An importer’s legal framework is as vital as the disposable goods it brings in doo-doo-doo-doo-doo…

Max Top Synergy (M) Sdn Bhd is a significant player in the Malaysian disposable goods import & distribution industry (the above image looks like something for a ‘jungle’ conference, but you get my gist). Its disposal tools, cutlery, and other disposable goods are so ubiquitous that many owners or operators of food & beverage outlets may very well expect the company to be a supplier of choice. However, not everything disposable can be imported and distributed with ease. While synergies are obviously the name (and product) of the game here, Max Top’s management should obviously be mindful that their business operations should have a correlating immovable legal framework in order to support maximise its business objectives. In short, the company’s legal counsels must have a company lawyer job description. Evidence of this is in the guy who imports the Styroform cups. He has to make sure that they’re safe. Is there any real risk that they might be contaminated with Styrene? Perhaps when they are made, but a supplier won’t sell cups to you if you don’t comply with the safety regulations. Can we safely assume that? A lawyer who works with Max Top on a regular basis can mitigate these and other possible risks inherent to its industry. With the first part of our checklist done, Max Top of course still has to deal with its employees, customers, suppliers, and all the other Hallmarks of what a company might experience in the course of its daily business.

What does a company lawyer do? Much of the company lawyer job description is actually much more detailed than you would think. “Mitigating risk” can be quite tedious. That said, he or she would also be able to oversee commercial agreements, not just between Max Top and the food outlets, but with suppliers, manufacturers, and even others in the industry who want to collaborate. They would also need to ensure that the business complies with the various laws governing (among other things) company registration and taxation. Lawyers are not evil masterminds with shields, and more than an occasional trip off the top rope would be required to see off Godzilla. While there would certainly be plenty of instances when things go wrong (we’ll talk about joint ventures and franchising another time), more mundane matters would require a lawyer to negotiate on behalf of a company like Max Top, such as: Company operations, particularly for a distributor of disposable goods, requires a lawyer to be knowledgeable about the industry’s greatest hits.

This relates to things like: Of course, the easiest way for a company to become familiar with the legal requirements of its industry would be to hire a dedicated legal advisor – someone that its executive can call every time a problem comes up, without incurring huge fees. This is why businesses like Max Top tend to either have in-house lawyers, or hire lawyers on retainer who are able to offer a few hours of legal input for a monthly or quarterly fee. Max Top would be a prime example. Of course, there are other players in the disposable goods industry. Examples include Sun X, which supplies, among other things, pop corn bags and paper wrappers; and Fong & Tan, who distributes cups, plates, and the like – we could even look at foldable paper egami bowls (ed bengkai!). All of them have agreed contractual arrangements with registered suppliers or manufacturers that allow them to import from overseas, such as Fong Swee Hock, who imports from China. All of them have possible disputes tied to joint ventures or other arrangements in order to enter Malaysia and sell their disposable goods.

Some might even find that they want to franchise their business model in order to expand. Things can go wrong or right; because that’s how the world is. These are but some of the many ways in which a company lawyer’s job description supports the day-to-day running of a food outlet distributor and importer. Having a firm grasp of the legal requirements for operating a business in the food industry would prevent Max Top or its competitors from getting involved in litigation with any authorities. That’s always good. At the same time, the ‘synergy’ between Max Top and its lawyers allows the company to apply for grants such as encouraging R&D from government agencies. All in all, there is no true way of determining whether Max Top or its competitors will survive the next decade. What we know for a fact is that individuals like those who constitute its board of directors will certainly understand the benefits of a company lawyer’s job description.

For more information on legal frameworks in business, you can visit Wikipedia’s Business Law page.