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Trading account guarantees are like zombies

Most businesses trade with the benefit of a corporate structure. The key benefit is that a company is a separate entity and the liability of the shareholders is limited to their capital contribution (typically a nominal amount). That is, if the underlying business fails then the debts remain those of the company, not the directors or shareholders (exceptions for failure to pay super, PAYG, etc).

In theory, that sounds almost too good to be true! The reality is a little different.

An off the cliff risk of 3PL

An off the cliff risk of 3PL Risk of trading on Credit Any trader who supplies product on credit and has been in business for a decent length of time will know the pain of a customer going bankrupt and the consequent inability to be paid for products delivered (and...

Copyright – ownership of key designs

Copyright – ownership of key designs Many businesses will have key copyright works that are central to their operations. Perhaps the most central is a logo that identifies their brand or is otherwise a key part of their business.  Think the Nike swoosh logo or the...

Fabric Designs and Copyright

Copyright in fabrics A recent Federal Court case examined the breach of copyright in fabric designs (in the case, the design being applied to quilt covers and pillow cases).  The Dempsey Group Pty Ltd (“Dempsey”), originally designed three unique fabric patterns, and...