Welcome back, Stephen hunt from hunt hospitality International, talking about the five essentials in capital raising. So we’re on to the second essential, and that is a good lawyer. So you need to find the appropriate lawyer, after having discussed with your accountant, what sort of vehicle or company that you’re going to set up, it’s essential, truly essential that you have a good lawyer who is an expert in that field, they really need to be one who knows all about Corporation Law. Because as your company grows, and depending on what size you want to grow to, you need the right advice about that specific company. I can tell you an interesting story about what happened to me with initially when I set up my fund, the constitution of that fund was faulty. So effectively for me to do any capital expenditure on my pub, to have 100% of the vote of the shareholders to do it.
Now, generally speaking, and depending on the style of operation and business that you have, you might need 65% of the vote to get any work done or a capital expenditure, or certain things changed in your business. In this particular constitution, it was overlooked at the start when 100% vote. So I had to go back to all of my investors, and we had to change the constitution. And the only way we could do that was by having that 100% vote to change the constitution. So luckily, I went to all the investors, and at the time, it was great. They’re all on board and saw the fault with it. And so we actually got the constitution changed. So to avoid that issue, make sure that your lawyer gives you the right advice on the Corporation Law, and you need to know and you need to go into all detail. Do not be afraid to ask as many questions as you possibly can. And please, please make sure you have the right lawyer for the right company. All the best guys.
I look forward to chatting to you again next week. And please have a look at my contact details and reach out if you need any help.
