The Commercial Law Department was instructed by three individuals who had happily carried on business together, but had decided to separate them. On investigation the business involved partnerships, a limited company & a subsidiary company, all intertwined, running three businesses together at three premises. To add to the complications parts of the premises were owned by the company, parts were leased by the company and other parts owned by some of the proprietors.

To create three separate businesses which could operate independently agreement was reached which involved de-merging the company, transferring its business to three new companies, each of which was owned by one of the proprietors and winding up the original company, and a fair distribution & transfer of the premises between them.

John Clare, Head of the Department, says, "This was like unscrambling an egg. To learn about the existing structure I had meetings with the clients & accountants. That enabled us to discuss & implement a new structure. This was a case of teamwork with patience & attention to detail to reach a fair outcome which was agreed by everyone. It is not uncommon for businesses to develop & become complicated. Although we were able to implement an agreement in this case early advice & regular reviews can avoid potential problems".

Contact

• John Clare
  Frome Office