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Lawbase An online law firm for business owners and entrepreneurs. We provide timely, practical and affordable commercial law services so you can get on with business.

Many consultants assume an indemnity clause will protect them if something goes wrong. But contractual protection and in...
24/06/2026

Many consultants assume an indemnity clause will protect them if something goes wrong. But contractual protection and insurance don’t necessarily do the same job.

An indemnity clause can provide a contractual right to recover certain losses. However, its practical value may depend on factors such as whether the other party can meet their obligations, whether the clause applies to the circumstances, and how the provision is drafted.

Insurance can serve a different function.

Depending on the policy and its coverage, it may help respond to legal costs, third-party claims and liabilities that may sit outside the scope of contractual protections.

Risk management is rarely about relying on a single document or clause.

For consultants, a stronger approach often involves ensuring agreements are properly drafted while also considering whether the insurance arrangements in place align with the services being provided.

Want to learn more about why indemnity clauses and insurance can work together as part of a broader risk management strategy? Read our article in the comments.

Many businesses are still relying on employment contracts created when the business was much smaller – before larger tea...
18/06/2026

Many businesses are still relying on employment contracts created when the business was much smaller – before larger teams, stronger client relationships and greater operational complexity.

That often works… until expectations become unclear.

Questions start to emerge around responsibilities, confidential information, ownership of work, performance issues or what happens when an employee leaves.

The issue is rarely bad intent.

More often, it’s uncertainty around terms that were never properly documented in the first place.

Strong employment contracts help create clearer expectations, stronger accountability and better protection as your business evolves.

That’s why we recently launched our fixed-fee Employment Contracts Package for SMEs hiring or growing teams.

The package includes:

• Permanent employment contract (FT/PT)
• Casual employment contract
• Core protections including confidentiality and IP ownership provisions
• Plain-English drafting
• One revision round
• Email and phone support

Fixed fee: $1,200 + GST

Depending on your business structure and team arrangements, reviewing employment documents early can help reduce issues before they become more difficult to manage later.

Sole trader or company? Many founders make the decision based on what seems quickest or easiest at the time.But the stru...
15/06/2026

Sole trader or company? Many founders make the decision based on what seems quickest or easiest at the time.

But the structure you choose can have implications well beyond setup costs.

Things like personal liability, future growth plans, tax considerations, bringing in investors and day-to-day administration can all be affected by how the business is structured.

For example, sole trader structures can be relatively simple and inexpensive to establish, while companies can provide additional flexibility and a level of separation between personal and business liabilities.

There isn’t a one-size-fits-all answer.

The right structure will often depend on factors such as the nature of the business, the level of risk involved and where the business is expected to go over time.

Founders can also change structures as their business evolves, but restructuring later may involve additional legal, tax and administrative considerations.

Read our article to learn more about what SME founders should consider when choosing a business structure. Link in comments.

Most founder disputes start as unspoken expectations.Very few businesses begin with founders expecting conflict. In the ...
12/06/2026

Most founder disputes start as unspoken expectations.

Very few businesses begin with founders expecting conflict. In the early stages, decisions often happen quickly, roles evolve naturally, and everyone is focused on building momentum.

But growth changes things.

Contributions can shift. Priorities evolve. Financial pressure increases. One founder may want to exit while another wants to continue growing the business.

The issue is rarely one major disagreement.

More often, it’s years of assumptions that were never properly documented.

A well-drafted shareholder agreement helps create clarity around ownership, decision-making, exits and dispute processes before uncertainty becomes expensive.

That’s why we recently launched our fixed-fee Shareholders Agreement Package for founder-led SMEs with 1–5 shareholders.

The package includes:

• Custom shareholder agreement
• Subscription letter
• Core protections around ownership, transfers and exits
• Plain-English drafting
• One revision round
• Email and phone support

Fixed fee: $3,500 + GST

If your business has evolved significantly since day one, it may be worth reviewing whether your legal arrangements have evolved with it.

Drag-along and tag-along rights can sound like technical legal terms. But they’re essential when shareholders want very ...
10/06/2026

Drag-along and tag-along rights can sound like technical legal terms. But they’re essential when shareholders want very different things.

One shareholder wants to sell. Another wants to stay. A buyer wants the entire company rather than a partial stake. Suddenly, decisions that seemed straightforward can become more complicated.

These provisions are commonly included in shareholder agreements to help manage those situations.

• Drag-along rights
Can allow majority shareholders to require minority shareholders to participate in a sale of the company

• Tag-along rights
Can help protect minority shareholders by allowing them to participate in a sale on the same terms as larger shareholders.

The purpose is generally not to create an imbalance between shareholders. When drafted appropriately, these provisions can help create clearer expectations and reduce uncertainty if ownership changes in the future.

Planning for scenarios that may seem unlikely at the beginning can sometimes prevent significant friction later.

Read our article to learn more about these rights in shareholder agreements. Link in comments.

The business has grown. The legal foundations often haven’t.Most businesses don’t become risky overnight. More often, th...
04/06/2026

The business has grown. The legal foundations often haven’t.

Most businesses don’t become risky overnight. More often, they slowly outgrow the informal arrangements that worked when everything was smaller, simpler and moving quickly.

X Founder conversations that were never documented.
X Employment arrangements created years ago.
X Website terms copied from somewhere and never reviewed again.

These aren’t unusual problems. They’re often signs that a business has grown successfully.

To help businesses address some of the most common gaps we see, we’ve recently introduced 3 essential legal packages designed for growing businesses. Swipe through to see some of the issues growth can quietly expose.

Employee or contractor? The answer isn’t always as straightforward as people think.Many businesses assume someone is aut...
01/06/2026

Employee or contractor? The answer isn’t always as straightforward as people think.

Many businesses assume someone is automatically a contractor because they have an ABN, specialist skills, or only work with the business occasionally.

But labels alone don’t determine the relationship.

Courts and regulators will generally look at the full working arrangement – including factors such as who controls the work, who bears the risk, how payment works, and whether there is an ongoing expectation of work.

Getting the distinction wrong can create more than administrative issues. Depending on the circumstances, it may affect obligations relating to tax, superannuation, leave entitlements and workplace laws.

Good business processes can help reduce uncertainty.

Clear agreements that accurately reflect how the relationship operates in practice, supported by proper documentation and record-keeping, can help businesses manage risk more effectively.

Read our article to learn more about the factors businesses should consider when determining whether a worker is an employee or an independent contractor. Link in comments.

Your expert witness can make or break your case.In litigation, expert evidence is often central to the outcome. But not ...
27/05/2026

Your expert witness can make or break your case.

In litigation, expert evidence is often central to the outcome. But not all “experts” carry the same weight – and courts are quick to disregard evidence that lacks independence or proper expertise.

An expert’s duty is to assist the court, not advocate for the party who engaged them. When that line is crossed, their evidence can lose credibility entirely.

In one case, a tribunal rejected an expert’s report where it was found to be biased, poorly prepared and outside the expert’s true area of expertise. The result? Their evidence was given little to no weight.

The practical takeaway is straightforward. Choosing an expert isn’t just about qualifications – it’s about objectivity, relevance of experience and the quality of their analysis.

If expert evidence is part of your dispute, selecting the right expert early can significantly influence both strategy and outcome.

Signing a lease isn’t always the first step.In many commercial property deals, parties enter into an Agreement to Lease ...
20/05/2026

Signing a lease isn’t always the first step.

In many commercial property deals, parties enter into an Agreement to Lease before the formal lease begins. This usually happens where key steps still need to be completed – like construction works, fit outs or obtaining approvals.

An Agreement to Lease sets out what needs to happen before the tenant can take possession, and creates a binding commitment for both parties to proceed once those conditions are met.

For landlords, it provides certainty before investing time and money into preparing the premises. For tenants, it helps ensure the space will be ready and suitable before rent starts.

But the detail matters. Timeframes, responsibility for works, required consents and “sunset dates” can all significantly affect how the arrangement plays out in practice.

If these issues aren’t clearly addressed upfront, delays and disputes can follow.

Before signing, it’s worth making sure the agreement reflects the commercial reality of the deal – not just the intended end result.

Been served with a statement of claim? What you do next matters.A statement of claim is the start of formal legal procee...
18/05/2026

Been served with a statement of claim? What you do next matters.

A statement of claim is the start of formal legal proceedings. If you ignore it or respond incorrectly, the consequences can escalate quickly – including default judgment against your business.

Before reacting, take a step back and check your records. Does the claim match what you understand about the situation? Errors do happen, and it’s important to verify the details early.

From there, your options will depend on your position. You might request more information, pay the amount claimed, negotiate a repayment arrangement, or file a defence if you dispute the claim. Each path carries different risks and procedural steps.

Timing is critical. In most cases, you’ll have 28 days to respond. Missing that window can significantly limit your options.

The key is to act early and with clarity. A considered response can help you resolve the issue efficiently and avoid unnecessary escalation.

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