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This article gives an overview of the risks that the management possesses during the time
of its acquisition. There are also numerous steps and strategies suggested by the authors to
minimize the risks. It is shown that the different types of acquisition poses various types of
problems. For example, in an acquisition by share sale, the business employees are employed by
another entity, there is a need for transfer of the affected employees. On the other hand, the
acquisition by asset sale causes the problem because the new owner may need to terminate the
employees of the former business. Currently, there is no law ascertaining that there would be an
automatic transfer of the employees from the vendor to the purchaser in Australia. The position
of the contractors most especially in labor-only contracts was also discussed and it was suggested
that it must be dealt in the same way that businesses are dealt. Various disadvantages and risks
of transferring the assets or the ownership of an independent contractor for the employees, the
vendor, and the purchasers. In addition to this, it is cited that a vendor have an obligation to
consult with its workforce about the proposed business sale. This obligation may arise from the
employment contract or on the enterprise agreement and may cover the topics of termination of
the employees. It was further cited that the failure of the company to consult, or to consult
meaningfully and effectively may result in a lawsuit against the vendor. The article also
discussed the problems which may arise such as genuine redundancies and redeployment which
leads to unfair dismissal. All of the discussions are based on statutes or laws particularly the Fair
Work Act and the long list of precedent setting court decisions. Overall, the article provides legal
advice to the businesses employing multiple employees about the existence of a potential
problem that could hurt them legally. This is due to the fact that the sale or acquisition of the
business is not a process limited only to the transfer of ownership but of the employees as well.
Opinion
There is nothing to argue about the article because all of its contents are based on law.
The interpretations and the inferences made by the author are purely legally based and were
derived from past experiences and case studies which showed the problems that may arise from
the transfer of ownership and management of business. Following the legal provisions of the
statutes and the court decisions will help the businesses minimize conflict that may arise. More
importantly, the companies have duties and responsibilities that must be complied with based on
justice and equity although it is not necessarily imposed by the laws. This article contains
minimal inferences and personal opinions of the author. This is due to the fact that it is highly
based on the legal provisions and therefore, the role of the author is limited to interpreting and
discussing it.
I think that the article is very helpful for businessmen because of the fact that most of
them disregard this issue. Business owners who are trying to sell their businesses only think of
getting rid of the company and accepting the purchase price from the buyers. However, business
their employees. As a result, majority of the problems may arise and be resolved through the
entrepreneur may lead to the frustrations by the employees. I agree with the suggestion of the
author of the article that the vendors must inform the employees of the conditions between him
and the buyer so that they will have knowledge of what to expect. This would minimize the