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Background information

Henry and Henriette have been best of friends since high school. Henry is currently employed
as speech therapist and Henriette is a physiotherapist. After working many years as employees
they have decided to join forces and set up a Health Care Centre. They come to your office and
seek your advice in setting up their new business venture.

Henry would like to know and understand what his obligations and liabilities are as co-owner
and director should he and Henriette elect to set up a company.

Task

You have been asked by your managing partner to prepare a draft letter of advice for Henry and
Henriette which addresses their concerns. In particular the letter of advice should address the
following:

What are the various business structures that are available to Henry and Henriette with respect
to the type of business that they would like to establish.

Assume that a company structure is the most appropriate business entity to operate the Health
Care Centre and provide advice on:
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 the type of company to be formulated;

the various types of obligations and liabilities that each director is subjected to; and

can Henry and Henriette be employees of the company.

Please ensure that you set your work out clearly and that you proof read your final draft before
submission.

You will be assessed on the following:

Ability to identify the various legal issues, state the relevant legal principles as they apply to
Henry and Henriette.

Spelling, grammar, expression and layout of work.

Answers must be correctly referenced using the Australian Guide to Legal citation.

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