Directors and owners of small corporate enterprises: managing legal risk

Paper


Byrne, Mark. 2003. "Directors and owners of small corporate enterprises: managing legal risk." 48th ICSB World Conference. Belfast, Ireland 15 - 18 Jun 2003 Washington, USA.
Paper/Presentation Title

Directors and owners of small corporate enterprises: managing legal risk

Presentation TypePaper
Authors
AuthorByrne, Mark
Journal or Proceedings TitleProceedings of the 48th ICSB World Conference
Number of Pages19
Year2003
Place of PublicationWashington, USA
Web Address (URL) of Paperhttp://www.icsb.org/2003_North_Ireland.asp
Conference/Event48th ICSB World Conference
Event Details
48th ICSB World Conference
Event Date
15 to end of 18 Jun 2003
Event Location
Belfast, Ireland
Abstract

[Abstract]: Entrepreneurs and developers of small business enterprises naturally reach a point in their business planning where the legal structure of their venture becomes crucial. For reasons of obtaining finance, property ownership (real or intellectual property) or attempting to limit personal liability, a company, is often chosen as the vehicle for the business. Initially, attention is naturally given to how the company is to be set up and procedural matters associated with the new enterprise. It is suggested however that a lot of faith is placed in the corporate structure and little thought is given to how the new directors/owners can protect themselves against personal risk.

Entrepreneurs will regularly undertake a risk assessment in analysing the potential success of any new idea. In the same way, directors or potential directors of any corporate enterprise should engage in some practical legal risk management. Internationally, the number and severity of corporate collapses have meant a renewed focus on issues of corporate governance. There should be a realisation that the duties, responsibilities and potential liabilities of corporate officers have grown. And not just for the larger corporations. Theory recognises that it is within the smaller closely held company that the incentives and opportunities for improper conduct are at their greatest.

The purpose of this paper is to identify for small business developers and owners the personal responsibilities and risks that come with the corporate structure. More importantly, the paper aims to provide practical advice on matters to consider at the time of creation of the company and how to monitor and manage the legal risk through the life of the company.

Keywordsdirectors; owners; companies; legal risks
ANZSRC Field of Research 2020480103. Corporations and associations law
Public Notes

File reproduced in accordance with the copyright policy of the publisher/author.

Byline AffiliationsSchool of Law
Permalink -

https://research.usq.edu.au/item/9yz49/directors-and-owners-of-small-corporate-enterprises-managing-legal-risk

Download files


Submitted Version
Byrne_ICSB2003.pdf
File access level: Anyone

  • 1955
    total views
  • 969
    total downloads
  • 2
    views this month
  • 1
    downloads this month

Export as

Related outputs

How do we assess the risk of personal liability for directors arising out of tortious acts?
Byrne, Mark. 2017. "How do we assess the risk of personal liability for directors arising out of tortious acts?" Australian Journal of Corporate Law. 32, pp. 351-367.
Directors' fear of derivative liability and occupational health and safety laws
Byrne, Mark. 2011. "Directors' fear of derivative liability and occupational health and safety laws." Company and Securities Law Journal. 29 (4), pp. 213-231.
The Queensland solicitors' conveyancing reservation: past and future development - part II
Byrne, Mark and Mortensen, Reid. 2010. "The Queensland solicitors' conveyancing reservation: past and future development - part II." University of Queensland Law Journal. 29 (2), pp. 245-261.
The Queensland solicitors' conveyancing reservation: past and future development - part I
Byrne, Mark and Mortensen, Reid. 2009. "The Queensland solicitors' conveyancing reservation: past and future development - part I." University of Queensland Law Journal. 28 (2), pp. 251-272.
Restitution and equity: a comparison of principle
Byrne, Mark. 2009. Restitution and equity: a comparison of principle. Saarbrucken, Germany. VDM Verlag Dr. Muller.
No liability companies
Byrne, Mark. 2005. "No liability companies." Halsbury's Laws of Australia. Chatswood, NSW, Australia. LexisNexis Butterworths.
Officers (Chapter 2)
Byrne, Mark. 2005. "Officers (Chapter 2)." Halsbury's Laws of Australia. Chatswood, NSW, Australia. LexisNexis Butterworths.
Foreign corporations (Chapter 7)
Byrne, Mark. 2005. "Foreign corporations (Chapter 7)." Halsbury's Laws of Australia. Chatswood, NSW, Australia. LexisNexis Butterworths.
Directors to hide from a sea of liabilities in a new safe harbour
Byrne, Mark. 2008. "Directors to hide from a sea of liabilities in a new safe harbour." Australian Journal of Corporate Law. 22 (3), pp. 255-274.
Do directors need better statutory protection when acting on the advice of others?
Byrne, Mark. 2008. "Do directors need better statutory protection when acting on the advice of others?" Australian Journal of Corporate Law. 21 (3), pp. 238-257.
The duties and liabilities of persons below board level
Byrne, Mark. 2006. "The duties and liabilities of persons below board level." Canberra Law Review. 9 (Special edition), pp. 45-64.