Legal Question in Business Law in Australia

Business mis-management

I have got an oral agreement with the owner of a business I have worked with for 3 years. Our agreement is when the business is sold for approx $200K-$300K I recieve a $15k bonus. Due to financial incompetence by the owner the business has suffered and it's highly unlikley it would be sold. It is more than likely going to fail. our agreement also meant we both looked after specific areas of the business. The owners specific area has not been well managed where mine has been.

What can I do here?...if he is to continue too much longer the business may have to close and Im not in a financial position to buy it, and I wouldn't anyway as it's been me who has platformed it in the market as per our agreement. He has also not paid staff superannuation for the past 12 months (3 staff plus me).

any ideas??

Regards

Shane


Asked on 6/07/04, 11:28 pm

1 Answer from Attorneys
Suzana Giorgio Pragma Legal, Lawyers

Re: Business mis-management

I don�t have enough details of the agreement between you and the owner of the business to answer your question properly but, from your message, it seems that the payment of the bonus was conditional upon the business being sold, and that there was no set time when the business will be sold. If that is the case, it means that you only get your bonus when (and if) the business is sold.

As per your message, due to financial incompetence, the owner almost run the business into the ground. Whether you can do anything about it will depend on whether you have any proprietary rights ((or other interests) in relation to the business, e.g. if you are a partner in the business, as opposed to being simply an employee.

I suggest you see a solicitor in order to, based on the full facts, determine whether you have any rights or interests in relation to the business.

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Answered on 6/08/04, 9:06 pm


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