Olvera works with company directors to understand risk points in their business and protect their assets in high-risk scenarios.
As company directors enter into new ventures banking on success, the more experienced ones also plan for failure. In reality, the most effective asset protection structures we can adopt, with the optimal tax position, are those commenced before the initial investment is undertaken.
There are over 250 pieces of separate state and federal legislation in Australia, which impose personal financial liability on directors and officers. It’s important for directors to understand and avoid these financial liabilities.
Asset Protection Risk Management are suited for directors of businesses with one or more of the following concerns
Olvera’s asset protection and risk management services include:
Preparing an independent assessment of your corporate and debt structures classified into passive and active asset holdings.
Determining your personal and business risk profile and appetite statement, as well as allocating your risks into key categories.
Recommending and implementing changes to your corporate and personal asset structure to quarantine and mitigate risk.
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Our team of specialist advisors are dedicated to providing expert guidance and personalised solutions for your business.
Neil Cussen, a leading authority in insolvency and reconstruction, offers 35 years of experience, excelling in asset tracing, business recovery, and cross-border insolvencies.
Tony contributes 15 years of insolvency experience to Olvera Advisors, with diverse industry expertise and a unique background in ASIC’s Enforcement Division.
Get answers to common questions about Asset Protection and Risk Management
Asset protection involves implementing strategies to protect a company and its owner’s assets from potential risks such as creditors, lawsuits, and insolvency. It can include activities such as legal structuring, transferring ownership, and limiting liabilities to protect valuable assets.
Asset protection is a part of risk management, as it is a specific strategy used to prevent directors from financial distress in adverse scenarios.
Risk management, and the process of protecting one’s assets, helps directors identify, assess, and mitigate potential risks that could threaten their financial health, operations, or reputation.
As business owners, many events may affect their bottom line and personal liability. Sometimes, these events might be beyond their control. Effective risk management protects directors from personal liability and helps ensure business continuity.
Business owners can be personally liable for company debts if they fail to meet their legal obligations, such as trading while insolvent or failing to pay taxes. For example, Director Penalty Notices (DPNs) are one way the ATO can hold directors accountable for unpaid company tax liabilities.
Insolvent trading is also a significant issue faced by many directors. If liable, they face a significant threat to their personal assets and may also have to close their business to settle debts.
Each company and director must undergo an assessment to determine the best way to protect their assets. However, common strategies include:
For the best chance of effective recovery, asset protection strategies should be done proactively before any threat of insolvency. This is because protective measures that are taken when the company is already insolvent may be voided under government laws.
It is recommended for business owners take protective measures and secure their assets if they experience a change in market and regulatory conditions.
Our team will first identify any risk faced by the company or director. This includes a comprehensive review of business operations, legal obligations, financial health, and industry-specific threats. We will then outline an asset protection plan that outlines strategies to mitigate them and secure your assets.
Asset protection should be a proactive measure, implemented before or at the first sign of financial distress or legal challenges. This can include regulatory changes, supply chain issues, decrease in demand, or declining profits.
Waiting until a business is already facing insolvency may limit the effectiveness of asset protection strategies.
Failing to manage risk can result in business insolvency, loss of key assets, director penalties, legal action, and reputational damage. It may also lead to personal financial exposure for directors if they are found liable for company debts.
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