1. Katharine is a professional dancer, but due to an injury she will no longer be able to continue dancing at the same level. She is seeking legal advice on the possible business structures she can choose between if she decides to open a dance studio.
- Advise Katharine on the legal requirements in the UK to set up as a sole trader as opposed to starting a general partnership with some other dancers.
- You feel that Katharine should also know the pros and cons of a limited liability company.
a. Should Katharine decide to set up a limited company she needs to know the difference between ordinary, preference and redeemable
shares. Explain what these are to her. Which do you consider would be most appropriate in her case?
- Time has gone by and Katharine is running a successful business that has expanded to six dance studios and her students have won many international dance prizes. So successful that she has been approached by a large dance studio network that would like to acquire her business.
- Explain to Katharine what it would mean for her company to be acquired.
- The other party lets Katharine know that they would also be interested in an equity joint venture project developing dance studios
aimed at the over 60s. Advise Katharine as to the pros and cons of this type of business structure. Provide real life examples.
- Explain to Katharine why you believe a merger would be a better option. Provide real life examples.
- Katharine and the party interested in acquiring her company have entered into a pre-contractual agreement under which part of the purchase price was paid to Katharine. However, at the last minute Katharine decides she does not what to let go of her business. The acquiring company is threating to sue her for breach of contract.
- Advise Katharine as to whether or not she may be sued for breach of a condition or warranty. Outline the effects of this.
- Katharine would rather avoid going to court and so asks you to tell the other company that she is willing to try to resolve the matter by
either conciliation or arbitration. Explain what this would actually entail and which you consider to be most appropriate and why.