Black and White Financial (BWF) Pty Ltd is an established firm of financial planners and advisors who

Fantastic news! We've Found the answer you've been seeking!

Question:

Black and White Financial (BWF) Pty Ltd is an established firm of financial planners and advisors who are interested in working together with Grey and Green (GG), an established partnership of Chartered Accountants to help their clients achieve financial success. Grey and Green (GG) provide general small business services, tax advice, auditing and business valuations.

a) Grey and Green (GG) wish to incorporate as Grey and Green Pty Ltd. Can they do so under the By-Laws of the Chartered Accountants Australia and New Zealand (Revised March 2022)? If so, under what conditions? Or are GG restricted to certain practice areas if they wish to incorporate?

(5 marks)

b) What business structuring advice would you give the BWF and the directors of BWF AND the partners of GG if they wished to maximise protection of their personal assets from litigation? Why? Explicitly articulate your reasoning with reference to relevant legislation and case law, and common criteria (eg. asset protection, scope for income splitting) against which you can recommend the most appropriate solution for each firm.

c) Should BWF legally merge with GG, or should it enter a joint venture or other contractual arrangement with GG? Why or why not? Justify your response in terms of relevant legislation, regulation and common law.

Answers MUST include relevant Australian Case Laws (including sections) and legislations.