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You need LEF to properly organize business activities


For company management and management, knowing the Legal Entity Framework (LEF) of their own company and that of partners (such as customers and suppliers) is essential to do business effectively. Partners wish to trust each other and LEF can help with this. At its core, it is about trusting that you are who you say you are and that you will fulfill your obligations. We talk about reputation management and the reputation manager supported by Legal Entity Management (LEM).

In this blog we discuss LEM and its significance for business operations. The Functionality Board provides SBC Management System (hereinafter SBCM) with LEM technology and unlocks company data from registers of authentic sources. What is the added value of LEM for companies and what can we expect from LEM?

What is reputation management using LEF/LEM?

Reputation management primarily concerns the current and reliable presentation of the company itself. It starts with information about the legal construction of holding companies, operating companies and partnerships such as joint ventures. The relationships are often determined by capital interest, control and profit rights. The legal structures can be commercial, tax, banking, data protection and other in nature and are dynamic. It happens that a holding company buys or sells companies or that contracts change.

There are authentic sources such as those from the Chambers of Commerce, the Tax Authorities and banking institutions that maintain LEF company data. Demonstrably knowing this data gives an impression of the reliability of this company data. Knowing this data in a time perspective gives an impression of business development.

The company builds the legal structure with a functional construction of organizational unit, which includes departments and roles. The functional construction reflects in the roles the tasks, authorities and responsibilities of the company management, management, departments and employee roles. These company details form the company authorization register. It is essential for partners to know that an employee has sufficient authority to make agreements.

Because SBCM uses the LEF taxonomy with the data definitions for building LEF, partners can know each other’s tasks and authorities. We call managing the LEF company data ‘LEM’ and the responsible role for LEM we call ‘reputation manager’.

How is LEM integrated into SBC Management System?

A company’s reputation manager manages the LEM using SBCM. Using company data from the Chamber of Commerce register, the reputation manager sets up the legal structure and supplements the company data with its own non-public company data. The reputation manager then develops the functional LEM by naming the departments and roles per organizational unit. Finally, the reputation manager links internal and external employees to roles.

The reputation manager’s work continues. Relevant changes in business operations can have an impact on the LEM. Whenever this occurs, the reputation manager implements the changes without losing the history.

If a company wants access to a partner’s LEM company data, this is only possible if the partner uses SBCM.

What are the expectations for 2023/2024?

The Functionality Board (FB) of MYOBI has developed the first User Story 001. In short:

  • Minor adjustments for ease of use;
  • Layered recording of business activities and business processes;
  • Link with the register of authentic source holders Chambers of Commerce;
  • Link with Excel or Exact online for entering internal and external employees; and
  • Link with company-specific learning environment of Duthler Academy with which the learning logistics are controlled.

The realization of this User Story is in progress and we cannot currently indicate which functionalities have been realized and when and will be put into production.

What is the added value for LEM users?

By putting functionality from the User Story 001 into production, the added value for users of the SBCM increases. From the perspective of reputation management, we give a number of examples:

  • The company presents itself to potential partners with its own LEF and the way in which the LEF company data is displayed in an authentic register, such as that of the Chamber of Commerce;
  • An up-to-date authorization register clarifies the tasks, authorities and responsibilities of employee roles in your own organization. By publishing this data with the authentic source holders, it also becomes clear to partners. Reputation management limits liability and cost risks.
  • Combining LEM and the layered organization of business activities using business processes provides insight into the internal control and security measures taken that are supported by IT systems. This information structure makes it possible to effectively carry out compliance work and meet (legal and contractual) accountability obligations.

With LEM in combination with SBCM, management can build an effective compliance organization.


We realize that LEM and the organization of business activities with business processes that are supported by IT systems and controlled by roles that internal and external employees fulfill require explanation.


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