commercial law
Three areas under commercial law are at the root of the main difficulties encountered by companies:
- Commercial leases
- Company law (disputes between shareholders)
- Improvement of WCR processes - Working capital requirements (general terms and conditions of sale, interim attachments, settlement with the debtor)
Commercial leases
Premises often represent a significant burden for a company. In recent years, however, rents for business premises have increased exponentially.
However, companies, which by definition have a larger financial standing, have as many rights as ordinary tenants.
Several questions may then arise:
- What is the applicable indexation index?
- What are the applicable terms and conditions of any notice I may be subject to?
- What should I do if my lease is not renewed? Can it be tacitly renewed?
- To what extent can I then give notice and within what time frame?
- Can I discuss the amount of my new rent and when?
Corporate Law
- Do your shareholders have a blocking minority or not?
- Can your shareholders oppose a merger with a specific competitor?
- How can their securities be valued?
Debt collection
- How can I improve my working capital requirement (systematic reminders with reference to the law)?
- Do your general terms and conditions of purchase/sale protect you against a debtor acting in bad faith?
- Financing is an option, but how much are you prepared to pay? How do you know if you need a loan (government-backed or not) or factoring?
The key to any collection problem is the guarantee.
You just need to protect your receivables: attachments/pledges on your debtor are possible before initiating hostilities. An unenforceable judgment is a fundamental error, whereas enforcement can be guaranteed by interim attachments, i.e. attachments made before going to court.
A pledge on the share capital of your debtor acting in bad faith will entail his bank refusing any further loans and withdrawing his overdraft facility.
He will therefore think twice before being hauled before the courts, and try to reach a settlement with you.