UFA or Ultra-efficient facilitation agreement is a business document that describes the terms and conditions related to the use of fiduciary relationships in connection with commercial activities. Facilitators are corporate attorneys, accountants, corporate planning managers, and similar officers. Their role is to ensure that the transaction they are involved in provides maximum benefit to their clients. In this way, they ensure that the interests of their client and other third parties involved in the transaction are protected and maintained. A fiduciary is someone whose decisions and actions are based on his or her personal professional judgment, which is supposed to be objective and unbiased.
An individual who renders services based on such basis, is called a ‘facilitator’. In an Ultra-efficient facilitation agreement, the following five roles may be presented: a sponsor, a point of contact, a facilitator and a policymaker. As mentioned above, a sponsor is the corporate official who is responsible for the overall policies related to the projects in consideration. As a sponsor, one would be able to provide expert advice to the client’s advisor. The policymaker is a person who has the responsibility of drafting and reviewing the contract.
The aim of the company is to achieve its objectives. Therefore, all legal advice provided should have regard to the company’s objectives. There is a big difference between giving advice and being engaged in the actual activity. Expertise in this area comes from a number of different areas including business law, accounting, economics, ethics, communication, and management. Each of these areas has its own contribution to make to the overall structure of the venture.
Corporate law is primarily concerned with the protection of the assets and rights of a business. This area of law also deals with the establishment of a company, its various divisions, its shareholders, the directors and employees of a company, and finally, the tax status of the business. Other aspects of it include taxation, mergers and acquisitions, and changes to the business structure.
It is the duty of the UFA to keep up the status of the company. If any major changes are made to it, the UFA should immediately inform all of the clients of these changes. It should also provide the clients with an advisory when the company is in distress. This advice can come in the form of a crisis meeting or an emergency board meeting.
The UFA has the duty to manage the legal and accounting aspects of the business. This would include maintaining the journals of accounts and ensuring that the accounts are current. They also have the duty of collecting the payment for the services rendered by the UFA as well as processing the pay slips. When the pay slips are received, the duties of the UFA include settling the accounts with the clients, consulting them about any pending bills, and preparing the tax returns.
The UFA should give the clients sound advice. Their advice should not be based on hearsay or on the non-recourse basis. If the company is facing a financial crisis, the UFA should first seek advice from the CPA. If they find that the company is solvent, then the CPA would be the best person to give the advice to the client. On the other hand if there is a financial crisis, then the UFA can do the analysis for the clients.
The UFA can also provide general advice to the clients. They are able to do this through seminars and workshops. However, their primary function is as the company that represents the interests of the lenders. In such a case, the advice offered by the UFA would be tailored according to the needs of the client and the company.