Against the current backdrop of uncertainty throughout the country and Chester County, the importance of ensuring the security of our families, homes, and businesses has never been more apparent. While, as a society, we most assuredly will survive, and thrive, as we have in the past in the face of extreme challenges, the coronavirus pandemic presents a perfect opportunity for us to re-evaluate the details of our business lives.

How many of us now wish we had contingency plans in place before having had to meet this new challenge? Many of us find ourselves racing to respond to the current crisis with novel technological solutions, public health protocols, and working configurations to meet the changed circumstances. It has never been more important to ensure that we have contingency plans in place that we can call upon to implement seamlessly and quickly when needed.

As COVID-19 takes hold, it may be that some small businesses will experience a crisis in leadership which may, in turn, reveal deficiencies or overlooked necessities in internal business planning. While most small businesses are careful to create properly-executed organizational documents when they start their businesses, business owners often bury the documents in a drawer until there is a dispute, sale or, worse, until one of the key “deciders” suddenly becomes incapacitated.

The current emergency should be a reminder to all small businesses of the importance of periodically reviewing organizational, structural and other internal documents, to ensure that the protocol for election of officers and directors, details of shareholder or management agreements (specifying the exact percentages of ownership, buy-out conditions and succession planning) remain up-to-date, workable and fair. However, because even the best legal documents in the world may not be of any use in preventing a business or family meltdown if the shareholders/members are not diligent in revising the legal framework periodically––at least annually––and engaging in the structural meetings, votes, and deliberations necessary to keep the business on a smooth track, it is also necessary to review these documents with your attorney on an ongoing basis.

COVID-19 has demonstrated our global interconnectivity in ways that can feel destabilizing to us all in the face of the enormity of this crisis. The silver lining to this pandemic is that it provides an occasion for focus on, and assess, the ways in which we engage with our immediate surroundings and the greater world. Taking the opportunity to assess things we can control, for example, the structural documents in our small businesses, may provide invaluable reassurance in what will likely be a challenging period ahead.

If you have questions or concerns regarding your business, Lamb McErlane can help. 610-430-8000.

 James “Jim” C. Sargent is a Partner and Co-Chairman of Lamb McErlane’s Appellate Advocacy Group and Litigation Department.  Jim represents small businesses, as well as major national and multinational manufacturers in litigation and appeals.  His practice also includes commercial contracts, real estate and banking law, construction litigation, restrictive covenants, and employment contracts. jsargent@lambmcerlane.com. 610-701-4417.

Click here to view the article published in Vista.Today.