Do

  • have all personal assets held by an entity not exposed to business risks.
  • have these assets held in a separate entity(ies) and grant a licence to your operating entity to use them.
  • ensure that your Directors & Shareholders loans to the business are secured by a PPSR registration charge over the business, thus becoming secured creditors.
  • 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

Do Not

  • have business assets, eg trademarks, plant & equipment & real estate held in the operating entity.
  • provide guarantees for other parties without first obtaining independent legal advice.
  • under-insure, consider ALL risks, and ensure you have adequate insurance to cover these risks.
  • allow the bank to take security over your personal assets. Ensure they only take it over your business assets.

Please note:

You should not act only on the basis of material contained in these law tips because the contents are of a general nature only and may be liable to misinterpretation in particular circumstances. Do not act on any of the contents of this leaflet without first obtaining specific advice from your own solicitor or Eales & Mackenzie.