Top tips in business for 2023 – Your legal guide

• Posted onJanuary 16, 2023

WSP Solicitors Company Commercial Department has provided a breakdown of some key areas your business may benefit from reviewing in order to have a successful and protected 2023.

Commercial Agreements

It is commercially prudent to have a clear set of terms upon which you are prepared to do business with your customers A set of terms and conditions, or “T&C’s” as they are sometimes called, serve to create certainty and clarity as to each party’s obligations and responsibilities, providing businesses with protection. 

In addition, businesses should periodically review their existing contracts both with suppliers and customers. WSP solicitors can assist with this to ensure contract terms are still up to date and applicable. In addition, you may want to look at whether or not a contract can be terminated or re-negotiated, are there operative force majeure clauses or will the doctrine of frustration apply?

Shareholders Agreements

It is an unfortunate fact that for some shareholders of private companies, tough economic times will lead to disputes and disagreements.

So, if you’re a shareholder of a limited company how can you try to protect yourself and the company? Generally, the best way for shareholders to control and protect their interests in a limited company is by having a shareholders’ agreement in place. Such an agreement can be entirely bespoke to fit the needs of the shareholders collectively and as individuals. Shareholders’ agreements can include provisions that specifically set out how disputes between shareholders should be resolved and succession arrangements in the event of death or if a shareholder leaves. If you would like to discuss shareholder’s agreement, don’t hesitate to get in touch with our corporate commercial department on {link}.

Partnership agreements

Without a solid set of rules to regulate your business relationship with your partners, your business may be vulnerable. For example, what if a partner wants to leave the partnership, a partner dies, or some partners want to get rid of a rogue partner? In the absence of a written partnership agreement, The Partnership Act 1890 (“the Act”) determines the rules that govern a partnership.

Under the Act, profits are shared equally, regardless of the skill, effort or capital each partner contributes, and all partners have an equal say in any decisions affecting the partnership. The Act also provides that any one partner can dissolve the partnership by merely giving the other(s) notice. Similarly, if one partner dies the partnership is automatically dissolved. Such events may result in severe consequences for the business, especially if the remaining partner(s) wish to continue running the business. Partnership agreements therefore lie shareholder agreements are an essential part of business and a practical means of ensuring the business has strong foundations upon which to transact and deal with the comprehensive variety of fundamental issues that may arise from time to time. Agreeing on how to regulate these matters is vital.

 

For expert advice, get in touch with your branch today. Alternatively, you can use the enquiry form here or call us on 0n 01453 847 200