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Ask Deborah Awyzio Your Own Question
Deborah Awyzio
Deborah Awyzio, Solicitor
Category: Australia Law
Satisfied Customers: 863
Experience:  Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience
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Dear Expert, Negotiating an exclusive regional agreement

Customer Question

Dear Expert,Negotiating an exclusive regional agreement with a Digital Agency. This is being done via a Shareholder Agreement in a seperate company. Who will have exclusivity to a state in Australia.The other x2 Directors who will own 60% of our new company wish to place their 60% in the their company name. They advise l place my 40% in another company entity as well.What is the main purpose to create these seperate entities? Why would we not simply take a percentage directly in our names?My other related question is that our dividends are to be paid into a family trust. Do family trusts still offer the same advantages as they once did? I have heard some rules around family trusts have been tightened.X1 Director Owns 40% new entity under own company. New company dividends paid into family trust as several family members work in the business.X2 Directors own 60% new entity under their own company. New company dividends paid into their various family trusts.All these company entities have been hard to get my head around in regards ***** ***** purpose and protections.Thanks for any replies.
Submitted: 8 months ago.
Category: Australia Law
Expert:  Leon replied 8 months ago.

My name is ***** ***** I am a NSW Solicitor. I will do my best to assist you with your question.

Expert:  Leon replied 8 months ago.

Good Evening.

What exactly do you wish to know?

Customer: replied 8 months ago.
Discuss Monday as your looking into my Shareholder agreement already. I wanted to gain a greater understanding of what the other Directors are advising in structure. However they have stated l can simply put my own name if wish under the new entity. Their accountant and them do not recommend it due to liability issues if the venture failed.Thanks.
Expert:  Leon replied 8 months ago.

ok