How to Avoid Lawsuit while Conducting Business

How to Avoid Lawsuit while Conducting Business

The number of facts that leads to a legal dispute or lawsuits is endlessduring the course of any business. Since companies are legal entities that can be legally sued for any reason, therefore it is incumbent on the owners of the company to mitigate every possible avenue whereby a person or another organization can initiate a lawsuit against the company. In this article, we will briefly discuss some of the many ways by which you can steer clear of troubled waters and avoid tackling legal cases and thereby, avoiding the expenses that come along.

When a company is incorporated and registered, it is usually assigned an area of operation within which it could functionbased on the License issued by the licensing Authority. Based upon the license please consult your legal advisor and prepare a checklist for the legal compliance.Each sectorhasdefinite set of rules and regulations that govern their actions and any breach thereof is liable to invite legal action by the damaged or afflicted party. Therefore, it is best to understand the industrial policies that are relevant to both the sector within which your company falls under and which are applicable to the company.

There are several policies and regulations you need to abide by when it comes to overseeing the business that you own. Most of it is mostly fiscal in nature, like reporting on annual profit and loss statements, reporting the amount of assets and their value, the amount of capital that can be invested for the next fiscal year. Other regulations pertain to safety regulations, especially when your company belongs to the manufacturing or industrial sector. Abiding by these set of regulations are important, if you don’t wish to face complicated legal battles or huge amounts of compensation and damages that must be given to the victim of an accident. The remaining list of policies must do with employees and relevant labour laws and obeying them is alsoessential in order to maintain the legal integrity and alsoreputation of your company. If you are aware of the policies and their applicability in relation to your business activities, chances of a legal dispute can be minimized in the present as well as the future.

In spite taking all the necessary precautions say your company does gets into a legal dispute. It is common to feel stressed and worried about it, the consequences of such dispute could either payment a massive fine or winding up your business. However, it is possible to extricate your company from these legal disputes. First, it is important to be aware of the relevant law and regulation that you or your company have been breached. This is extremelysignificant as you would get sufficient material in order to prepare your defence against any allegations or points that the prosecution may have against you, in the court.

The next step would be to understand the legal aspects of the alleged breach, after which it is necessary to consult a lawyer specializing in the field of the alleged breach. This will lead to gain an expert’s insight of the situation, but you would also be able to gain the ability to gather the necessary information and data that would allow you to contradict the prosecution’s points of contention and show the judge how you are not guilty of the proceedings held against you and your company. This will help you get a favourable verdict in your favour. You can consult lawyers from legal firms that have a dedicated set of lawyers who specialize in your business fields. Moreover, in this age of the Internet, it has become easier for you to gain access to a legal consultant when you are dealing with litigations. Just simply drop in a query and the lawyer who might be interested in answering it can contact you and both of you can work out how best to handle the situation at hand. If you need to have a successful legal battle, it is essential that you have an experienced and well-read lawyer.

We have briefly discussed what could be the three main types of regulations, whose breaching can invite legal action and summon to the court. Perhaps, from a statistical point of view, companies tend to frequently face legal disputes that arise out of allegedly breaking terms of the labour contract or for not abiding by the established legal regulations on ensuring the welfare of employees in the company. It should be remembered that by keeping the welfare of your employees is directly related to the prestige and respect that your company enjoys. Therefore, keeping labour relations approachable is one of the key ways with which you can ensure that your company remains out of trouble for years to come.

By being clear in your relationship with your employees and by ensuring that it remains cordial and respectful can enable better results to be expected. This can be done by continuously putting in effort that would make the employee feel as if they are an indispensable part of the company and that their contribution to it is a vital part for the company’s existence. Furthermore, by introducing incentives like bonuses, and rewards for exemplary service, you shall be motivating them to perform better than before, which gives them the incentive to be satisfied with their job and have no complaints regarding the company itself. At the core of all these activities, valuing the labour of the employee is the most important thing that should be borne in mind. If successfully executed, you can drastically reduce the chances of any sort of legal action that could be brought forth by your own employee.


Sunil Ambalavelil | Legal Consultant | Lead Partner

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and for more detailed and specific opinion please write to me on