The importance of a proper legal folder

Not only in the context of acquisitions should you, as an entrepreneur, be able to present the necessary documentation immediately. Even outside of that context, it is strongly recommended to have all legal documents relevant to your company readily available.

For example, a prospect might request proof of professional liability insurance during the pre-contractual phase. Save yourself time and stress during busy periods by proactively keeping your legal folder well-organized and up to date.

In general, an efficiently structured legal folder contributes to the smooth functioning of your business and improves your internal legal risk management — both from an internal and external perspective — helping to avoid misunderstandings. Think, for example, of having the most recent version of your general terms and conditions readily accessible in a designated folder.

Below is a suggested structure for your legal folder:

1. CORPORATE

a. Minutes of Board of Directors meetings

b. Minutes of General Shareholders’ Meetings

c. Company structure and articles of association

- Deed of incorporation

- Amendments to articles

- Coordinated version of the articles

d. Company registration (e.g. in the Crossroads Bank for Enterprises)

e. Share register and group structure

f. UBO (Ultimate Beneficial Owner) register

g. Other

2. COMMERCIAL

a. Clients (create a subfolder per client — potential link with CRM?)

b. Suppliers (create a subfolder per supplier)

c. Contract templates

3. HR

a. Employment contracts (create a subfolder per employee)

- Manual workers

- White-collar employees

b. Subcontractor agreements (create a subfolder per subcontractor)

c. Work regulations

d. Payroll service provider

e. Templates

4. REAL ESTATE

Covers company real estate — owned, leased, or otherwise held.

5. INTELLECTUAL PROPERTY

Domain registrations, trademark registrations, other IP rights.

6. WEBSITE LEGAL DOCUMENTATION

Cookie policy, privacy policy, disclaimer.

7. INFORMATION SECURITY & GDPR

8. INSURANCE

9. FINANCING, GUARANTEES & COLLATERAL

Bank affairs, loans, subsidies, and other forms of financing or security.

10. SPONSORSHIPS

11. PERMITS & ENVIRONMENTAL COMPLIANCE

12. INTERNAL POLICIES

13. DISPUTES

14. OTHER

Please note: The structure above is just one possible setup. Depending on your business and sector, another structure may be more appropriate. Use the above as inspiration to ensure all relevant legal topics are covered.

If your business consists of multiple legal entities, it’s advisable to create a separate folder for each company.

Finally, don't forget to restrict access to the folder. Employees should only be able to view confidential information that is necessary for their role. Consider developing a parallel authorisation/access control system.