Clarify who the lawyer represents when company and director are named
Clarify legal engagement scope and possible separate advice when both company and director face allegations.
Corporate Recovery Partners
01 / 06
One set of papers can involve different interests
Court papers name the company and you personally. Before assuming one response covers both, ask the lawyer to explain whom the engagement represents and what issues it addresses. Seek advice promptly about every relevant response date. The company's position and your own may require different analysis, even when the underlying dispute concerns the same project.
Imagine a director sued alongside a construction company over an unpaid account and an alleged personal promise. Give the lawyer the whole document set, not just the company invoice. Identify the guarantee or correspondence said to create personal responsibility. Avoid describing the personal claim as merely a duplicate before an adviser has assessed its basis.
business.gov.au recommends clear contractual terms and explanations of wording that is not understood. Apply that approach to the professional engagement. Ask who the client is, which matters are covered and how additional work is authorised. Paying an invoice through the company does not answer every question about whose legal interests the advice is intended to protect.
Tell the lawyer about relevant disagreements between directors or between you and the company. Ask whether separate representation or advice is needed. In the construction example, an argument about who authorised a statement may matter to more than one party. Do not conceal a difference because it feels disloyal or assume sharing an office makes the interests identical.
Ask how documents and communications should be handled, including any confidentiality or privilege questions. Preserve the originals and provide accurate facts through the appropriate channels. Avoid circulating legal advice broadly or forwarding one person's advice to another without checking. Practical coordination can reduce confusion, but it should follow the lawyers' directions about the particular matter.
Record who handles each response, who can give instructions and which dates require attention. Ensure any insurer arrangements are also explained where relevant. The objective is a clear defence and advice plan for each affected party, rather than discovering late that the company engagement did not answer the personal question you thought it covered.
