For Business news
Selling your business, whatever the size, can be a stressful and drawn out process. However, with the correct advice and guidance from a commercial lawyer, the process of selling your business can be made easier. No business sale is ever the same therefore the following information is purely a guide. Outlined below are a few pointers to think about when going through the notions of selling your business.
Business partnerships are regulated under a little known law from 1890 – The Partnership Act. Under the Act a ‘partnership’ is formed when two or more people join together in business to share a profit. This does not include LLPs (Limited Liability Partnerships) or Limited Partnerships. This can be established by an oral contract or simply by conduct. It is possible, therefore, to enter into a partnership as defined by this act without meaning to. These inadvertent partnerships are referred to as ‘Partnerships at Will’ and are governed by the Partnership Act 1890.
There is no law that states that a shareholders’ agreement must be put in place when a business is first formed but there are many reasons why it is advantageous. Nobody can predict whether a business relationship will remain harmonious, everybody hopes it will and, in most instances, they do, but what happens when circumstances do change? At Lawson-West a few of our clients have experienced this, it is never simple to solve, and we want to educate individuals and help to mitigate this risk.