Deadlocked Companies When advising small businesses one of the most common problems I encounter is the deadlocked company. This is usually where 2 people (often friends, or husband and wife) form a company where they are equal shareholders and each of them is a director. When things are going well this is not an issue,…
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No Partnership Agreement Similar to the deadlocked company are those businesses where two (or more) people have gone into partnership but have neglected to conclude a partnership agreement beforehand. There is nothing wrong with this per se, as partnerships do not need to have a written agreement in order to operate, BUT, if things go…
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Misunderstanding The Nature of a “Company” Another frequently encountered set of issues and problems are those which arise from small business owners not understanding the special legal nature of a limited company or their role within it. All too often people get their accountant to set up a company for them and start trading without…
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Not Concluding Contracts In their (understandable) eagerness to get on with the business of making money many people go into deals with their customers or suppliers without properly concluding a contract where all the necessary terms of the deal are clear. This can range from “battle of the forms” type situations where both parties have…
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Not Taking Legal Advice Until AFTER Things Go Wrong Lawyers are like dentists in many ways – not because we tell you sit down and open wide and then cause you huge amounts of pain before charging you for the pleasure – but because regular check ups and taking advice can prevent much worse problems…
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