Business & Commercial
Business Sales and Purchases
Gary Lees has been interested in small business for many years. As a business person he has seen many challenges to business in the local area.
Buying a business involves lots of commercial risk as seen by the number of businesses which fail. That is why it is important that an experienced commercial lawyer deal with the purchase.
Some of the issues are:
- Is the apportionment between the goodwill, plant and equipment appropriate?
- There can be depreciation benefits and other taxation issues to consider.
- Is GST correctly dealt with?
- Are the rules complied with to obtain the “going concern” status?
Many businesses overlook the need for a partnership agreement. Many problems that arise could have been avoided if the parties had provided a painless method of dealing with disputes.
A partnership Agreement is also particularly important for taxation reasons where a husband and wife are operating a business “in partnership”.
Partnership Agreements typically deal with the following matters:
- How decisions are made by the partners
- The duties of the partners
- How drawings are to be taken
- Providing annual accounts
- Restrictions on activities of partners
- What happens on a retirement of a partner
- Restrictions on activities of outgoing partners
- A method of dispute resolution
- Winding up of the partnership
If a business is incorporated the parties can often not realise the importance of having an agreement between them setting out what, for example, is to happen if one party wants out of the business operated by the company.
Commercial and Retail Leases
It is important to protect your professional interests whether you are a business owner leasing a premises or a building owner who requires a lease for you premises.
Some important considerations may be:
- Term of the lease in regards to your business or premises
- Rent review method stipulated in the lease
- Proportion of outgoings paid by either the landlord or the tenant
- Any special conditions relevant to that particular premises
- Any requirements under the Retail Leases Act