Business Structuring and Succession
Legal documents like partnership agreements, shareholders agreements and buy/sell agreements are essential to any business.
The way a business is structured will determine what kind of a legal agreement is required.
A business agreement can include one or more of the following:
- partnership agreement
- shareholders agreement
- unit holders agreement
- joint venture agreement
The purpose of the agreement is to govern the relationship between business owners in the day to day running of the business.
In addition, a business agreement deals with disputes, how to resolve disputes exit strategies and sale of the business or any part of the business.
The agreement also allows for a process to be followed in certain circumstances which may avoid expensive litigation and in most cases the end of the business.
Click on this link to read more about shareholders agreements, the principles of which apply all agreements referred to above.
More often than not the disposal of the share of a business partner’s interest in the business is not clearly or, more importantly, legally specified.
Some sources indicate about 80% of businesses may not have the correct legal documents in place to deal with the disposal of the interest of a deceased or permanently disabled partner.
Please click on this link where we discuss business succession in more detail.
Contact Property and Commercial Department Manager Emily Spinks (firstname.lastname@example.org or 07 5506 8214) for help with any queries you may have in relation to business structuring and succession.