Who can own a Dental Body Corporate?
It has now been over a decade that dentists can run a dental company or a Dental Body Corporate (DBC). We are commonly asked what proportion of dental shareholders (i.e. registered dentist or a dental care provider) have to be involved?
Well the answer is none!
This allows dental companies to be a potentially attractive vehicle for non-dental investors.
This has to be tempered by the fact that the legislation requires that a majority of the Directors have to be dental(i.e. registered dentist or a dental care provider).
It is advisable for a Shareholder’s Agreement to be entered into at the DBC formation to set out the shareholder and director obligations. This is confidential and should hopefully avoid dispute later.
A Cross Option is also an invaluable tool to consider at the same time to cover the critical illness or death of a party and use life policies to ‘cover’ these circumstances.