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Preparing your business for post-pandemic recovery

After a challenging and unprecedented few weeks, we are at last seeing the green shoots of a return to “normal” life, both home and abroad.

We do all accept though that what “normal” looks like in the post-Covid world will look quite different to how it did back in late February / early March.

How well businesses adapt and embrace new opportunities as the world recovers will sort out those that will thrive, and those that may struggle.

At Lodders, we are seeing many clients using this time to improve things relating to their businesses that they never had time for before, and to prepare as best they can for the challenges ahead.  Examples include:

  1. Considering and rationalising corporate structures – is your corporate structure the way you would map it out if you were starting with a blank piece of paper, or is it the result of a history of previous adaption and change, which is now no longer the best structure for your business?
  2. Formalising shareholder agreements and updating Articles of Association or governing rules – we see many owners of businesses fail to consider formalising the arrangements between shareholders or adopt appropriate rules, often because of the enthusiasm of getting started in business and good personal relationships with their co-owners.  But formalising a shareholders agreement and/or adopting appropriate rules help clarify things for the future, when things may change – for example: What if I want to leave?  How can I sell my shares? Can I stop my partner from competing if he leaves?  What do I want a veto right over? We would also recommend upgrading provisions in your articles to cover electronic communications and virtual meetings.
  3. Employee incentives – is now the time, with depressed company values that are largely being accepted by HMRC, to put in place an employee incentive plan or option scheme for your key staff, to keep them tied to your business and motivated to build it back up again?
  4. Commercial contracts – take the time to update and upgrade your standard or any specific contracts with key suppliers or customers.  Do you want your contracts to be clearer as to what happens should there be economic or ‘Act of God’ type challenges to businesses in the future?
  5. Terms and conditions – do these need to be reviewed (or created if you don’t already have them!) to focus on provisions such as force majeure and limitation of liability?

If you would like to discuss any of these or any other issues you are facing as the world starts to recover, please do give one of us a call for a no obligation chat.

Kim Klahn

E: kim.klahn@lodders.co.uk

 

 

 

 

 

Graham Spalding

E: graham.spalding@lodders.co.uk

Mark Lewis

E: mark.lewis@lodders.co.uk

Mark Lewis commercial contracts specialist at Lodders Solicitors

 

 

 

 

 

Kim, Graham and Mark are partners in Lodders’ Corporate and Commercial team, providing expert and pragmatic advice on a range of business issues.  Clients range from long-established owner-managed businesses, family businesses, and SMEs, through to charities and not for profit organisations.

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