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,…
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…
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…
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…
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…