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6 Ways an Organization can Avoid Legal Troubles


6 Ways an Organization can Avoid Legal Troubles

lady justice, legal, law

There is nothing that can harm the integrity of a business faster than legal battles. Every business organization must run its operations within the ambits of the law. An organization may not set out to flaunt the law, but in ignorance, such organization may go contrary to statutory provisions.

A public limited liability company is an entity of its own, distinct from its owners, and can sue and be sued. Litigations are expensive and can stretch for a prolonged period of time. So how best can an organization protect itself from endless lawsuits? Here are a few ways :

  • Get a Lawyer
    The first step in protecting your rights is by knowing what your rights are in the first place. Even though we all have a sense of right and wrong, but in ignorance, a business owner may default in some technicalities.
    The best way to forestall this is by getting a Lawyer, either as a full-time staff or a part-time Consultant. The services of a lawyer would protect an organization against unnecessary litigations and claims. Also, it would protect the organization from undertaking deals or ventures that have negative legal implications, and unending lawsuits from employees, partners and customers.
  • Get Registered
    Some business owners trade from the comfort of their homes or neighbourhood. Customers come and buy and they make their money. But unless the business is formally registered with the appropriate government agency, such a business technically does not exist. And an entity that does not exist cannot claim rights, neither can they claim damages.
    Registering a business with the appropriate authorities is the first step in giving your business legal powers and putting it under legal protection.
  • Pay your taxes
    Taxation is one of the ways government generate funds. Tax evasion and tax avoidance are crimes in my countries in the world. Asides the illegality of avoiding or evading tax payment, companies are usually asked to provide an up-to-date tax record when they seek to do business with the Government.
    Also, the government reserves the right to close down a business if they fail to pay their taxes and such an organization can only resume operation after the taxes have been cleared.
  • Avoid criminally minded associates and employees
    Any company that wishes to stay far from legal troubles must do well to avoid associating with organizations or partners that are involved in criminal activities.
    Also, an organization must ensure that they do not harbour criminals as employees. Associates and employees involved in criminality may make the organization an accessory to the crime without the owner of the business being aware of it.
  • Avoid illicit trade or business
    Some business ventures are by nature illegal businesses. Trade in counterfeit drugs, cocaine, contraband goods, unlicensed sale of arms, etc are in themselves illegal.
    Any business owner that wishes to avoid legal battles must avoid such line of business.
  • Follow the due process in dismissal
    Companies come under heavy fire from lawsuits arising from unlawful dismissal.
    There are laid down rules and processes on how to sack an employee. Adequate notice must be served, or payment made in lieu, and the ground for dismissal must be tangible. Any employee sacked unduly can file charges and drag the organization to Court.


Image credit: Pixabay

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