Good question, Ajay (seriously).
They are a good firm. I will tell you the part that doesn't make sense to me. Oilex is a small company located in Houston, Texas. Their corporate headquarters are located in Houston. Most of their active business (as far as I can tell) is in Texas. To the best of my knowledge, Oilex has been and is short of cash. Why, then, would you hire a law firm that far away from your corporate headquarters and the majority of your business? Every time you pick up the telephone to call them, it costs you more money than if you had a local firm. Every time you have to see your lawyer, you have additional costs in the form of airfare (for you or them), time, etc. We actually do have a number of very good law firms in Houston. Does it make sense for a cash starved company to create a situation that forces the company to spend additional funds for nothing? In my opinion, it does not. In addition, I believe that the same situation exists for the company's accountants. Again, we do have some good accounting firms in this area.
I have my own ideas about the reason for this situation, but I may be wrong. Perhaps you could enlighten me on the reason that you think this situation exists. |
