A shareholders’ agreement is a binding contract that regulates the rights and obligations of shareholders. Such agreements establish rules governing the operation of companies and how specific events must be conducted. Unlike the replaceable rules or a constitution required by the Corporations Act 2001 (Cth), shareholders’ agreements are not compulsory. However, upon incorporation, or when [...]
Often the first fundamental question a lawyer will ask when requested to prepare documentation for a sale of a business is: Are you conducting an Asset or a Share sale? Whilst for the most part this is a fairly straightforward consideration, oftentimes buyers and sellers will not fully understand the fundamental advantages and disadvantages of [...]
In April this year, we published an article regarding the ATO recommencing the issuing of Director Penalty Notices (view article here). During the pandemic, the ATO had offered administrative relief to businesses who were experiencing financial difficulty. However, that relief was always going to come to an end… As at 30 June 2021, the tax [...]
A common mode of entering into a new business with co-investors/partners is through the establishment of a new proprietary limited company in which each party holds shares equivalent to their proportional ownership. But what rules govern the interaction between the new business partners and what rights do they have in the operation of the company [...]
