Intellectual property. Even the words themselves sound kind of smart. Clever.
And true, intellectual property can be the magic. "IP" its called. The ideas and the concepts that you dreamed up, and that set your business apart from the rest. Thats what it is - the brand names and trade marks, the new inventions and systems you've developed, the different way of doing business. The product that nobody has seen before.
But IP is also your database, the one-off documents that you've drafted, your website, linkedIn and facebook pages, even the name your business goes by. All very smart indeed, and worth protecting because they're yours. Nobody elses. Yours. And they add value to your business.
So why is it that some otherwise very switched on people in business risk it all by not protecting their intellectual property?
Who is liable - company or director?
"We operate through a company so my personal assets are safe, right?" The answer is "it depends".
We're talking about a limited liability company. That is the common understanding. That the liability of the company is limited to the assets of the company. Which is why so many people think its a good idea to operate their business through a company, and why most large businesses operate through companies.
It all makes sense so far. I mean, why would you put all your assets at risk when you can operate through a separate legal entity, and then if something goes wrong it'll all be okay. They'd have to chase the company, not you.
The problem with all of this is that, yes, the liability of the company is limited to the assets of the company. But there are some fairly major asterixes to throw in at this stage. They come particularly under the guise of personal guarantees and director's duties.
We're talking about a limited liability company. That is the common understanding. That the liability of the company is limited to the assets of the company. Which is why so many people think its a good idea to operate their business through a company, and why most large businesses operate through companies.
It all makes sense so far. I mean, why would you put all your assets at risk when you can operate through a separate legal entity, and then if something goes wrong it'll all be okay. They'd have to chase the company, not you.
The problem with all of this is that, yes, the liability of the company is limited to the assets of the company. But there are some fairly major asterixes to throw in at this stage. They come particularly under the guise of personal guarantees and director's duties.
Do-It-Yourself Dispute Resolution - Good Luck!
There is something to be said for saving money. It always feels good, even if its only a few dollars here and there.
I guess that is the motivation for people trying to do things themselves instead of hiring a professional - that is, someone who does it all the time. I was guilty of that with the tiles on my verandah at home. I laid them and nearly broke my back in the process. I never wanted to look at another tile in my life by the time I finished. But I thought I did a pretty good job.
I guess that is the motivation for people trying to do things themselves instead of hiring a professional - that is, someone who does it all the time. I was guilty of that with the tiles on my verandah at home. I laid them and nearly broke my back in the process. I never wanted to look at another tile in my life by the time I finished. But I thought I did a pretty good job.
Trusts - massive change ahead
Nobody knows how many trusts there are in New Zealand. What I do know is this:
Almost every time I act for someone buying or selling a property or a business, the question comes up: "Should we use the trust for this?" Or, if they don't already have one: "Should we form a trust for this?"
Almost every time I act for someone buying or selling a property or a business, the question comes up: "Should we use the trust for this?" Or, if they don't already have one: "Should we form a trust for this?"
"Distressed Property" and the Mortgagee's Power of Sale
There have been a number of instances of borrowers suffering from what I call a “distressed property” in recent times as a result of the recession. The “distressed property” in many cases is not necessarily the family home. More often than not it is a property purchased as an investment, often immediately before the recession began.
Typically the market value of the property has eroded significantly since the date of purchase, sometimes to the point where the borrower's equity in the property is negative. However, for a variety of reasons, the borrower has not sold the property, or not been able to sell.
Typically the market value of the property has eroded significantly since the date of purchase, sometimes to the point where the borrower's equity in the property is negative. However, for a variety of reasons, the borrower has not sold the property, or not been able to sell.
Look After Your Brand
Many people hold the mistaken belief that by securing a company name they are adequately protecting their brand.
However, in the online environment we now operate in, if your trading name is important to your business it is more important than ever that you protect it properly. A company name, even if it is the same as your business name, will not achieve this because it does not stop someone else registering a website using that name. Nor does it necessarily prevent someone registering a trade mark using that name. Or establishing a blog, facebook page, or some other form of online presence for that matter.
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