Hey Partner, we need a Buy-Sell Agreement
If you have business partners, you need to consider what will occur when a partner wants to retire or suffers death or disability. One way to minimise the chaos, and control the order of events, is to design and execute a buy-sell agreement.
Is your dental practice in need of a brush and floss?
We have a lot of dentist clients who have downed tools during the Level 3 restrictions. One thing they have in common is that they’re making lemonade out of lemons and getting their practices ‘shipshape’ for when the restrictions are downgraded back to Level 1 or 2. If this sounds like you, read on!
Company Constitutions v Shareholders’ Agreements
When people go into business together it’s common for them to enter into a Shareholders’ Agreements to govern how they will own and administer their company. Our preference is to use a tailored version of the company’s ‘Constitution’ as the primary instrument to regulate the affairs of a company. Our reasons are:
Does your company need a Constitution?
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.
How do pre-emption rights work?
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.