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Small business to benefit from trading trust remedies

This week brought another example of how Liberal-Nationals governments get on with practical law reform.

Each year, thousands of Victorians put their life savings on the line to start small businesses, often in partnership with friends or family.

Unfortunately, some of those ventures go bad, and people end up being ripped off by their former business partners.  When their business is a company, there are rules under corporations law to protect all shareholders.  However, when their business is in a trading trust, the law is unclear and many victims can’t get a remedy.

The Napthine government asked the Victorian Law Reform Commission to investigate, and this week their report was released.  It recommends changes to the law to give Victorians whose small businesses are in trading trusts the same rights as those whose business is in a company.

The Andrews government now needs to take this report on board and ensure these small business owners have proper protection for when things go wrong.

To find out more, see the VLRC’s report at http://bit.ly/1H4JnrL.