Business succession planning is essential for ensuring business continuity in the event of an owner’s retirement, illness, or death. It provides a framework for the transfer of ownership and management while minimizing disruptions and protecting the interests of all stakeholders. At Foye Legal, we help you create a robust succession plan. In these critical business planning matters, the right lawyer is everything for achieving the best outcome.
Business succession in New South Wales is influenced by several legal frameworks, including:
Succession Act 2006 (NSW): Governs estate disputes and provisions for contesting wills.
Corporations Act 2001 (Cth): Regulates company structures, shareholder rights, and obligations.
Common Law Principles: Apply to contracts, equity, and other business arrangements.
Understanding these laws is critical to ensuring a seamless transition during succession.
A comprehensive business succession plan ensures that the business continues to operate smoothly in unforeseen circumstances.
Key benefits include:
A business succession plan may involve several components, tailored to the specific needs of the business:
Buy/Sell Agreement
Partnership or Shareholders Agreement
Tax and Financial Planning
Estate Planning Alignment
Regular Review and Updates
If a business owner passes away, the executor of their estate may need to obtain a grant of probate from the Supreme Court of NSW. This should be done within six months of the date of death to ensure timely administration of the estate and prevent delays in business operations.
Don’t leave your business’s future to chance. Secure its legacy and ensure a smooth transition with a comprehensive succession plan. Our experienced legal team at Foye Legal is ready to guide you through every step. Schedule a consultation today to discuss your business’s specific needs.
Seeking legal assistance early gives you control over your situation, helping you avoid complications and manage costs effectively. This guide provides practical tips, checklists, and key insights to help you confidently navigate legal processes to secure the best possible outcome.
Your first consultation is vital in safeguarding your interests and laying the foundation for the best possible outcome. At Foye Legal, we value the trust you place in us and are committed to providing clarity, strategy and unwavering support from day one.
Business succession planning is the process of developing a strategy for the future ownership, management, and operation of a business when the current owner or key personnel retire, become incapacitated, or pass away. It’s crucial for ensuring business continuity, preserving value, and providing a smooth transition for stakeholders, including employees, customers, and family members. Without a plan, businesses can face significant disruption, financial loss, or even closure.
Several options exist, including:
Family Succession: Passing the business on to children or other family members. This often requires careful planning to ensure the successors have the necessary skills and the transition is fair to all family members.
Management Buyout (MBO): Selling the business to existing management or employees. This can ensure continuity and reward loyal staff.
Sale to a Third Party: Selling the business to an external buyer, which could be a competitor, a private equity firm, or another business.
Employee Ownership (e.g., Employee Share Scheme): Gradually transferring ownership to employees.
Liquidation or Wind-Up: Selling off the business assets and ceasing operations, usually considered when other succession options aren’t viable.
If you die without a valid will, your estate will be distributed according to intestacy laws, which may not reflect your wishes. This process can cause delays, disputes, and added stress for your loved ones. Creating a will ensures your assets are distributed as you intend.
Yes, it’s important to update your will whenever your circumstances change, such as getting married, divorced, having children, or acquiring significant assets. Regular reviews ensure your will remains accurate and legally enforceable.
The first step is to understand how your family home is owned. You may own it solely, as joint tenants or as tenants in common. If you own it as joint tenants, the home will automatically pass to your spouse on your death. If you want to leave it to your children, you should consider buying the home as tenants in common. Tenants in common each own a share of the house. If you die, you can leave your share to your children. If you own your home in your own name or as tenants in common, you could leave it to your children but give your spouse a life interest. A life interest can allow them to reside in the property until their death (or some other point), at which time your children can dispose of it as they wish.
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3/1 MEMORIAL DRIVE SHELLHARBOUR CITY NSW 2529
LEVEL 3, 63 MARKET STREET WOLLONGONG NSW 2500
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3/1 MEMORIAL DRIVE SHELLHARBOUR CITY NSW 2529
LEVEL 3, 63 MARKET STREET WOLLONGONG NSW 2500
contact us to make an appointment
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