Business Issues

2 April 2020

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Issues For Business In Difficult Times

A list of issues to think about. Not necessarily apt for all situations, but a base to work from.

If you run a business confronting hard issues and, after reading this, have any questions, please feel free to contact us.

What is changed in my business? Does the business lease premises or Goods?
  • Compulsory closure?
  • Social distancing issues?
  • Logistics and supply line issues?
  • Check the lease terms
  • Look for provisions about “force majeure”, “frustration” and unforeseen circumstances
  • impact of Retail Tenancies legislation.
Do I have business insurance Business Financing
  • Does it include business continuity?
  • If so, what is the wording? What is required to trigger recoverability?
  • Check with your insurance broker
  • Is your bank or financier being proactive with assistance?
  • Check government assistance packages
  • Check with bank or financier as to flexibility
  • Check with your accountant
Impact on Existing Contracts Impact• What new terms are needed? on New Contracts?
  • Check the terms
  • Look for provisions about “force majeure” , “frustration” and unforeseen circumstances
  • Check with the other party as to flexibility
  • What new terms are needed?
Government Assistance packages Employees and Contractors
  • Check availability and applicability
  • Likely to be a change a number of times over time
  • Check terms of employment and relevant awards/enterprise bargains/?
  • WH&S issues
  • Check terms for contractors
Legal Options to deal with Closedown Sole Trader Issues
  • “Safe harbour” provisions under Corporations Act
  • Slight modification of directors duties
  • Can business continue with me away?
  • Do I need to and can I appoint co-manager or alternative manager
Legal, Tax and Accounting Advice
  • Check ATO websites for relief provisions
  • Check with your accountant

If you have any query, please feel free to call your Eakin McCaffery Cox contact to discuss.

The above was prepared for and is intended to provide a broad general overview of issues. It is not intended, and must not be relied upon, as definitive legal advice.

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