Archives for September 2016

What is a Share Subscription Agreement?

A share subscription agreement (Share Subscription Agreement) is a promise by a potential shareholder, also known as a subscriber, to make payment of funds to a company (Company) in an agreed number of “tranches”, in return for the Company issuing and allotting a certain number of shares at a certain price, such that the subscriber becomes a shareholder (Shareholder).  A Share Subscription Agreement must include the number of shares that will be issued to the Shareholder, and the order and timing by which funds will be advanced.  Sometimes it seems that a Share Subscription Agreement merely sets out the provisions of a term sheet (Term Sheet) in a fuller and more precise manner.  [Read more…]

Government grants resource list

Below is a non-exhaustive list of resources for a variety of Commonwealth and Queensland government grants. [Read more…]

Renewing or extending a Franchise – what’s the difference?

A review of the Franchising Code of Conduct  (Code) in regarding the end of term arrangements that apply to ‘renewing’ and ‘extending’ can be somewhat confusing. There are two options for continuing the franchise relationship at the end of the initial term, namely:

  • to renew (Renewed); or
  • to extend (Extended);

the Franchise Agreement. [Read more…]

Marketing funds for franchises

Changes to the Franchising Code of Conduct (Code) which took effect on 1 January 2015 altered the obligations for Franchisor’s who operate marketing funds.  Following the changes, Franchisors must, in addition to including details of the fund in the Franchise Agreement:

  • include the details of the marketing fund in the disclosure document;
  • prepare and maintain financial statements concerning the marketing fund;
  • keep all funds received towards the marketing fund in a separate account;
  • make their own contributions towards the marketing fund; and
  • use the marketing fund exclusively for marketing.

[Read more…]

Loan agreements – an overview

A loan agreement (Loan Agreement) is a formal document under which one party (Lender) advances funds to another (Borrower), subject to the Borrower’s obligation to repay that money.  In any situation involving a loan, even between friendly or related parties, it is considered best to enter into a formal Loan Agreement to protect both the Lender’s and Borrower’s interests.

Loan Agreements range from the relatively straightforward to the exceedingly complex. [Read more…]

What is a Teaming Agreement?

A teaming agreement (Teaming Agreement) is a contract between two or more parties (Team Members) that is used to regulate the rights and obligations where one of them pursues a tender or contract with a with a third party (Prime Contract).  Once the Prime Contract is entered into between the third party and Team Member # 1, a sub-contract is executed between Team Member # 1 and the other Team Member(s) to enable Team Member # 1 to discharge its obligations under the Prime Contract.  [Read more…]

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