This document is an agreement for the assignment of an industry-specific licence. This assignment will be used where the business, which is using a licence, is sold.
This assignment will need to be agreed between the assignor and assignee. Practitioners will need to consider whether the regulator or body that granted the licence will be required to give its consent to the assignment.
Consideration has not been included in this assignment, as it has been assumed that this is covered under the business sale agreement (see the separate documents “Business sale agreement – sale of assets (short form)” and “Business sale agreement – sale of assets (long form).”
Licence terms and conditions
Practitioners will need to review the terms and conditions of the specific licence that is to be assigned, to determine whether any additional requirements or obligations should be included in this assignment. For example, there may be a requirement to hold certain insurances before the licence may be transferred, or for an assignee to be approved by the body that granted the licence.
Certain licences have restrictions in the event of sale of the business operating under the licence. For example, a liquor licence in Western Australia requires that any sale or transfer agreement be subject to the approval of the relevant person within the governing body.
Practitioners will also need to consider whether there are tax, stamp duty or GST implications under this assignment.
This document has been authored for LexisNexis by Rosalyn Gladwin, Principal, Gladwin Legal.
This document is prepared with the assistance of Specialist Editor Murray Landis, Partner, K&L Gates.