Founding a company is a lot easier than retaining control of it. Part of your journey will necessarily involve other people. First, it may be a co-founder. Then family and friend investors, and ultimately professional investors. During this evolution, the chances of you being left behind, and things getting out of control, increase exponentially. We’ll help you get back in control, with a binding entitlement to what you’re worth.
As a general rule, a company provides its shareholders with ‘limited liability’. This means that the extent of resources a shareholder risks when they invest in an enterprise is limited to the amount of capital they put into the company (or agree to put in). If the company runs out of resources, or gets hit with a nasty surprise, the capital may all be lost, but the shareholders are not obliged to put anything additional in. They have just ‘done their doe’. The limitation of liability for shareholders has not really changed much over the centuries that limited liability companies have been around. What has changed, is the role and responsibility of directors.
As a general rule, Budgets try to please as many people as possible, and upset as few as possible. This strategy is even more important for a Budget in an election year - when short-term memories are still likely to be working on polling day.
Here are some reasons why you should think about a Constitution for your company, rather than simply adopting the 'replaceable rules' in the Corporations Act.
The ATO is using Director Penalty Notices more often. However, the ATO officers are only human and they can make mistakes. There are four main ways in which your DPN may be challenged.
Company title is rare and unusual. If you are selling it then you should have experienced lawyers to help you.
Most Shareholder Agreements, Constitutions and Partnership Agreements provide 'pre-emption' rights. These are rights that require someone wanting to sell an interest in the enterprise, to first offer the interest to the other equity holders. But they do not necessarily require the majority to buy.
Many businesses have built strong brands by treating customers well. But it is also important to ensure that no single customer can put your business at risk. You need to draw the line somewhere. This is where your terms of supply come in. However, these terms need to be consistent with the Australian Consumer Law.
If you're thinking of selling your business, we bet there are 2 key outcomes you are looking for: 1. Getting the highest purchase price possible; and 2. Being able to make a clean break from the business, so you can think about something else (and maybe even relax or take a holiday). These outcomes are both realistic and achievable, but it will take some planning before you put the business up for sale.
We are not advocates of higher taxes. But, we are advocates of honest tax policy. So read 'company tax cut' as essentially a reduction in Australian tax on foreign investment. Full stop.
We’ve all heard about the increasing prevalence of data ‘breaches’ and ‘hackings’. Some well-publicised examples include: The hacking of Microsoft’s Business Productivity Online Suite in 2010; The theft and publication of 6 million user passwords from LinkedIn in 2012. This was followed up in May 2016, when hackers stole and posted for sale on [...]
- What’s the best structure for my startup? GalleryAdvisor Interest, Areas of Law, Business Interest, Commercial/Business, Companies, Facebook Published, Individual Interest, LinkedIn Published, Marketing, Newsletter Published, Newsletters, Structures, Twitter Published
When asked what structure to use, we like to apply several key principles and ‘rules of thumb’ to get the right answer.
What is the ESS 'start-up' concession and how do you qualify for it?
How do you calculate the extent of any 'discount' when an interest under an employee share scheme is granted to an employee?
How do you qualify to defer any tax otherwise payable on shares and options acquired under an employee share scheme? When does the deferral come to an end?