Selling shares of my company

Log in to reply
J

Janemorley74

Free Member
Jul 30, 2023
22
2
  • #1
    Good morning,

    I am after some general advice. Please bare with me as I have autism and these might sound silly questions or be obvious.

    I started up a business during covid and it turned into a limited company then vat registered so doing ok.

    I have always wanted to do two or three things, ideas and I'm one of these people who love setting things up and get a real kick out of it,but then once establishes seem to get fed up and stuck.

    So I decided to list it for sale about a year ago.

    I had some offers etc but one if to buy just 55% of the business and that person wants to add it to a group of their operations, take some stock from my store, and add services from their other stores.

    They also have a idea of franchise which I also wanted to do but am again limited to the know how.

    My concerns would be I obviously lose control, I'm currently on payroll, who is financially in control of bank accounts? paying expenses?, can I sell my shares later on, if I do decide to sell my shares can they impose a value i can't reject?, can they force me to resign without payment etc

    Positive position I do get capital upfront to do other things I wanted, I can step away from full hands on, I could sell my remaining share later on either to the other director or external? First refusal.

    Thank you for reading. Honestly any advice would be much appreciated x
     
    Mark T Jones

    Mark T Jones

    Free Member
    Nov 4, 2015
    11,665
    5
    6,708
    Hampshire
    www.fitoutfinance.co.uk
  • #2
    The real answer here is that you need dedicated & ongoing advice from a professional, otherwise you will end up in a right mess.

    But start by giving yourself some clarity on what you actually want to happen, both short and long term.

    Autism in business is essentially a title for a specific set of strengths & weaknesses - The key is to play your strengths and use professionals to bridge your weakness.
     
    • Like
    • Love
    Reactions: Chris Ashdown, The Resolver, martin_shl and 2 others
    Upvote 0
    K

    kordan.walker

    Free Member
    May 11, 2026
    6
    3
  • #3
    Janemorley74 said:
    Good morning,

    I am after some general advice. Please bare with me as I have autism and these might sound silly questions or be obvious.

    I started up a business during covid and it turned into a limited company then vat registered so doing ok.

    I have always wanted to do two or three things, ideas and I'm one of these people who love setting things up and get a real kick out of it,but then once establishes seem to get fed up and stuck.

    So I decided to list it for sale about a year ago.

    I had some offers etc but one if to buy just 55% of the business and that person wants to add it to a group of their operations, take some stock from my store, and add services from their other stores.

    They also have a idea of franchise which I also wanted to do but am again limited to the know how.

    My concerns would be I obviously lose control, I'm currently on payroll, who is financially in control of bank accounts? paying expenses?, can I sell my shares later on, if I do decide to sell my shares can they impose a value i can't reject?, can they force me to resign without payment etc

    Positive position I do get capital upfront to do other things I wanted, I can step away from full hands on, I could sell my remaining share later on either to the other director or external? First refusal.

    Thank you for reading. Honestly any advice would be much appreciated x
    Click to expand...
    None of those are silly questions—if you're selling 55%, the answers depend largely on the shareholders' agreement and any director service agreement you sign. Things like control of bank accounts, who approves expenses, whether you can sell your remaining shares, how they're valued, and whether you can be removed as a director or employee should all be clearly documented before any deal is completed. I'd strongly recommend getting independent legal and accounting advice before agreeing to anything, as the terms matter far more than the percentage alone.
     
    Upvote 0
    fisicx

    fisicx

    Moderator
    Sep 12, 2006
    46,865
    8
    15,479
    Aldershot
    www.aerin.co.uk
  • #4
    Selling 55% means they could have control of everything - including the bank account. They will be your employer and may not even want you on payroll.

    Get professional help with this. Don’t rush the sale. It could take many months of negotiation before you get close to completion.

    And remember, director, shareholder and employee are three totally separate entities. You can be one without the other.
     
    Upvote 0
    gpietersz

    gpietersz

    Free Member
    • Business Listing
    Sep 10, 2019
    2,788
    2
    742
    Northwhich, Cheshire
    pietersz.net
  • #5
    There are ways of keeping control: e.g. some of their shares could be non-voting. A shareholders agreement might help. You are going to need professional help with this. You could try suggesting that you look at ways of keeping operational control and see how they react - a clear refusal will signal that they do want to take control
     
    Upvote 0
    The Resolver

    The Resolver

    Business Member
    • Mar 31, 2006
    3,860
    4
    1,635
    Chester and London
    www.boardroomresolve.com
  • #6
    As @kordan.walker says these are all matters to be negotiated and contained in a Shareholders Agreement (plus possibly also in a Directors Service Agreement). But I fear from how you write that you have already done the dela and are now a 45% shareholder with no Shareholder Agreement, Obviously if so you are now in a weak position to negotiate a fair arrangement. Having said that I can advise how to negotiate from here and guide you into presenting a reasonable Shareholders Agreement that is fair and attractive to both parties.

    You can take up a free call as in my sig below.
     
    Upvote 0
    Log in to reply

    Latest Articles

    Top Bottom
    Community
    Articles
    Menu