Law and company registration

Economic crisis is not the cause of business collapse

Many businesses today have been brought down not only by the global recession but also by mismanagement. It is not in order to assume that the global economic crisis should only be working against your business. Many managers who are failing today are blaming the bad economic conditions for their poor performance. A good business manager should be able to look for effective ways of handling a bad situation and getting the best out of it.

One of the most deceiving business ideas is that by putting your eggs indifferent baskets, you are going to be successful. Most of the managerial trainings include what is commonly called ‘portfolio management’. This theory supports the idea of investment diversification. This is why managers think that during bad financial moments for the business, they need to diversify their investments in order to reduce the risk of losses. This may not be a solution if the management style is wrong. A poor manager will still fail even in a diversified portfolio.

Many are left wondering about what they should do if diversification is not working. The truth is that diversification should only be left for those who are not sure of making it in one line. Instead of diversifying your investments, you should be thinking of specialization.

You should be looking for the best business strategies that can make you a king in your line of operation. Unfortunately, many business managers view success as only retaining some profits for the business. Very few people are endeavoring to be the most outstanding businessmen.

Tuesday, October 6, 2009

Law and company registration

Are you in a business where you and other partners are unsettled whether to register the business or not? You may also have begun a business that you are not sure whether to turn it to an officially registered entity. The truth is that you do not need to hesitate any more. Business registration will bring you many advantages that you may not be seeing at the moment, build your business confidence and improve your public image.

To begin, understand that a registered company is a corporation, that is, a separate legal entity distinct from its members. To be more precise, the debts and the contracts of a listed company are those of the business and not of the members. This benefit extends to the fact that unless the business is wound up, it has perpetual succession. This is simply means that it is not affected by death, bankruptcy, mental disorder or retirement of any of its members.

The property of a registered company belongs to and vested in the company, so that there is no change in the ownership of, or in the formal title to, the property on a change in the ownership of shares in the company. A listed business can therefore contract with its members and can sue and be sued on such contracts.

One of the most important things to note is that the number of people in a private registered company cannot exceed fifty persons but there is no limit on the number in a public one, but, except in cases such as certain partners are practicing professional men as accountants, solicitors, stockbrokers, agents, surveyors, actuaries and so on.