If you run your own business there’s no doubt you are flat out with the day-to-day demands of the business; dealing with suppliers, managing employees and trying to find time to spend with family.
You probably think you don’t have time to sit down and conduct a review of your business.
But the truth is, you can’t afford not to.
As the end of the financial year approaches it’s the perfect time for a legal check-up to plan for the success of the coming year.
What does a legal check-up involve?
Like your annual check-up with your doctor, a legal check-up will detect any underlying problems with your business and take preventative measures to minimise the risk of future unexpected hardships.
Consider the following issues:
- Is your business structure still appropriate? Is it effective for taxation and estate planning purposes?
- Do you have a partnership agreement or a shareholder agreement that governs the relationship between partners/shareholders? Does the agreement deal with the method of key personnel leaving or suffering a long term disability? Can you afford to buy out a partner if they become ill or pass away or do you have measures in place to deal with this?
- If you are in the business of supplying goods to customers when was the last time you reviewed sales contracts and terms of trade? Are you protected if a customer becomes insolvent? Have you sought personal guarantees and other forms of security?
- What arrangements have you put in place to protect your client lists and database from abuse? Do key employees have contract clauses that clearly indicate that they should not have your clients as friends on social media?
- Do you have procedures to chase unpaid accounts? Is any litigation on behalf of or against the business being managed efficiently?
- Do you understand the terms of your Lease? Is your business legally entitled to be operating from the premises?
- Do you have a Power of Attorney to make decisions in the event you become incapacitated? Is the nominated Attorney still suitable?
Chamberlains can assist you with drafting:
- Terms and conditions of sale
- Confidentiality clauses for employees
- Partnership agreements
- Shareholder Agreements
- Key person insurance agreements
If you care for the health of your business, contact our experienced and professional team today to make an appointment for your legal check-up.