Up to Date Documentation?
Jeremy Parsons, Director of Davenports Law, provides insight on 6 must ask questions.
1.
Do you run your business through a company?
A company is an excellent way to help protect you personally from claims relating to your business. It is the most common way to own a business and can be used in conjunction with another entity such as a family trust.
2.
If you have a company, is there more than one shareholder?
It is important that you have a shareholders’ agreement in place to govern the relationship between shareholders. It sets out things such as how shares are to be valued, dividends policy, the process for selling shares and how shareholder disputes are to be resolved.
3.
Do you have terms of trade that you provide to your customers?
Terms of Trade set out the conditions on which you provide goods or services to your customers. If you want to get paid, it’s a really good idea to have these in place.
4.
Do you have written contracts in place with your suppliers?
It is important that you have contracts in place with your key suppliers. These will set out the terms on which you purchase from your suppliers such as what they are supplying, for what time period, payment terms and the allocation of liability between you if something goes wrong.
5.
Does your business have employees?
It is important that all arrangements with employees are in writing. If your employment agreements have not been updated in the last 5 years, they should be reviewed to ensure they have kept up to date with developments in employment legislation.
6.
Does your business use unique names, logos or designs?
These are likely to form part of your intellectual property, and where possible, should be protected. It is also important to ensure that you own any intellectual property created by contractors for your business.
If you feel you could use some specialist advice, don’t hesitate to contact the Commercial Team.
