[Question] Can you buy a business from a deregistered cc?

[Kerryn]

I am new on this forum, so if I am doing this wrong please point me in the right direction. We are looking at buying a business, and I already have my own cc, so we just wanted to buy the customer list, assets, "goodwill" etc. Today I saw that this cc has been deregistered. Would we be able to still buy the "business"? k

[Justloadit]

When you buy a business, make sure you do not buy the debtors or creditors, but rather the goodwill and the list as you have it. Also ensure that you have a new bank account, and start under a new name, it may sound similar to the old one. The reason for this is that you do not know what skeletons are in the closet. You just may be buying someone elses troubles if you do.

[AndyD]

If you just purchase the 'goodwill' and the customer list you may want to include a sensible restraint of trade agreement as part of the deal to prevent the old owner poaching the customers back again.

[Dave A]

Today I saw that this cc has been deregistered. Would we be able to still buy the "business"? k

You'd be buying the assets of the business, not the cc itself...

By my understanding when the cc is deregistered it loses its separate juristic personality. Thus ownership (and liability) of the cc passes to the members in their personal capacity (essentially an unincorporated partnership).

Based on that I suggest you make sure you have the signatures of all the listed members of the cc on a purchase/sale agreement, and the assets you are buying are clearly specified. The main concern would be one of the members coming back after the sale and disputing the representative signatory's authority to sell the asset.

[Kerryn]

Thanks

Thank you all for your input, this all helps me

[BusFact]

I second what Dave said and would add that you try make the sellers in the purchase agreement the cc and all the individual members.