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I want to offer someone around 10-15% of my company i and my partner have 50% 50% - so this new person is coming in she wants 20% equity - I dont want to give any directorship to this person just in case it gets messy however this person I would offer the 20% of the sale of the business if we were to sell the business eventually we ar elookign to get the value upto 10 mill in a year - so could i get a contract signed that if the business was ever to be sold we would offer 20% of the sale to her. What kind of power does that one 20% holder have of if was to give ownership of 20% equity? does everyone have to agree on a business decision do we have to justify what we do to that person if 20% - what does having more than 50% mean to that director what about having 80% does that person have more say. UK law im in the UK

November 27, 2008 by Anonymous

Everything that you require is possible. What will be needed is a carefully drafted agreement dealing with all the rights and obligations of the parties on the sale.