Free Law Tips >> Business Risks .

DO have all personal assets held by an entity not exposed to business risks.

DON’T have business assets, eg trademarks, plant & equipment & real estate held in the operating entity.

DO have these assets held in a separate entity(ies) and grant a licence to your operating entity to use them.

DON’T provide guarantees for other parties without first obtaining independent legal advice.

DO ensure that your Directors & Shareholders loans to the business are secured by a debenture charge over the business, thus becoming secured creditors.

DON’T under-insure, consider ALL risks, and ensure you have adequate insurance to cover these risks.

DO ensure you are aware of all of your obligations under business agreements, and if in doubt seek immediate advice from your Lawyer and/or accountant.

DON’T allow the bank to take security over your personal assets.  Ensure they only take it over your business assets.

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