Question from Jenny, What Legal Documents Do I Need to Protect Myself When Closing a Business in New Zealand?
Answer from AI:
When closing a business in New Zealand, it’s important to ensure that all legal obligations are met and that you protect yourself from potential future disputes. This is particularly relevant if you plan to start a new business in the same industry.
1. Dissolution Agreement
A Dissolution Agreement is a document that outlines the terms and conditions of the business closure. It typically includes details about the distribution of assets, settlement of liabilities, and other relevant matters. This agreement can help protect you from future claims by your co-founder or other parties.
2. Release of Liability
A Release of Liability is a document that releases a party from any future claims or lawsuits. You might consider having your co-founder sign a Release of Liability to prevent any future disputes or claims.
3. Non-Compete Agreement
Although your shareholders agreement has a restraint of trade clause, it might be beneficial to have a separate Non-Compete Agreement if the business is closing. This can prevent your co-founder from starting a similar business in the same industry for a certain period.
4. Intellectual Property Agreement
If your business has intellectual property, such as code or an unpublished website, an Intellectual Property Agreement can specify who retains the rights to these assets after the business closes.
5. Legal Advice
It’s highly recommended to consult with a legal professional when closing a business. They can provide personalized advice and ensure that all legal obligations are met. The New Zealand Law Society provides a list of lawyers who specialize in business law.
6. Official Notifications
You’ll also need to notify the New Zealand Companies Office and other relevant government agencies about the closure of your business.
Remember, these are general guidelines and may not cover all the specifics of your situation. Always consult with a legal professional for personalized advice.