Bringing in investors, opening new units, expanding into other markets, creating new companies and reorganizing economic groups are moves that can create important opportunities, but they also require a legal structure prepared to support them.
A company may have an excellent product, an efficient operation and a well-defined commercial strategy. Even so, an inadequate corporate structure can create obstacles to growth.
The legal structure needs to keep pace with the strategy
Incorporating the company is only the beginning.
Over time, changes in the shareholder structure, partners joining or leaving, new investments, business expansion and reorganizations may require changes to the existing legal structure.
Articles of association, bylaws, partners’ agreements and other corporate documents need to reflect the reality of the business and set clear rules for relevant situations.
Issues such as voting rights, profit distribution, transfer of equity interests, entry of new investors, matters subject to approval and partner protection mechanisms should be considered in advance.
Governance reduces conflicts
The larger the company, the more important it becomes to clearly define how decisions will be made.
A well-designed governance structure can establish responsibilities, powers and decision-making mechanisms, reducing ambiguity and preventing conflicts between partners and investors.
Instruments such as partners’ agreements and shareholders’ agreements can be used to set specific rules on political and economic rights, transfer of equity interests, preemptive rights, tag-along, drag-along and other relevant situations.
These mechanisms do not only serve to resolve conflicts after they arise.
Their main function is to establish in advance how certain situations will be handled.
New ventures also require legal preparation
Entering a new market or carrying out an investment transaction can involve different legal issues.
Corporate structure, contracts, guarantees, liabilities, regulatory obligations, tax issues and the protection of investors’ interests are some of the aspects that may need to be analyzed.
When these issues are considered from the start, the company can make decisions with greater clarity about the risks involved.
Legal advice close to the business
Business work requires more than drafting documents.
Legal counsel needs to understand the operation, its goals and the risks that may affect the business.
MV Law works on the legal structuring of business transactions, incorporation and reorganization of companies, corporate governance, investments, shareholder agreements, estate and succession planning, business regularization and regulatory matters.
Our goal is to offer legal support connected to the company’s strategic decisions.
Growing is important. Growing with a legal structure prepared to sustain that growth is even better.