Sole Trader Transfer

Drumpot

Hi,

If you have a sole trader who has agencys with certain companies that pay remuneration for certain services. He has an employee who invested in the company with a "gentlemens agreement" that the employee takes over the ownership of the company at some stage (assume this is an airtight agreement and that the employer is not going to "screw" the employee).

If the employer dies at any stage before transfer of ownership, is the employee entitled to claim rights on the agencys that the original employer has with those companies (eg if employer had it in their will that company passes to employee).

Or, as a Sole Trader is the actual company, once they die does the agency/business they have with the companies they deal with pass over to their estate (so in essence a will would cover this problem).

antoinolachtnai

It really depends on the agreements with the companies. Is there an agency agreement of some sort? It is potentially very complicated. In practice, I think it will be difficult to hold them to dealing with the new person, if they really don't want to. At the end of the day, it will all depend on the relationships that are in place.

stepbar

Drumpot wrote: »

Hi,

If you have a sole trader who has agencys with certain companies that pay remuneration for certain services. He has an employee who invested in the company with a "gentlemens agreement" that the employee takes over the ownership of the company at some stage (assume this is an airtight agreement and that the employer is not going to "screw" the employee).

If the employer dies at any stage before transfer of ownership, is the employee entitled to claim rights on the agencys that the original employer has with those companies (eg if employer had it in their will that company passes to employee).

Or, as a Sole Trader is the actual company, once they die does the agency/business they have with the companies they deal with pass over to their estate (so in essence a will would cover this problem).

What business are you in? Because that is important to know.

Drumpot

stepbar wrote: »

What business are you in? Because that is important to know.

Life , Pensions, Investments intermediary .

stepbar

Drumpot wrote: »

Life , Pensions, Investments intermediary .

I thought so by the way you were talking. Unless you have a licence to trade from the Financial Regulator then you won't be able to take over his business. I suspect you have the QFA however which allows you to advise on financial products. There's a big difference in terms of regulation. My suggestion would be to talk to your boss. If you want to take over his business you may have to change into a partnership / ltd co and apply for a licence that way. Of course he's going to have to be agreeable to that. A gentleman's agreement has no standing in law and as such is what it is - a verbal agreement with no standing in law.

Drumpot

stepbar wrote: »

I thought so by the way you were talking. Unless you have a licence to trade from the Financial Regulator then you won't be able to take over his business. I suspect you have the QFA however which allows you to advise on financial products. There's a big difference in terms of regulation. My suggestion would be to talk to your boss. If you want to take over his business you may have to change into a partnership / ltd co and apply for a licence that way. Of course he's going to have to be agreeable to that. A gentleman's agreement has no standing in law and as such is what it is - a verbal agreement with no standing in law.

Thanks for that . .

Its actually my dad, i know business is business, but Im comfortable believing that he wants me to have the business.

I suppose I hate talking to him about it, but I was wondering if he died and everybody pretty much knew (and it was in his will) that he wanted me to run the company, would it be a case whereby the company ends with his life, or I would have a case to take up the reigns . .