Every owner of a small to medium sized business (SME) can benefit greatly, both on a personal and professional level, by appointing an Advisory Board, as Kim Mei-Li Dennis, the chair of SME Boardroom explains.
Strategies to improve your productivity, sales & profitability as well as minimise legal and commercial risks in your business include:
Introduce template agreements in order to streamline your processes, improve communication & minimise mistakes
Protect your intellectual property in order to increase the value of your business & protect your reputation in the market
Ensure your business structure is set up properly to protect you legally, minimise tax and to allow for growth
Consider incentives, equity and other programs to retain your valuable staff and motivate performance
Ensure your advertising & marketing programs are designed to maximise sales with minimum legal risk
See our legal checklist for more ideas to take your business to the next level!
If you need assistance with any of the legal strategies above, please let us know.
Current as at December 2010.
Are you looking for ways to reduce your company's ASIC compliance burden and red tape? Great news! The Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 came into force on 28 June 2007.
As a result of some of the changes, your company:
- may now pay its annual review fees in a lump sum for an extended period;
- may choose whether to mail out its annual report, or post it on its website;
- may not need to lodge a financial report with ASIC if two of the following three tests apply:
1. Its consolidated revenue for the financial year is $25 million or more (previously $10 million);
2. The value of its consolidated gross assets for the financial year is $12.5 million or more (previously $5 million); or
3. It has 50 or more employees.
- no longer has to notify ASIC of retirement or resignation of officeholders if the officeholder has informed ASIC themselves;
- may specify a contact address for ASIC which is different from its registered office;
- may register changes electronically with ASIC
Please contact us for assistance with your company's legal needs.
Current as at 2007.
The Corporations and Markets Advisory Committee (CAMAC) has released a Corporate Duties Below Board level report which recommends that many of the obligations an dprohibtions currently imposed on corporate directors and secretaries by the Cororations Act should be extended to apply to other involved middle management staff.
When organic growth just isn’t fast enough, an alternative business expansion method is to purchase an existing business. This can quickly complement your existing business with new staff, new products and new clients.
The issues relating to personal liability of a director of a trustee company are still unclear since the SA Supreme Court decision in Hanel v O'Neill. The impact of the decision is that directors of corporate trustees are effectively guarantors for any liability entered into by the trustee. As such, directors of corporate trustees are now exposed to a greater potential for personal liability than other company directors.
A partnership is a relationship between persons carrying on business in common with a view to profit. It is a continuing business between persons in a fiduciary relationship. A joint venture involves a single project that is limited in duration rather than a continuing business. Venture participants are cooperating as separate entities rather than taking part in common business. Partnerships can be risky as in most cases partners are open to unlimited liability for all financial obligations of the business, even if the debts are incurred by the other partner without knowledge or consent. It is important to have a written partnership agreement which covers:
The Australian Institute of Company Directors and the Office of the Federal Privacy Commissioner have recently released a guide entitled, ‘Privacy & Boards: What You Don’t Know Can Hurt You’. It points out that directors have a duty of care and may be held accountable for a company’s failure to comply with privacy principles.
If you are a director, partner or sole trader, the appointment of a Power of Attorney should be a routine part of your business planning. There should always be someone authorised to manage the business and its affairs if you are suddenly unable to do so.