,000 suppliers are now highly incentivized to increase their sustainability efforts in order to maintain a successful business relationship with Walmart and remain competitive in the marketplace.

Working closely with the Environmental Defense Fund ("EDF"), Walmart has also committed to reducing 20 million metric tons of carbon pollution from its products' lifecycle and supply chain by the end of 2015. This equates to the annual GHG from 3.8 million cars -- a significant impact.

Due to its sheer size, Walmart is in a unique position to cut carbon pollution across the globe. Its new commitments are bold because:

* Walmart's supply chain is huge, so these initiatives will have widespread repercussions. Walmart's new index encourages suppliers to reduce their emissions - which they might not otherwise do -- resulting in positive energy efficiency efforts by tens of thousands of companies around the world.
* Walmart is prioritizing the products that create the most carbon emissions across their lifecycles as well as top selling products, and focusing on those first.
* The results are immediate, and not dependent on any particular governmental body to act, or any specific laws or regulations, which may be appealed or changed.
* In conjunction with the Sustainability Index and other measures, it clearly communicates a strong message from Walmart to its international network of suppliers that they must reduce carbon pollution.

Other major global companies taking aggressive action in the area of sustainability and climate change include Hewlett Packard, IBM, Ikea, Johnson & Johnson, Nike, Intel, Dell and Weyerhaeuser. Given their hundreds of thousands of employees, suppliers and customers around the world, these companies have the ability to be very influential in the development of green business practices.

Between the federal government with its more than a half trillion dollar procurement budget, the many companies subject to SEC climate change disclosure rules and/or EPA GHG monitoring requirements, and the private corporate programs such as Walmart's index which in effect guarantee preferences to vendors who implement sustainable practices, businesses and organizations of all sizes, across virtually all industries, will soon be facing the need to increase sustainability efforts.

Further, these developments indicate that sustainability targets, once merely an option, will soon be mandated in both the private and public sector. Apart from the legal compliance requirements, from a corporate perspective developing sustainability policies now provides a competitive advantage in the marketplace and reduces costs.

V. Developing a Sustainability Compliance Program

Businesses should therefore carefully assess the legal threats and growth opportunities presented by sustainability initiatives. This assessment requires consideration of qualitative and quantitative information, since both strategic issues and corporate emissions levels drive the identification of climate change-related risks and opportunities. For example, certain issues mentioned in the SEC guidance, such as legal, technological, political, and scientific developments, can alter the competitive marketplace by creating new business areas or threatening existing ones, thereby triggering the need for disclosure in a company's management discussion and analysis.

Depending on the organization's specific business area and operations, companies should consider taking some or all of the following steps, with the goal of making sustainability a part of the overall culture:

* Establish a benchmark of your organization's environmental performance. This is a critical step in establishing goals and developing a comprehensive sustainability program.
* If your company manufactures or supplies products, evaluate the products' life cycle impacts. This can be done by completing or outsourcing a life cycle assessment (LCA). The LCA will be a valuable tool to help make any needed changes to the product or service and reduce environmental impacts and overall costs.
* Hire or appoint a corporate sustainability officer. Federal government agencies are now mandated to fulfill this job function, and savvy private companies are doing the same. One caveat: if you appoint a sustainability officer with little expertise in this area, they should receive training or consulting services from an experienced and credible agency (e.g., the Institute of Green Professionals).
* Establish cross-functional teams to develop sustainability programs for your organization. Pulling data from the benchmarking data should be used to assist the teams in setting realistic and achievable goals.
* Set initial sustainability goals that will achieve immediate success such as waste reduction and recycling. This will build momentum for the program and generate savings that can go towards the more difficult and long-term tasks.
* Provide sustainability training to those who need it in your organization as it relates to their specific job functions.
* Communicate information about the sustainability program to your shareholders, employees, customers and vendors.

There are a number of systems available to help companies assess their climate change related risks and opportunities, calculate their quantitative emissions information, inform them of the likelihood of potential costs from regulation, as well as highlight potential benefits, such as profits from the sale of carbon credits and opportunities for energy efficiency cost-savings. Participation in a voluntary reporting program such as the Climate Registry or the Carbon Disclosure Project is one way companies can begin gathering information on their carbon footprint and gain greater insight into where emissions are occurring in their operations. Companies may also be able to use the information they collect for these programs to assist them in creating other outputs, including 10K filings. The Carbon Disclosure Project questionnaire, or the GRI reporting system, can be used as a framework to begin internally assessing which factors within their business create climate change risks or opportunities.

Corporations can expect to see carbon management grow in importance as domestic and international regulatory activity continues in 2010. In tandem with this trend, the number of products and services developed to help organizations measure and manage their environmental impacts will expand, from startup offerings to more sophisticated enterprise solutions from industry leaders such as SAP, IBM and Microsoft. Enterprise carbon accounting software and sustainability consulting services sales will grow as companies seek detailed, real-time information about their climate impacts.

In addition, companies can obtain assistance in sustainability compliance from organizations which have been formed to share environmental technology and solutions. The Eco-Patent Commons was launched in 2008 by IBM, Nokia, Pitney-Bowes and Sony in conjunction with the World Business Council for Sustainable Development to contribute environmental patents to the public domain. The organization's mission is to protect the environment and enable collaboration between businesses that foster new innovations. There are now 100 eco-friendly patents pledged to the public domain through this venture.

The GreenXchange was created to enable companies to share intellectual property for green product design, packaging, manufacturing and other uses. Founded by Nike and other companies, the group is a Web-based marketplace where organizations can collaborate and share intellectual property, with the goal of developing new sustainability business models and innovation.

Similarly, last year the EDF launched an Innovation Exchange to encourage companies to share strategies related to energy, water, climate and a host of other issues. Like the Eco-Patent Commons and the GreenXchange, it hopes to publicize new technologies and best practices. The EDF included content in the Innovation Exchange that it developed during its 20 years of experience in working with Fortune 500 companies including Walmart, FedEx and McDonald's.

Business counsel should familiarize themselves with the new corporate sustainability compliance initiatives being implemented by many of the world's largest corporations, as well as the tools and resources available to assist businesses in developing their own environmental policies and procedures. Soon, legal departments will regularly be called upon to counsel management on how to handle the current and future mandatory corporate sustainability requirements, which will not only help their companies avoid liability but also improve their businesses and reduce environmental impact.
READ MORE - Greening the Corporation - Advising Companies On Corporate Sustainability Requirements

Information About Business Lawyers

By Kingster H
The legal system in Sydney is well organized and people who come to this land of opportunity for business setup can rely upon Sydney business lawyers to take care of every detail. These dedicated and expert Sydney business lawyers provide services of high standard to their clients, so that they can easily establish their business.

Most of the city based renowned Sydney lawyers provide their clients with superior advice without much expense. These lawyers are professionals who have experience and knowledge to resolve any kind of legal dispute within or outside the business. You can trust on these business lawyers because they emphasize mainly on the requirements of the client backed by trust, confidentiality and integrity. These ensure that your business legal aspects are in safe hands and they will provide you with best solutions.

The Sydney business lawyers take care of various aspects of a business organization. Agreements and other business documentation like receipts, quotations, bank forms, security, loans, income tax, shareholder's documents, agreements with parties and financial statements, etc. are kept under the supervision of these lawyers. However, the major problem that a business might face is from agreements like contracts, agency, employment joint venture, etc. Sydney lawyers can help you out in these matters with their legal advice in the event of entering into a formal agreement. The agreements should be filled up under the purview of an expert business lawyer and it should clearly state the party's intention and should be enforceable and executed properly.

In cases where a party sends you an agreement, the Sydney lawyers or the solicitors should look into the matter before drafting the document, because if it is not properly studied, it can have negative impacts on the business and can even drag the matter to court. Apart from these, the Corporation Act states that the date of incorporation and last 5 years financial statement must be kept properly in order to avoid any unfruitful incident to take place in the future.

Sydney business lawyers also play crucial role in disputes and litigation, which involves businesses, individuals, government and non-government bodies. Generally, the cause of disputes is mainly due to grievances resulting from a party's inaction or action and can prove damaging as far as your business reputation goes. These lawyers in Sydney then come to rescue of the business through mediation, arbitration, conciliation and determination. They also attend commissions and tribunals to resolve the matter. Other than these, a business lawyer in Sydney has to deal with lot of things, right from contracts to franchising and corporate governance to intellectual property.
READ MORE - Information About Business Lawyers