For many Bow Valley businesses, the end of the year offers a chance to catch their breath after the busy holiday season, reflect, and plan for the year ahead. It can be a useful time to look beyond the financials and make sure the legal side of the business has kept pace with any changes made during the year.
With that in mind, Canmore-based lawyer Austin Ward sat down with business lawyer Renée Gilead to discuss some of the legal issues businesses should consider reviewing before year-end.
Where should a business owner start with a year-end legal review?
Start with the minute book and corporate records. Changes can happen quickly, and the paperwork does not always keep up. A business may have brought in a new owner, changed directors or officers, taken on financing, or made major decisions that need to be formally documented and approved. Year-end is a good time to confirm corporate records are accurate and required annual filings have been completed.
What financial or ownership documents should businesses review?
Look at shareholder agreements, loans, guarantees, and financing arrangements. For businesses with multiple owners, it is also worth revisiting what would happen if someone wanted to step away from the business, became unable to work, or passed away. This is particularly important in closely held businesses, where shareholders each hold an ownership interest and share authority over major decisions. Without proper agreements in place, legislation and the common law fill in the gaps.
What else tends to get overlooked as a business changes?
Insurance is one. A business may have added new services, equipment, employees, or locations without considering whether its coverage is adequate. That can be particularly relevant in the Bow Valley, where businesses may adjust their operations or expand offerings during peak seasons. Intellectual property can also be overlooked. If the business introduced a new brand, logo, or product during the year, consider whether those assets are properly protected.
Are there newer issues businesses should have on their radar?
AI usage policies are becoming critical. Businesses should assume that their employees are using AI tools, and policies governing acceptable use of AI in the workplace help establish standards and mitigate the risks of unauthorized use. A good AI usage policy provides direction on permitted vs. non-permitted use, identifies who employees can approach with questions, and establishes consequences for misuse.
Does this need to be a major year-end project?
Not at all. The goal is to identify gaps before they become problems. For a busy Bow Valley business, even a short year-end review can uncover missing records, outdated arrangements, or changes that were never properly documented, while also helping set priorities for the year ahead.
