Hamilton Ontario Business Law Blog

Protection against business litigation after a product recall

The manufacturing industry does what it can to produce quality, safe products for the residents of Canada and the world. However, the manufacturing process is not always perfect.

It may become necessary to issue a recall if a defective or dangerous product gets released to consumers and inadvertently causes harm. This type of situation could make a company vulnerable to litigation regarding any injuries suffered because of the product.

Investigating harassment in your company

Like many who run businesses, you may aspire to create a work environment where your employees feel like family. You may hope they will enjoy working together and, perhaps, even spend their free time socialising and supporting each other. Even if you do not expect your employees to become fast friends, you will at least want them to get along and to show respect for one another.

Unfortunately, even careful hiring practices do not always eliminate the possibility that the actions or behaviours of one or several employees will make others feel uncomfortable, harassed or even bullied at work. When this happens, it is your responsibility to deal with the situation appropriately. However, you are an employer – not a parent – so your actions must comply with the relevant laws related to workplace harassment.

Is "going public" a good option for your business?

CEOs, directors and most everyone invested in the success of a corporation likes to see the business grow. Many senior leadership teams in corporations develop some sort of growth strategy. Certain strategies succeed, while others may not deliver as expected.

One component of some growth strategies is the ability to raise money in order to fund new ventures or initiatives. A common way to raise money quickly is by offering the sale of company shares to the public.

Data breaches can bring complex legal matters

It is no longer enough to lock the doors of your business at night and expect your valuables and confidential information to remain secure. If you use any kind of digital communications, store information on computers with online access or transact business digitally, your company is at risk.

No matter what industry your business serves, you must be aware of the danger and be proactive to prevent data breaches.

How can you remove a member from your LLC after its formation?

When you initially form a limited liability corporation (LLC), you work with a group of people who have similar goals and values in order to take an idea and turn it into a viable business. These people become investors or members who have a financial – and perhaps operational – interest in the business you form together.

However, it is possible for your hopes and values to diverge from theirs at some point after the business begins operation. If you find yourself in a circumstance where a member of your LLC no longer gels with the company’s goals, you may need to take action to remove them. Doing so will likely involve a careful review of your existing contract and a specially tailored or negotiated offer.

Are there benefits to setting up a shell company for my business?

Virtually all companies have employees and provide either goods or services to the public. However, this is not the case with shell companies. The primary goal of shell companies is to manage funds on behalf of another company, which typically does have employees and does offer something to customers.

While it is legal to create a shell company, they can also be used to commit crimes – so it’s important to understand how to operate such a company legally. 

How to avoid contract disputes

No matter the size of your company, contracts will be a crucial aspect of your business. You will need them to get started, and you will need them to grow. You may need contracts with vendors, employees and clients in the course of operations. It is essential that these contracts be legally binding and advantageous for your business.

A bad contract with loopholes can lead to logistical problems—or worse—costly litigation. Your business requires astute care in setting up agreements to avoid potentially negative consequences later on. Here are six tips to doing contracts right – and avoiding contract disputes down the road:

Court of Appeal helps employees receive more for wrongful dismissal

A fundamental principle of wrongful dismissal damages holds that damages compensate employees for their actual economic loss. As an employee, if you win a wrongful dismissal case, you are entitled to receive severance pay for a notice period determined by the court. However, this award only applies to income you lost during that notice period.

If, for example, the court sets a 20-month notice period for your case, then you would be entitled to severance pay for 20 months. If you found new employment after 10 months, however, then you would only receive compensation for lost income from the first 10 months – not the full 20 months.

What to do when your business partnership sours

Entering into a business partnership is common for entrepreneurs, especially when they find someone with similar ideas and ambitions. But ideas change, ambitions transform and partnerships can grow cold.

A partnership can go bad for many reasons. Regardless of the issue, it’s critical for both you and your business partner to move forward in a way that mitigates damages.

Tips for investing in stocks

There are a few helpful research tips you may want to consider before you delve into the buying and selling process of trading stocks. It's essential that you also seek legal counsel on what your legal obligations and rights are when buying and selling stocks. Certain situations, such as insider trading, can prove to be costly and could jeopardize your business interests.

Consulting with business lawyers experienced in the complexities of reviewing financial agreements and corporate transactions will allow you insights on any legal questions or concerns you may have.

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