Here at Castle, we pride ourselves on partnering with you to get it right and delivering excellent products that suit your needs. Unfortunately, not all corporate service providers are the same.
Over the past few years, many documents have come across our desk from a number of different providers. Many of these products have simply not been up to scratch and end up causing difficulties for clients at later stages.
Take for instance the following examples:
- One well known provider’s standard constitution provides for very prescriptive pre-emptive rights in relation to share transfers and allotments. This means that the clients are not able to easily issue or transfer their shares because certain processes first need to be followed. This adds to the paperwork needed to accomplish a simple share allotment or transfer, thereby increasing the costs for the client. And, if not followed, the allotment or transfer lacks legal effect.
- We encountered another provider’s constitution for a company limited by guarantee which made provision for shares. However, a company limited by guarantee cannot issue shares. This meant that parts of the constitution were unworkable due to provision being made for a type of structure that was not appropriate.
- In yet another constitution, members were only permitted to appoint other members as their proxies to represent them at general meetings. Unfortunately, all members were companies and it was impossible to hold a general meeting for the purpose of, for example, adopting a more appropriate constitution.
Most of the time, these errors would never be picked up by someone who isn’t closely familiar with constitutions, deeds and other legal documents. Yet, if they are not modified or corrected, these errors have the potential to pose a serious risk for your clients.
All Castle products have been thoroughly vetted by Castle Legal to ensure that they are legally correct and offer the most appropriate provisions for our clients.
If you have products supplied by other providers and would like them reviewed, updated or modified, we can assist. We have a number of cost-effective solutions for fixing difficult or erroneous documentation. Speak with Castle Legal today on 03 9899 9300 about reviewing your clients’ products.