Using the IRAC method

In 2015, after completing their agricultural science university studies, Gus and Phoebe who are best friends and who are passionate vegetarians set about establishing a business under the name of Outwith Meat. The business involves the production and delivery of a range of plantbased alternatives to meat products, for serving in higher- end restaurants and cafes. The business operated as a partnership but in 2017, Outwith Meat Pty Ltd acquired the business, which proved highly successful with the plant-based products developed closely being able to mimic the texture and mouthfeel of meat. As at the nancial year ending 30 June 2023, Outwith Meat Pty Ltd had 40 employees and an annual turnover approaching $52 million. This success was achieved through the efforts of Gus and Phoebe, who are directors, shareholders and full-time employees of Outwith Meat, and their reinvestment of the profits of the business; they have also beneted from a line of credit from their local bank. In order to fund further expansion of the business into other States, Gus and Phoebe are now interested in obtaining investment from other sources: possibly family members, although they are also open to investment from other sources. (a) What considerations would have led to the legal advice given to Gus and Phoebe in 2017 to structure the business as a company, rather than stay as a partnership