Termination of Agency Agreement


  1. Termination by expiration of the specified period in which the agent has to act. The courts say that the agency was for a “reasonable” time if no specific duration was stated in the agency agreement. The meaning of “reasonable time” is construed by the courts on a case-by-case basis, depending on the nature of the agency, the difficulty of accomplishment, and other controlling factors.
  2. Termination by specific agreement to do so between the principal and the agent.
  3. Termination by death or legal incapacity (insanity and so on) of either the principal or the agent. Most courts also hold that bankruptcy of either the principal or the agent terminates the relationship. However, the agent may still dispose of the principal’s property that is being held at the time of the bankruptcy.
  4. Termination through revocation by the principal. The agency contract is one that the principal is allowed to end at any time without giving any reason.
  5. Termination by withdrawal of the agent. This may be done at any time in an agency at will. If the agent is operating under a contract for a specified time of service or until a certain event is accomplished, the agent will be liable of damages to a principal who was not at fault in bringing about the termination.
  6. Termination by loss or destruction of the subject matter or by change of circumstances. The agent’s authority is lost if the subject matter is seriously disabled, lost, or destroyed.
  7. Termination by rescission. The general rules of law concerning rescission apply to agency contract.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Coping with Red Tape


No business operates in a vacuum or under a glass dome. New businesses are subject to the pressures and requirements of society’s legal and regulatory system. If you need a trademark, a company brand, or a patent, or if you’re thinking of becoming incorporated, you will definitely need legal help. Many other situations require the help of a lawyer too.

Likewise, you’ll be coping with government regulations, many of which were written with larger businesses in mind are applied to SMEs anyway. Disposing off hazardous wastes, for example, may be difficult for small companies, which typically lack their own water-treatment facilities. Similarly, small businesses may have problems complying with disabilities laws, designed to ensure that disabled consumers receive the same level of services as other customers. Thus SMEs may be required to make costly modifications to their facilities or prove that doing so would pose an economic hardship.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Corporate Governance


Corporate governance refers to the overall control of a company’s actions. Several key stakeholder groups are involved in governing the corporation.

  • Managers occupy a strategic position because of their knowledge and day-to-day decision making.
  • The board of directors exercises formal legal authority over company policy.
  • Stockholders, whether individuals or institutions, have a vital stake in the company.
  • Employees, particularly those represented by unions or who own stock in the company, can affect some policies.
  • Government is involved through the laws and regulations.
  • Creditors who hold corporate debt may also influence a company’s policies.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Trademark


A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design. People are often impressed by certain brand names, even though they say they know there is no difference between brands in a given product category. For example, when someone who says that all aspirin is alike asks for an aspirin, put two bottles in front of him—one with Excedrin label and one labeled with an unknown brand. See which one he chooses. Most people choose the brand name even when they say there is no difference.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Greening of Management


Environmental regulations, such as the laws governing clean air, water, and land establish minimum legal standards that businesses must meet. Most companies try to comply with these regulations, if only to avoid litigation, fines, and, in the most extreme cases criminal penalties. But many firms are now voluntarily moving beyond compliance to improve environmental performance in all areas of their operations. Researchers have sometimes referred to the process of moving toward more proactive environmental management as the greening of management. Green management can improve a company’s strategic competitiveness.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Thinking Before Signing a Franchise Agreement


A franchise agreement is a legally binding contract that defines the relationship between the franchise and the franchiser. Because the Agreement is drawn up by the franchiser, the terms and conditions generally favor the franchiser. You don’t necessarily have to agree to everything on the first go-round. Maybe you can negotiate a better deal. Before signing the franchise agreement, be sure consult an attorney. Here are some tips you must consider before signing the agreement:

  1. Are your legal responsibilities as a franchisee clear? Are your family members similarly obligated?
  2. Who is responsible for selecting the location of your business?
  3. Is the name or trademark of your franchise legally protected? Can the franchiser change or modify the trademark without consulting you?
  4. Has the franchiser made any oral promises that are not reflected in the written franchise agreement?
  5. What are your renewal rights? What conditions must you meet to renew your agreement?
  6. Do you have exclusive rights to a given territory or could the franchiser sell to additional franchisees who would become your competitors?
  7. Under what terms are you allowed or required to terminate the franchise agreement? What becomes of the lease and assets if the agreement is terminated? Are you barred from opening a similar business?
  8. Under what terms and conditions are you permitted or required to sell some or all of your interests in the franchise?
  9. Are you required to buy supplies from the franchiser or other specified suppliers? Under what circumstances can you choose your own suppliers?
  10. Has your attorney studied the written franchise agreement? Does it conform to the requirements of Government rules?

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Contractual Relationship


A contractual relationship exists when employers and employees have a legal agreement regarding how employee issues are handled. Under such contractual arrangements, discharge may occur only if it is based on just cause. Inasmuch as a distinct definition of just cause does not exist, they are guidelines derived from labor arbitration of collective bargaining relationships under which just cause can be shown as follows:

  • Was there adequate warning of consequences of the worker’s behavior?
  • Are the rules reasonable and related to safe and efficient operations of the business?
  • Before discipline was rendered, did a fair investigation of the violation occur?
  • Did the investigation yield definite proof of worker activity and wrong doing?
  • Have similar occurrences, both prior and subsequent to this event, been handled in the same way and without discrimination?
  • Was the penalty in line with the seriousness of the offense and in reason with the worker’s past employment record?

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Codes of Ethics for Financial Executives


Financial Executives International (FEI) recommends that all senior financial professionals adhere to a strong ethical code of conduct, sign it annually, and deliver it to their company’s board of directors. Fr many years, members of FEI have signed such a code, in an effort to commit to its principles. Senior financial officers hold an important and elevated role in corporate governance. As members of the various management teams, they are uniquely capable and empowered to ensure that all stakeholders’ interests are appropriately balanced, protected, and preserved.

FEI’s code provides principles to which members are expected to adhere to and to advocate. It embodies rules regarding individual and peer responsibilities, as well as, responsibilities to employers, the public, and other stakeholders. Violations of EFI’s Code of Ethics may subject the member to ensure, suspension or expulsion under procedural rules adopted by FEI’s Board of Directors. The code states that all members of FEI will:

  1. Act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationships.
  2. Provide constituents with information that is accurate, complete, objective, relevant, timely, and understandable.
  3. Comply with applicable rules and regulations of federal, state, provincial, and local governments, and other appropriate private and public regulatory agencies.
  4. Act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing one’s independent judgment to be substantiated.
  5. Respect the confidentiality of information acquired in the course of one’s work except when authorized or otherwise legally obligated to disclose. Confidential information acquired in the course of one’s work will not be used for personal advantage.
  6. Share knowledge and maintain skills important and relevant to constituents’ needs.
  7. Proactively promote ethical behavior as a responsible partner among peers, in the work environment and the community.
  8. Achieve responsible use of and control over all assets and resources employed or entrusted.
  9. Report known or suspected violations of this Code in accordance with the FE Rules of Procedure.
  10. Be accountable for adhering to the Code.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Principles of Crisis Management


What does one do when a crisis comes? There are some principles, not rules that can be useful to managers facing a crisis:

Define the real problem: Crises tend to face managers to think short term and focus on the narrow problem at hand. The crisis management team should ask several reflective questions: What would constitute a good job in managing this crisis? What can we accomplish? What is impossible?

Set Goals and Define the Crisis Strategy in Light of Those Goals: The urge to act first, think later is hand to resist when facing a crisis. The better the course is to have some managers actively thinking about the goals—What do we want to accomplish? How do we want to be perceived by the media? By our shareholders? By our employees and customers?

Manage the flow of Information: Experts advise managers to tell the story their way, consistently, and frequently. Because electronic media repeat crisis stories quite frequently in a typical news day, managers have an opportunity to correct errors and should not permit an erroneous statement to stand unchallenged.

Adopt a Team Approach: It is important to have one spokesperson designated at the outset and available to act on the company’s behalf immediately. Successful companies have thought in advance about the skills each crisis team should possess. Legal, media, and government relations skills are essential in many crisis situations.

Plan for the worst case: A crisis always has the potential to worsen, and managers need to anticipate the worst case possibility. It is tempting to assume a crisis will pass and the world will return to normal. It is wise to prepare for the worst.

Plan on the Situation Getting Worse: By doing so, an organization can begin to see ahead and create contingency plans for communicating with key stakeholders, deploying resources, and organizing other companies and people for action.

Follow up after the Crisis is Over: Many contacts with stakeholders occur during a crisis. A company can restore its image and reputation by dedicated follow-up to stakeholders.

Use Technology: Information technology can be a powerful aid to a company facing a crisis and needing to communicate with stakeholders. A company should measure the effectiveness of communication message through polling, surveys, and focus-group interviews.

Don’t Give up: As bad as it can be for an organization, a crisis rarely destroys a well-managed business. Leadership is vital if an organization’s internal and external stakeholders are to believe that there is a bright future beyond the crisis.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Sole Proprietorships


Sole proprietorships, businesses owned and operated by one individual, are the most common form of business organization. Sole proprietorships are generally managed by their owners. Because of this simple management structure, the owner/manager can make decisions quickly. This is just one of many advantages of the sole proprietorship form of business.

Ease and Cost of Formation: Forming a sole proprietorship in relatively easy and inexpensive. In some countries, creating a sole proprietorship involves merely announcing the new business in the local newspaper. Other proprietorships, such as barber shops and restaurants, may require state and local licenses and permits because of the nature of the business. No lawyer is needed to create such enterprises, and the owner can usually take care of the required paperwork.

An entrepreneur starting a new sole proprietorship must find a suitable site from which to operate the business. Some sole proprietors look no farther than their garage or a spare bedroom that they can convert into a workshop or office. Computers, personal copiers, fax machines, and other high-tech gadgets have been a boon for home-based businesses, permitting them to interact quickly with customers, suppliers, and others. Many independent salespersons and contractors can perform their work using a notebook computer as they travel. E-mail and cell phones have made it possible for many proprietorships to develop in the service area.

Secrecy: Sole proprietorships make possible the greatest degree of secrecy. The proprietor, unlike the owners of a partnership or corporation, does not have to discuss publicly his or her operating plans, minimizing the possibility that competitors can obtain trade secrets. Financial reports need not be disclosed.

Distribution and Use of Profits: All profits from a sole proprietorship belong exclusively to the owner. He or she does not have to share them with any partners or stockholders. The owner decides how to use the profits.

Flexibility and Control of the Business: The sole proprietor has complete control over the business and can make decisions on the spot without anyone else’s approval. This control allows the owner to respond quickly or competitive business conditions or to changes in the economy.

Government Regulation: Sole proprietorships have the most freedom from government regulation. Most government regulations apply only to businesses that a certain number of employees, and securities laws apply only to corporations that issue stock. Nonetheless, sole proprietors must ensure that they follow all laws that do apply to their business.

Taxation: Profits from the business are considered personal income to the sole proprietor and are taxed at individual tax rates. The owner pays one income tax.

Closing the Business: A sole proprietorship can be dissolved easily. No approval of co-owners or partners is necessary. The only legal condition is that all loans must be paid off.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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