Reform of the legal framework can become the starting point for restoring the integrity of the electoral process. This was the case, for example, in Mexico, where electoral reform became the “lever”76 for genuine democratic change. The implementation of the new electoral legislation served as a basis, a new institutional framework and the creation of different modalities of participation. These institutions have defined the procedures and methods used to strengthen the electoral integrity provisions in the new legislation. This series of reforms created the integrity framework necessary for Mexico`s electoral system. 77 We noted in the previous article that in the search for the causes that determine the prosperity of nations, it is observed that the legal framework occupies a primordial place. A great example of how not to do this properly is the Winklevoss twins, who didn`t legally document the early stages of their social media platform, allowing Mark Zuckerberg to launch Facebook with some of the code he wrote for them. It is also important for businesses to comply with their regulatory frameworks in their business plans. So how important is it© to know the legal framework for opening and operating a business? A: It is very important that the legal framework sets the terms of the game ± teaches us what rules the company must follow to start and then enter into development.27 Mar 2021 Countries that have achieved positive results in terms of business growth have applied a strong legal framework that recognizes the importance of supporting the growth of SME operations. Asset transactions that are carried out outside the law, i.e. that use legal documents but are not formalized within the legal framework, render these assets financially and commercially useless by significantly increasing their risk.
To solve this problem, the government must provide access to legality easily and quickly. The legal framework of a company is the set of laws, regulations and rules of a legal nature that govern the economic activity of a company, which derives from the constitution of the same and includes first of all the constitution of the country, the Commercial Code, as well as the laws and regulations in commercial, tax and labor matters. “In the legal framework, laws are interpreted as a set of rules that restrict the work of organizations, while their formulation, based on the approaches of the electorate, corresponds more to the need to guide the line of a particular project, in this case the social and economic growth of a nation.” The legal framework of a company consists of three fundamental areas of law, namely: Although they can be easily avoided, legal challenges are one of the main reasons for startup failure. Founders who don`t recognize their legal needs early on might realize at the end of the journey that there`s a fundamental problem with their business. The total respect of the legal framework, the improvement of commercial relations with suppliers and customers, the legal updating of everything allow us to develop and conquer new national and international markets that go beyond what the local market offers. The legal framework does not need to be complex, but it must be effective, legislation must focus its efforts on stimulating the country`s economic activity and facilitate cumbersome processes that could motivate the increase in informal trade and tax evasion. Taking into account regulatory frameworks can save your business In this sense, the legal framework is the basis that provides legal support to the product of the economic activity of the normal business operations of the company, which initially arises with the birth of legal personality and is reflected in the company`s articles of association; It is the mandatory document that gives the certainty that it will be created by legal means of the same, which will be verified before the respective commercial register of the nearest jurisdiction. We can define the legal framework of a company as all laws, regulations, ordinances and rules of a legal and mandatory nature that are subject to the economic activities of a company; be able to carry out the production process without presenting any risk or legal consequences for companies or dealers.