Why Corporations Need A Good Lawyer


Searching for an estate lawyer may seem like a difficult task, but there are several resources you can use to find qualified lawyers. Your financial adviser is a great source of information for you to find a qualified lawyer in your area. If you have an accountant, then this is another source of information for a lawyer referral.

An audit committee combines experience, intellect, backgrounds and specific skills that oversee the financial reporting process of a corporation. The corporate law states that publicly traded companies that are listed on the stock exchange have at least three independent directors on the audit committee. The audit committee ensures the corporation follows regulatory compliance policies.

A business lawyer is often needed when there are hard questions to ask the chief financial officer. The presence of independent oversight of management lowers perceived risk for the company. It is important that a corporation avoids choosing committee members who have a direct financial connection to the company.

Financial experts should have an understanding of generally accepted accounting principles and financial statements. They also should have experience accruals, reserves and estimates in connection with accounting. Financial experts should also have experience with complex accounting issues. Lastly, they should have an understanding of audit committee functions.

Going Public

If you are a business owner, you may reach a point where you wish to obtain capital from investors instead of borrowing from lenders. There are many advantages to going public including continued growth with additional capital. A successful public offering may also improve net worth that also increases credibility and financial leverage with lenders. Going public can also enhance a company’s prestige by increasing its visibility within the business community.

The main disadvantage to going public is the diminished control of the company. Another drawback is the cost of going public. The cost could be between $50,000 and up to $250,000 for underwriter commissions, printing, attorneys, accountants and filing fees. Public corporations must undergo an extensive auditing process that disseminates information for their shareholders.

Factors to consider when deciding to go public include industry market conditions, financial and legal considerations. A consultation team should be made up of legal counsel, investment bankers, underwriters, selling agents and independent accountants. Securities law is complex and nature and requires an experienced attorney as an indispensable team member of any successful public offering.

The lawyer will ensure that your company adheres to all relevant regulations and laws. An experienced lawyer will also advise changes to contracts and file necessary documents that complete the company’s transition from private to public standing. An accountant also plays a significant role in a public offering. The accountant works closely with the lawyer during the registration process. Bridge financing may be needed from a banker.