In most cases, a company in one legal form or another is formed for running a business. Different legal forms have different characteristics, and different legal forms suit the needs of different entrepreneurs and industries.
Matters to consider include the number of entrepreneurs involved, the administration of the company, the entrepreneurs’ personal liability for the company’s debts, and the taxation of the company’s profits and distributed profits.
It is also extremely important to consider the management of the relationships between the entrepreneurs during their business operations, and in the case of their company eventually ceasing operations.
It pays to draft the shareholders' agreement carefully when first establishing a company, as the agreement may later facilitate the everyday management of the company and the resolution of any disputes that may arise. This also applies to any other agreements and contracts the company enters into; after all, good relationships with customers, subcontractors, partners and other stakeholders are the cornerstones of successful business operations.
Contracts are drafted to ease the running of business
It is important to rely on written contracts only, and to take the time to make sure that all details are addressed in them.
A good contract makes collaboration smooth, and in the case of discrepancies it may save the parties from long and expensive legal proceedings. Hence, it would be good to think of contracts as a form of insurance in business relationships.
Living in company form
Housing companies and other corresponding living arrangements are a specific subdomain under company law.
The same principles are generally applied to the management of housing companies as to that of any other limited liability company, but certain special characteristics also affect the decision-making in and operation of a housing company.
The most important difference is that normally, the purpose of a housing company is not to generate profits for the shareholders but to enable the shareholders to live in the housing community while sharing the liability for housing and repair expenses between the shareholders.
Maintenance and alteration works as well as the seizure of the shareholder’s residence by the company are examples of situations that often give rise to disputes between shareholders.
The regulations in the Housing Companies Act set rather strict formal requirements for decision-making regarding maintenance and alteration works as well as the company’s and shareholder’s liabilities for maintenance, and non-compliance with these requirements may result in tricky disputes.
To avoid these problems, it would be good to resort to legal advice already in the preparation phase of any extensive repair and alteration works.
This applies to the seizure of the shareholder’s residence by the company because, paradoxically, the provisions in the Housing Companies Act are extremely detailed on the one hand, but fairly ambiguous on the other.
Why to choose us?
Attorney Ismo Sillanpää has advised and assisted various entrepreneurs at various stages of entrepreneurship in different kinds of matters, such as in several kinds of contract negotiations with both Finnish and foreign business partners.
He has also assisted and consulted entrepreneurs in closing down their businesses and in issues related to selling their businesses.
As part of his assignments he has also gained an extensive insight into the Housing Companies Act, and he has completed numerous assignments concerning or related to housing companies.
Asianajotoimisto Sillanpää Ltd typically works on the following types of assignments concerning company law:
- Consultation and assistance for entrepreneurs in matters related to setting up a company;
- Drafting of agreements and contracts related to business operations and shareholders’ agreements between business partners;
- Assistance in disputes and legal proceedings related to company law;
- Assistance and consultation in matters related to closing down a business;
- Acting as an official receiver when a company is in receivership;
- Consultation in matters related to housing companies and assistance in related disputes.