Key Legal Documents Start-Ups Should Engage Lawyers (Not AI) to Draft

June 11, 2025

Launching a start-up in Australia is an exciting venture, but it also involves navigating a complex legal landscape. Engaging a lawyer to draft and review your foundational legal documents is crucial for protecting your interests, ensuring compliance, and setting your business up for long-term success. Below is a guide to the key legal documents every Australian start-up should consider, and why professional legal drafting (and not AI) is essential.


1. Company Constitution


Sets out the rules for governing your company, including director powers, shareholder rights, and meeting procedures. A well-drafted constitution tailored to your business can prevent future disputes and ensure compliance with the Corporations Act.


2. Shareholders Agreement (or Partnership Agreement)


Defines the rights and responsibilities of founders and investors. Covers share transfers, dispute resolution, exit strategies, and decision-making processes. Essential for start-ups with multiple founders or external investors to avoid misunderstandings and future conflicts.


3. Employment Agreements and Contractor Agreements


Clearly set out roles, duties, remuneration, confidentiality, and intellectual property ownership for employees and contractors. These agreements must comply with Fair Work legislation and other employment laws. Proper agreements help prevent disputes and clarify expectations.


4. Confidentiality and Non-Disclosure Agreements (NDAs)


Protect sensitive business information, intellectual property, and trade secrets when dealing with third parties, potential investors, or collaborators. NDAs are critical in the early stages of product development and fundraising.


5. Intellectual Property (IP) Assignment Agreements


Ensure that any intellectual property created by founders, employees, or contractors is legally owned by the company. This is vital for protecting your brand, technology, and other intangible assets.


6. Website Terms & Conditions and Privacy Policy


Terms & Conditions set the rules for users interacting with your website or app, limiting liability and setting out acceptable use. A Privacy Policy is legally required if you collect personal information, ensuring compliance with the Australian Privacy Act. Both documents are essential for online businesses and e-commerce start-ups.


7. Supply, Service, and Client Agreements


Define the terms of business with suppliers, customers, and service providers. Include payment terms, delivery obligations, warranties, and dispute resolution mechanisms. Well-drafted contracts reduce the risk of costly disputes and ensure clarity in commercial relationships.


8. Employee Share Scheme (ESS) Documentation


If you plan to offer equity to employees, clear documentation is required to comply with tax and corporate regulations. Lawyers can help structure schemes that attract talent while protecting the company.


9. Fundraising and Investment Documents


Includes term sheets, share subscription agreements, convertible note deeds, and loan agreements. Proper documentation ensures compliance with fundraising laws and protects both the company and investors during capital raising rounds.


10. Company Registration and ASIC Filings


Lawyers can assist with registering your company, obtaining an Australian Company Number (ACN), and ensuring all ASIC filings are accurate and timely. This includes drafting documents required for company formation and ongoing compliance.


Why Engage a Lawyer and Not AI for These Documents?


Inaccurate or Incomplete Clauses or Drafting: AI can miss critical legal terms or misunderstand your business context, leading to unenforceable or non-compliant agreements or documents.


False Sense of Security: AI-generated contracts may look professional but can be legally flawed or outdated, increasing the risk of disputes.


Lack of Customisation: AI cannot account for your unique business model, industry, or risk tolerance, leading to generic agreements that don’t fit your needs.


Regulatory Compliance Risks: Australian laws are complex and change frequently. AI tools may not capture all compliance requirements, exposing your start-up to fines or litigation.


Poor Drafting from Bad Inputs: AI is only as good as the information provided. Vague or incomplete instructions can result in agreements that do not reflect your intentions.


Conclusion


While AI tools and templates can be helpful for simple, low-risk documents, start-ups in Australia should always engage an experienced lawyer to draft or review critical legal agreements and documents. This ensures your business is protected, compliant, and set up for long-term success. Investing in legal expertise at the outset can save your start-up from costly mistakes and disputes down the road.

June 18, 2025
Selling or buying a business can be a complex process involving significant legal, financial, and operational considerations. Engaging a lawyer with experience in selling and buying businesses is crucial to ensure the transaction proceeds smoothly, complies with Australian law, and protects your interests—whether you are a buyer or a seller. Role of Lawyers in Business Sales and Purchases Lawyers play a central role in every stage of the business sale or purchase process: Due Diligence : Lawyers conduct thorough due diligence to uncover hidden risks, such as undisclosed debts, pending litigation, regulatory issues, or problems with contracts, leases, and intellectual property. This process helps buyers make informed decisions and gives sellers confidence that all disclosures are accurate. Drafting and Reviewing Agreements : Lawyers draft and review all key agreements, ensuring they are tailored to the specific transaction and comply with Australian law. This includes the main business sale agreement and any ancillary documents. Negotiating Terms : Lawyers negotiate terms on behalf of their clients to secure favorable outcomes, clarify obligations, and address any ambiguities or potential pitfalls in the contract. Transfer of Assets and Contracts : They manage the legal transfer of assets, leases, permits, licenses, and ongoing contracts, making sure all necessary approvals and assignments are obtained. Employment Law Compliance : Lawyers advise on the treatment of existing employees, transfer of entitlements, and compliance with workplace laws, ensuring a seamless transition for staff. Settlement and Completion : They oversee the settlement process, confirming that all conditions are satisfied, payments are made, and legal ownership is transferred without outstanding liabilities. Post-Sale Support : Lawyers can provide ongoing advice on post-sale obligations, such as restraint of trade, handover arrangements, and dispute resolution. Key Agreements and Documents Lawyers Draft The main legal document in a business sale is the Business Sale Agreement. Lawyers also prepare or review several related documents to safeguard their client’s interests: Heads of Agreement or Term Sheet : A preliminary, usually non-binding document setting out the key terms agreed by the parties before the full contract is drafted. Business Sale Agreement : The comprehensive contract detailing all terms and conditions of the sale, including what is being sold (assets, shares, goodwill), price, payment terms, and settlement arrangements. Transfer Deeds : For transferring ownership of specific assets, intellectual property, or leases. Employment Agreements or Transfer Notices : To address the transfer or termination of employees and the treatment of their entitlements. Non-Disclosure Agreements (NDAs) : To protect confidential information during negotiations and after the sale. Completion Checklist : A practical tool to ensure all steps are completed before settlement. Why Legal Advice Is Essential Attempting to buy or sell a business without legal guidance exposes parties to significant risks, including: Unintended assumption of liabilities. Disputes over what is included in the sale. Problems with the transfer of leases, contracts, or licenses. Employment law breaches. Tax and regulatory non-compliance. Lawyers help ensure all legal requirements are met, documents are properly drafted, and your interests are protected throughout the transaction. Conclusion Once the value of a business reaches a certain level, lawyers become indispensable in business sales and purchases. They provide expert guidance, draft and negotiate robust agreements, and manage the legal complexities of the transaction. Engaging a lawyer early in the process is the best way to help ensure a successful, compliant, and dispute-free outcome.
June 3, 2025
The importance of having a valid Will in Western Australia cannot be overstated, with recent legislative changes highlighting the inadequacies of dying without proper estate planning. While approximately 50% of adult Australians currently lack a valid Will, the consequences of intestacy can be severe, ranging from unintended asset distribution to family disputes and significant legal complications. The Western Australian government's recent updates to intestacy provisions demonstrate recognition of these problems, yet these statutory defaults remain insufficient substitutes for personalized estate planning that reflects individual circumstances and wishes. Ensuring Your Property is Distributed According to Your Wishes The fundamental purpose of a Will is to provide clear direction for how your property should be distributed after death, ensuring your intentions are legally recognised and implemented. A Will serves as a legal document that sets out how you wish your property to be distributed after you die, allowing you to specify exactly which beneficiaries should receive particular assets. Without this crucial document, state law will decide what happens to your property through statutory intestacy provisions, which may not align with your personal preferences or family circumstances.  The importance of this control becomes particularly evident when considering the diverse nature of modern families and relationships. Your Will can ensure that a long-term partner receives appropriate provision, that estranged family members are excluded from inheritance, or that charitable organisations benefit from your estate. The legal framework in Western Australia recognises that individuals should have the autonomy to make these decisions during their lifetime, rather than having their wishes determined by generic statutory formulas. Furthermore, a Will provides certainty and clarity for your loved ones during an already difficult time. When family members understand your explicit wishes, it reduces the likelihood of misunderstandings and provides comfort that they are honouring your intentions. This clarity becomes especially important in complex family situations where multiple relationships, step-children, or business interests are involved. Avoiding the Limitations and Problems of Intestacy Laws The statutory intestacy provisions in Western Australia, governed by the Administration Act 1903 (WA), present significant limitations that demonstrate why relying on these default rules is problematic for most families. Recent changes to these laws in March 2022 illustrate both the inadequacy of the previous system and the ongoing limitations of any standardized approach to estate distribution. Under the updated intestacy rules, a surviving spouse with children now receives the first $472,000 of an estate plus one-third of the remainder, while a spouse without children receives the first $705,000 plus half of the remainder. However, these statutory distributions often fail to address the unique circumstances of individual families, as evidenced by real-world examples from legal practice. One particularly troubling case involved a wife of 17 years who had to share the bulk of her husband's estate with an estranged but independently wealthy stepchild, leaving her unable to pay the mortgage on the family home. Another case saw a parent powerless as an ice-addicted stepchild received a payout of a quarter of a million dollars when her husband died. These examples demonstrate how intestacy laws can produce outcomes that no reasonable person would intentionally choose. The intestacy system also creates procedural complications that can be avoided with proper Will planning. When minor children are involved in intestacy situations, any agreements regarding distribution require Supreme Court approval, adding time, cost, and stress to an already difficult process. Additionally, survivors often find themselves in the position of having to negotiate with children and stepchildren or bringing proceedings under the Family Provision Act 1972 (WA), creating family conflict and legal expenses that could have been avoided with proper estate planning. Protecting Your Family Through Proper Planning A Will provides essential protections for your family members that extend far beyond simple asset distribution, particularly in relation to minor children and preventing family disputes. One of the most critical functions of a Will is the ability to nominate guardians for your minor children, ensuring that if both parents die, there is a clear legal framework for who will care for the children. Without this nomination, the courts must make decisions about guardianship based on their assessment of the children's best interests, which may not align with the parents' preferences. The appointment of an appropriate executor is another crucial family protection measure that a Will provides. Your executor is responsible for the distribution of your estate in accordance with your Will, and choosing someone you trust ensures that your estate is managed competently and in your beneficiaries' best interests. This appointment can prevent family conflicts by providing clear authority and responsibility for estate administration, rather than leaving family members to navigate complex legal requirements without guidance. Estate planning through a Will also helps protect your family from the emotional and financial stress that commonly accompanies intestacy situations. When someone dies without a valid Will, the resulting uncertainty is more likely to result in significant delays, additional costs, and disputes between family members regarding estate administration. These problems occur at an already difficult and stressful time, compounding the grief and emotional burden on surviving family members. A well-prepared Will minimises these risks by providing clear instructions and legal authority for estate administration. Preventing Unintended Consequences from Life Changes Marriage and divorce create particular vulnerabilities for estate planning that demonstrate the importance of maintaining an up-to-date Will throughout your life. In Western Australia, marriage can invalidate your existing Will unless the Will was made in contemplation of that specific marriage. This means that couples who marry without updating their estate planning documents may find themselves in an intestacy situation despite having previously executed valid Wills. The interaction between divorce and Wills is equally complex and potentially problematic. While divorce does not automatically invalidate a Will in the same way marriage does, divorce can invalidate your Will under specific circumstances in Western Australia. Specifically, divorce invalidates your Will if there is no evidence of contrary intention in the Will, the divorce takes effect under the Family Law Act 1975 (Cth), and the marriage ended on or after 9 February 2008. This creates a significant risk that divorced individuals may unintentionally leave their estate to former spouses unless they proactively update their estate planning documents. These legal complexities surrounding marriage and divorce underscore the importance of not only having a Will but also maintaining it throughout your life as circumstances change. Regular review and updating of your Will ensures that it continues to reflect your current wishes and family situation, preventing unintended beneficiaries from receiving your estate due to outdated documentation. Expressing Personal Wishes and Practical Arrangements Beyond asset distribution, a Will provides an opportunity to express important personal wishes and make practical arrangements that can provide comfort and guidance to your family. A Will can include instructions about whether you wish to be buried or cremated, whether you wish to donate your organs, and other personal preferences that help your family understand and honour your values. These provisions can be particularly meaningful during the grieving process, as they provide clear guidance about your wishes during a time when family members may be struggling to make difficult decisions. The ability to address financial arrangements through your Will extends beyond simple asset transfers to include practical matters such as debt forgiveness and executor compensation. You can use your Will to forgive debts owing to you, which can be particularly important in family business situations or when you have provided financial assistance to family members during your lifetime. Additionally, you can specify payment arrangements for your executor, recognizing the significant time and responsibility involved in properly administering an estate. These practical provisions demonstrate how a Will serves as more than just a legal document for asset transfer—it becomes a communication tool that helps your family understand your values, priorities, and practical expectations. This comprehensive approach to estate planning ensures that your passing involves not only the legal transfer of assets but also the continuation of your care and consideration for family members' practical and emotional needs. Conclusion The creation of a valid Will represents one of the most important legal documents you will ever sign, with implications that extend far beyond simple asset distribution to encompass family protection, personal expression, and practical estate administration. The recent changes to Western Australia's intestacy laws, while improving upon previously outdated provisions, serve primarily to highlight the inadequacy of any standardized approach to estate planning that cannot account for individual circumstances, relationships, and values. The documented problems that arise when people die without valid Wills—including family disputes, unintended beneficiaries, and administrative complications—demonstrate that intestacy provisions should be viewed as an emergency backup rather than an acceptable alternative to proper estate planning. For Western Australians, the legal framework provides clear opportunities to exercise control over estate distribution, protect minor children through guardian nominations, and express personal values through comprehensive Will provisions. However, this framework is only effective when individuals take proactive steps to create and maintain valid Wills that reflect their current circumstances and wishes. Given the complexity of marriage and divorce implications, the importance of executor selection, and the ongoing changes in family relationships throughout life, regular review and updating of wills becomes as important as their initial creation. The evidence strongly supports the conclusion that every adult Western Australian should prioritise the creation of a comprehensive Will as a fundamental responsibility to their family and loved ones. While professional legal assistance is recommended to ensure proper execution and comprehensive coverage of estate planning needs, the alternative—leaving these crucial decisions to statutory default provisions—represents an unacceptable risk to family welfare and personal autonomy that can be easily avoided through proper planning.