I hate lawyers
So many people do, that is until they need one.
People do lament the shades of grey that are inherent in the law, but it is that which allows innovation in business structuring. The service trust for professional firms only came about because an innovative accounting firm in the 1960's wanted to separate some of the assets from the accounting owners. ATO took them to court and the court found for the accountants.
It is only because of the success of Companies in limiting liability that we have all those provisions which have been created to try and get the directors. Director penalty notices, personal guarantees etc were designed to do just that and the continued attempts to be able to pierce the corporate veil are wrong IMHO.
If, however, the directors don't own anything, then apart from criminal proceedings in certain situations, there is a lot more protection.
I have just put a client through liquidation and personal bankruptcy and while that is still painful,he had no personal assets. He is a beneficiary of several trusts, one that owns a high cashflow business, some others that own real property. I have a feeling that the people that control those trusts will look after this client, purely out of their generosity and ensuring that it does not conflict with any bankruptcy issues etc. He ended up losing what was a large and very successful business, that had he not had to borrow against to pay out his ex-wife, would have managed to get through the current down turn. Obviously losing something you built up over 20 odd years is still quite devastating, but knowing you won't be destitute helps.
I am always for setting up great structures early on, things grow over time and yes it is a bit more expensive at start up, but no where near as expensive as trying to reorganise when you have grown.
Just some ramblings from one of those people that Devank hates