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James Millar
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As Johny says…this has can of worms all over it. As I see it. You are getting benefits associated with the family business (I’m not sure if you are an owner of the current business and what other extended family are owners) and yet looking to divert an new opportunity for you own gain. Now it seems that your family (SOME of) are CURRENTLY passing on the opportunity and have indicated that are happy for you to pursue with some reduction in your compensation from the business. Well that’s fine and good until (a) your new business performs really well. Their attitudes may (will) change and the hands may come out, (b) your time contributed to the their old business reduces and adversely effects them, (c) the extended stakeholders and family that were perhaps less supportive will come for you first. Often pushed by their spouses that are less connected to the family (throw into the mix long standing family friction because you were the favoured child or the like etc etc and bang…see you in court for breach of common law duties of employment and directors duties for diverting interests (aka cherry picking) to alternate entities. Failure to act in interests of shareholders. Assuming you are a director of old co.

If you do this I highly recommend you get ALL parties to document clearly in writing what the terms of this arrangement will be and that they have NO recourse against you if it works out well.

At least Xmas lunch will be interesting.

PS to answer your question on the preferred structure of your new business. It completely depends on the nature of the business, your family situation, your tax situation, asset protection etc etc. Too many issues to contemplate here

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