Legal Health Check

A Legal Health Check is a part of the legal advisory services that involves review and assessment of the company’s policies, compliances, procedures, filings, and documents in order to assess the needs and risks associated. It lays the base for the establishment of ongoing legal compliance and prevention programs in order to make sure that the company’s goals, structure, and ongoing operations are consistent with the latest developments in line with the business and applicable laws.

As one of the leading legal consulting firms, MBG offers an inclusive program as part of our comprehensive legal advisory services to conduct Legal Health Check for your business to help you minimize the risk and avoid liabilities associated with the applicable laws.

MBG is a premier legal consulting firm that provides a gamut of services but is not limited to:

• Examining the key aspects of the business structure;
• Reviewing the documents, policies, and agreements which may include:
  1. i. Key Agreements
     1. a. Shareholders Agreements
     2. b. Joint-Venture Agreements
     3. c. Business Purchase Agreements
     4. d. Non-disclosure Agreements
     5. e. Vendors Agreements
     6. f. Service Providers Agreements
     7. g. Business Transfer Agreements etc.
  1. ii. HR Policies
     1. a. Employees Policies
     2. b. Employee Handbooks
     3. c. Work from Home Policies
     4. d. Employee code of conduct policy
     5. e. PoSH Policy under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
     6. f. Leave Policy etc.

• Analyzing the compliance requirements under applicable laws, which may include:
  1. i. Corporate Laws
     1. a. Companies Act, 2013
     2. b. Partnership Act, 1932
  2. ii. Foreign Laws
     1. a. Foreign Exchange Management Act, 1999
     2. b. Foreign Trade (Development and Regulation) Act, 1992
     3. c. Foreign Trade Policies
  1. iii. Employment laws
     1. a. Factories Act, 1952
     2. b. Employees Provident Funds and Miscellaneous Provisions Act, 1953
     3. c. Payment of Wages Act, 1936
     4. d. Minimum Wages Act, 1948
     5. e. Payment of Bonus Act,1965
     6. f. Industrial Dispute Act, 1947
     7. g. Trade Union Act, 1926
     8. h. Maternity Benefit Act, 1961
     9. i. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
     10. j. Shops and Establishments Act
     11. k. Industrial Employment (Standing Orders) Act, 1946
     12. l. Occupational Safety, Health and Working Conditions Code, 2020.
     13. m. Code on Wages, 2019
     14. n. Code on Social Security, 2020
     15. o. Industrial Relations Code, 2020
  2. iV. Intellectual Property Rights
     1. a. Trade Mark Act, 1999
     2. b. Patents Act, 1970
     3. c. Design Act, 2000
     4. d. Copyright Act, 1957
  3. V. Privacy and Security
     1. a. Information Technology Act, 2000
     2. b. Digital Protection of Personal Data, 2023

• Preparing compliance manuals/checklists for ensuring compliance with the applicable law.
• Formulating a detailed analysis of the findings on compliances required by the company.

FAQs on Legal Health Check?

1. What is a Legal health check and why should a company consider it?

Legal Health Check is a due diligence system to minimize business risk by verifying and identifying the gaps in regulatory compliances that are applicable to the company and drafting a course of action to keep the company on a steady compliant track.

2. Why is the Legal Heath Check important?

Legal Heath Check ascertains the compliance requirements for the company as laid by the applicable law. It shows the current status of compliance and gives a step-by-step approach to becoming a compliant company, it also provides transparency in compliance that is viewed by all stakeholders, especially by institutional investors, and prepares the management for any impromptu legal audit for companies in India.

3. Which kind of entity should go for a Legal Health check?

Any entity including Company, Partnership firm, Sole proprietorship, Limited Liability Partnership (LLP), etc., engaged in a trade/service/manufacturing or partake in any similar activity shall comply with the applicable laws in letter and spirit. Accordingly, a business Legal Health Check can be conducted for entities engaged in trading, manufacturing, and service sectors.

4. Which laws are covered under Legal Health Check?

The laws covered under business Legal Health Check depend upon the nature of the business/industry of the company.

5. What is the process of Legal Health Check?

The process for conducting a Legal Health Check is as follows:

• Step 1: Analyzing all the applicable laws as per the nature/ structure of the business operations.
• Step 2: Discuss the applicable laws with the management of the company.
• Step 3: Preparing the compliance checklist that includes all the compliances that need to be carried out by the company.
• Step 4: Comparing the compliance checklist that is prepared in the above step with the existing compliance that is being carried out by the company.
• Step 5: Identifying the gaps in the compliance checklist as per the applicable laws.
• Step 6: Reporting these gaps to the management of the company and accordingly discussing the appropriate action to be taken.
• Step 7: Carrying out tasks to rectify the gaps so that the company complies with all the compliances.

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