Understanding the Core Responsibilities of an Auckland Corporate Lawyer
Introduction
The Auckland corporate lawyers’ main function is to support businesses, organisations, and entrepreneurs by providing a range of services and advice to facilitate commercial activity and transactions. Their work covers a wide range of activities, using specialised legal and tax knowledge to help both local and overseas businesses. Below are five principal areas of activity for an Auckland corporate lawyer.
1. Mergers and Acquisitions (M&A)
One way for a company to grow is via a takeover or merger. This is more generally know and mergers and acquisitions or M&A. These transactions are big and complex covering the ownership and transfer of shares, business valuations, tax liabilities, employment, brand and Intellectual Property, as well as the actual change in ownership.
An Auckland corporate lawyer will use the knowledge and experience to advise clients on the structuring of mergers, acquisitions, and divestments. This includes conducting due diligence, drafting sale and purchase agreements, and subsequent documentation. They will also ensure that the deal complies with the Overseas Investment Act and other regulatory requirements. They might also be involved in the negotiation, and will carry out the necessary transfers, registering of names, owners, etc.
2. Corporate Governance and Compliance
Statutory obligations and regulatory compliance are major areas of responsibility. Corporate lawyers advise boards of directors about governance matters, including the Companies Act 1993, draft or revise constitutions. Crucially they can advise directors on their duties, conflicts of interest, and shareholder rights. This is an increasingly important area given the potential for fines or penalties for directors who do not adhere to their duties.
3. Commercial Contracting
Contracts are at the core of business. Whether for trade, employment, quality standards, delivery schedules, and more, a string, enforceable contract is essential. Corporate lawyers will draft, or review contracts for their clients. They might even enter into negotiations on their behalf. Other types of agreement can include supply contracts, joint ventures, distribution agreements, and service contracts. Given the diversity of Auckland’s business landscape, each client will have a different, often bespoke need from their corporate lawyers.
4. Capital Raising and Financing
Raising capital is another key area that Auckland corporate lawyers work on. Capital raising isn’t just from public offerings on the stock market or loans from banks. Private equity, and debt financing are two common methods to raise finance or capital. The lawyer will prepare offer documents, Memoranda for share issues, and ensure compliance with the Financial Markets Conduct Act. They can also facilitate negotiations with investors and lenders.
5. Restructuring and Insolvency
In the current economic conditions, there is a significant number of companies seeking financial restructuring or even insolvency. For example, the IRD’s activity to recover unpaid taxes is a big cause of insolvency at the moment. If a business is in financial distress, corporate lawyers can help them with restructuring whether as advice or carrying out the actual changes needed. For extreme cases of financial hardship, the lawyers will provide advice on voluntary administration, liquidation, or receivership. They can negotiate with creditors for payment plans or other ways to achieve the best possible outcomes for all parties involved.
Conclusion
The role of an Auckland corporate lawyer is multifaceted. The lawyers need expertise across a range of legal and commercial disciplines. Their work can lead to growth for an expanding company or help to manage the way out for one under financial distress. Whatever type of support, advice, or assistance you need in this area, McVeagh Fleming has a team of corporate lawyers in Auckland who can help.