As a leader in the mining and resources industry, you know that staying ahead isn’t just about what’s happening underground – it’s about protecting and growing what you’ve built above ground. Legal challenges can surface without warning, but with the right strategies, you can safeguard your business and turn potential risks into opportunities.
Here are the top 10 legal considerations for mining and resources business owners to help maximise your business potential and safeguard your interests.
1. Has your business outgrown its original structure?
Has your business evolved since you first laid its foundations? It might be time to re-evaluate your corporate structure to ensure it’s still the most effective and tax-efficient setup for where you are now – and where you’re headed. A well-structured organisation not only mitigates risks but also sets the stage for enhanced profitability. Partner with your legal and accounting advisors to optimise your structure for today’s operations and tomorrow’s succession plans. Even if your structure is solid, don’t overlook the importance of keeping all foundational documents up to date..
2. Review Supply Agreements
When was the last time you took a close look at your supply agreements? Regular reviews are essential to ensure you’re still getting the best products and services at competitive prices. As your business grows, what worked in the past may no longer meet your needs. Additionally, with the Unfair Contract Terms regime in play since November 2023, non-compliance isn’t just risky – it can be costly. Protect your business by staying informed and ensuring all contracts are up to date and fully compliant.
3. Assess Premises and Lease Agreements
Your business premises play a significant role in your operations. Be vigilant about lease option terms and the deadlines for exercising those options. Missing these deadlines could result in losing your lease option, putting your business in a precarious position. If your lease is nearing expiration or lacks renewal options, start negotiating a new lease or exploring alternative locations well in advance. Early planning can improve your bargaining position and help secure favourable terms. Additionally, consider whether your premises needs refurbishment or updates to accommodate the evolving needs of your business.
4. Consider Insurances
It pays to consider if your current insurance coverages are still appropriate for your business needs. If your business has grown, you have moved Premises or made new plant and equipment acquisitions, your client base has changed in character or simply if you have just “set and forget” insurances for some time, it may be worth considering your coverage to determine if you need to add policies, change levels of coverage or potentially even remove policies that may be costing you money where risks may have reduced or been removed. A review (and obtaining alternative quotes) can also potentially weed out if you insurer has been increasing premiums on you outside of normal commercial paramneters.
5. Refresh Employment Agreements
Employment laws are constantly evolving, and staying compliant is essential to avoid costly legal issues. Regularly reviewing and updating your employment agreements is crucial to ensure they reflect current legal requirements. Additionally, address any performance management concerns, conduct annual reviews, and consider implementing incentives like share schemes to retain key employees. Legal advice can help you navigate these changes and maintain a positive workplace environment.
6. Ensure Privacy Compliance
In an industry where handling sensitive information is routine, maintaining a robust and compliant privacy policy is non-negotiable. Ensure that your privacy policy is up to date and that your business practices align with the Privacy Act’s requirements. Properly collecting, storing, and using personal information is critical, especially when dealing with employee personal data or other confidential information. Non-compliance can lead to severe consequences, including financial penalties and reputational damage.
7. Formalise Shareholder Agreements
Clear and well-documented shareholder agreements are essential for preventing disputes and ensuring smooth business operations. If your current shareholder arrangements are not fully documented, now is the time to formalise them. Even a concise and straightforward agreement is better than an incomplete or unsigned draft. A signed shareholder agreement provides clarity and helps protect the interests of all parties involved.
8. Plan for Business Succession
Even if succession planning seems distant, it’s never too early to start. A well-thought-out succession plan can ensure the continuity and success of your business when the time comes for a transition. By dedicating time and resources to this process now, you can make informed decisions that align with your long-term business and personal goals. Succession planning also provides peace of mind, knowing that your legacy will be preserved. We recently wrote a business campaign series especially for business owners in mining and resources, you can read more here.
9. Organise Personal Financial Affairs
Your personal financial affairs are closely tied to your business, and keeping them in order is vital. Ensure that your Will is up to date, especially after significant life events such as the birth of a child, a new partnership, or major business changes. An updated Will protects your estate and ensures that your wishes are respected, providing security for your loved ones.
10. Protect Intellectual Property
In the fiercely competitive mining and resources sector, your intellectual property (IP) is one of your most valuable assets. Regularly reviewing and updating your IP portfolio – including trademarks, designs, and patents – is crucial to safeguarding your business. Registering trademarks isn’t just a formality; it’s a powerful tool to secure your business’s innovations and protect them from infringement. Don’t leave your IP vulnerable – take proactive steps to fortify your rights and ensure your business’s unique assets are fully protected.
Secure Your Business’s Future with Proactive Legal Management
Taking a proactive approach to managing your business’s legal affairs is essential for sustained success in the mining and resources industry. By conducting an annual review of these critical areas, you can better anticipate challenges, capitalise on new opportunities, and maintain a strong, resilient business. Engage with your professional advisory team to navigate this process confidently, ensuring your business remains well-positioned for growth and longevity in a dynamic and competitive landscape.
For more information, please contact Craig Hong for a 20-minute, no-obligation discussion. You can call Robert at +61 (0) 7 3007 2000 or email contact@resourcesunearthed.com.au.
To learn more about Craig, visit this link.
Resources Unearthed is a solutions hub that connects senior executives, established professionals, and business owners in mining and resources with proven specialist advisers.
