Business Succession Planning Lawyers Penrith Area

A Buy/Sell agreement is an agreement between the proprietors of a business that deals with how the ownership entitlements of the proprietors will be dealt with in events such as:

• a proprietor dies
• a proprietor is made bankrupt
• a proprietor is totally and permanently disabled
• a proprietor wishes to retire
• a proprietor continually defaults in his/her obligations to the business
• a third party offers to buy the business but not all proprietors wish to accept the offer

If, for example, your business structure is a company or a trust, you do not own the business itself but rather you own shares in the company that owns the business or have a beneficial entitlement in the trust that owns the business. A Buy/Sell agreement usually deals with your rights to deal with your interest in that entity. It may be difficult to locate a third party to purchase your shares or interest from you. A Buy/Sell agreement can for example, grant options to a proprietor to purchase other proprietors’ interests or for the business to be sold or the entity owning the business to be terminated.

For most businesses the only business insurance you are required by law to carry is workers compensation insurance. However you would be foolish to neglect to cover other business risks.

The types of other business risks and insurances include:

• public liability;
• fire;
• product liability;
• business interruption/loss of profits;
• sickness and accident/personal disability;
• key person insurance;
• professional indemnity.