When to Establish Governance Documents as a New Business Owner
by: Ronnie Bitman, Managing Partner | November 9, 2020
Starting a business is exciting. As an owner, all the hard work, vision and anticipation are finally becoming a reality. There are so many details to manage and decisions to be made preparing foundational legal documents is often overlooked.
It is critical for all owners, especially those that include partners or shareholders, to protect themselves and their company by forming an organizational infrastructure that includes written governance documents, such as company bylaws, operating policies and shareholder agreements.
An owner never anticipates potential partner issues or disputes. It is important to implement binding governance documents at the outset of setting up the business so the rights, responsibilities and duties of all parties are in writing, agreed upon and understood. They translate the corporate governance framework and policies into clear practices, procedures, and job responsibilities, as well as identifying specific ways of implementing governance.
We recommend that clients take proactive steps to prepare the right governance model for their new business. Well-drafted governing documents can keep a dispute out of court or, if it does end up in litigation, make a resolution faster and less costly.
Bitman O’Brien & Morat has counselors with broad knowledge and experience who can assist setting up any business for a successful future. Bitman O’Brien & Morat also has expertise in employment, contracts/corporation, personal bankruptcy, partnership disputes and small business issues. Please contact us at 407-815-3110 or visit bitman-law.com.