In the course of business, businesses often face a lot of risks. One of the most common risks is legal risk. In the article below, lawyers would like to share to our customers the common legal risks:
Firstly, it is necessary to understand what are “legal risks”?
Legal risks are the events that affect business activities of enterprises related to legal policies that businesses do not anticipate.
Secondly, classification of legal risks:
Subjective risks (predictable):
– Internal risks:
+ Disputes on capital-contributing members: Disputes over the right to manage and administer; Dispute company assets; Disputes during the process of selling, transferring or donating contributed capital; Dispute financial statements data; Disputes over contributed capital as real estate; Disputes over decision authority; Disputes over control; …
+ Labor disputes: Disputes terminating labor contracts; Dispute wages; Dispute severance allowances, job loss allowances; Dispute working time, rest time; Disputes over labor safety and labor discipline;…
+ Disputes on social insurance: Disputes on the level of social insurance payment; Disputes over social insurance procedures; …
+ Taking advantage of the name to cause damage to company assets: Loss of assets due to weak internal control procedures; Sign unauthorized transactions; Personal benefits such as: getting commission, declaring price difference, selling contracts …
+ Internal theft: Stolen during warehousing and exporting; Stealing in the process of producing, trading goods; Stolen due to other causes.
– Risks from disputes with external parties:
+ Contractual disputes: risks of subjective capacity, risks of validity of negotiation results, risks of legal validity after negotiation.
+ Dispute outside the contract: sued for infringement of intellectual property rights, …
– Risks to state agencies:
+ Tax obligations: Tax offenses, tax arrears, …
+ Obligation of social insurance: sanctioned for paying social insurance for employees, …
+ Administrative violations: Violation of regulations on environment, fire prevention, …
Objective risks (unpredictable):
– Risks from legal policies: newly born legal policies affect business activities, increase competition of other businesses, …
– Other objective risks: Natural disasters, epidemics, newly born technology make existing technology of enterprises obsolete, …
Thirdly, the main causes of legal risks for enterprises include:
– Enterprises do not have the habit of obeying and respecting the law;
– Limited legal knowledge of key personnel of the enterprise;
– Lack of preparation for knowledge related to upcoming transactions;
– Lack of anticipation of common legal risks;
– International business practices are complex, Vietnamese business position is too young in international trade transactions;
– Lack of experience in controlling business processes;
– Lack of experience in anticipating potential legal risks;
– Lack of experience in dealing quickly with legal risks before consequences occur.
– Enterprises do not have the habit of using their own lawyers;
– Preparation work to perform poor negotiation and signing of contract;
– Lack of experience in organizing management apparatus;
Come to tinhanhphapluat.com, your business will be consulted specifically, detailing each issue related to legal risks of the business by a team of experienced lawyers and experts. Please contact us at hotline 0984624444 or email “hotro@tinnhanhphapluat.com” for support quickly.
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