By Felicity Simpson

14 June 2016

The importance of an agreement that governs the relationship of the owners of a business is often not appreciated until it is too late. The most fundamental example which illustrates this point is when joint business owners discover there is no satisfactory solution to their dispute with their co-owner, and litigation becomes the only remaining option.

In such circumstances, it is integral to consider the following factors to assist in achieving a resolution:
How to address repayment of disproportionate contributions of one party?

How to address the right and ownership if the parties fall out and can no longer work together;

The ultimate goal of your business – sale to a third party, provision of income for family, longevity, etc. and how best to meet these goals.

Decision Making – by who? Who holds the balance of control? What occurs if there is a deadlock?

Key Person Insurance and how the death or total and permanent disability of a key person may impact the business, the key person’s value in the business and their families’ interest.

First and/or Last Rights of refusal for the interest holders to buy out their co-owner.

The introduction of new interest holders to the Business.

Intellectual Property Protection and ownership.

Tisher Liner FC Law possesses a wealth of experience in dealing with such matters, including: management of the sale and purchase of businesses, the structure (or restructure) of businesses, dismantling of businesses where the owners have reached a deadlock, and the sale or purchase by one owner of another owner’s interest.

We will work with your accountant to achieve a balance of the financial and legal considerations that meet the needs and expectations of the parties involved. If you do not have an accountant experienced in the area, TLFC Law can recommend accountants with whom we have well established working relationships.

Related Articles

View All
Commercial Law / Commercial Contracts & Agreements

Commercial Tenancy Relief Scheme Regulations 2021

In the technology space, this time of year is often linked with the anticipated release of the new models of Apple...
Read More
Commercial Law

Directors beware – Corporations Act changes tighten the rules for exiting Directors.

Recent changes to the Corporations Act can prevent a director from exiting and alter the effective date of resignations...
Read More
Leasing & Lease Disputes / Real Estate Agents / Commercial Law

COVID-19 – Commercial Tenancy Relief Scheme to be extended (again)

The CTRS was initially expected to end on 29 September 2020 under the COVID-19 Omnibus (Emergency Measures)(Commercial...
Read More
Commercial Law

Verification of online customers: Is your business complying with the new AML/KYC laws?

The changes apply to any business receiving funds from customers that are not already known to them This includes...
Read More
Retail Clients & Chains / Commercial Law

A win for the Tigers on the field and in the Court of Appeal

On 16 October 2020 the Court of Appeal confirmed that a ‘retail premises lease’ will remain subject to the Retail...
Read More
Commercial Law / Leasing & Lease Disputes

COVID-19 Lease Variations- How to document it properly

We have written several blogs about commercial leases and licences and the impact COVID-19 has had on them and what the...
Read More
Commercial Law / Commercial Contracts & Agreements / Corporate Advisory and M&A

Announcing our Promotions

Rob joined us in 2017 and immediately impressed us with his litigation skills and incredible work ethic It’s no...
Read More
Commercial Contracts & Agreements / Commercial Law

When contracts end: The perils of miscommunication and misunderstanding

From a practical perspective, the most critical thing for any party to a contract to appreciate is the importance of...
Read More
Commercial Law / Mortgages, Loans & Finance / Mezzanine Finance

Private lending: the red flags

Today, it may appear amicable and you do not foresee anything going wrong after the money is advanced Surely, it’s...
Read More
Commercial Law / Commercial Contracts & Agreements / Corporate Advisory and M&A

Negotiating Indemnities: Some Practical Tips

An appropriate indemnity can provide a valuable mechanism for risk allocation between parties to commercial dealings...
Read More
Commercial Law / Property & Development / Developments

TLFC Law Triple Finalists in the Lawyers Weekly Australian Law Awards 2019

Celebrating its 19th year, the Australian Law Awards, in partnership with UNSW Law, is the pinnacle of award programs...
Read More
Commercial Law / Franchising & Licensing / Real Estate Agents

Thinking of buying or selling a Rent Roll?

However, rent rolls are regulated by the Estate Agent’s Act and it is important that the contract to buy or sell the...
Read More