Becoming a Partner in a Ltd company

[obutch123]

Hello

Im very new to the forum, and need some advice on partnership.

I need some advice regarding partnership.

I have been working for a Ltd company now for the in the region of 3 years, the company is currently made up one of one singular director and everyone else is employees. Recently I have pushed the MD to become a partner and have some sort of share in the businesss. .
This we have both agreed on has to happen going forward as I am becoming and taking a large role in the running of the business.

We are trying to devise a method of me buying in without having to outlay a lot of money which I dont have. I predict the company is worth in the region of 400k ish and I would looking for a 10-20% share initially, has anyone come across or have any ideas how this can work without me having to outlay the 40-80k needed for the purchase of the share.

Any ideas of experiences would be much appriciated.

Regards

 

[Bob]

Might be worth having a word with Graham Ross a well respected member on here. Have a look at one of his websites about shareholder agreements which are very important if you will have a minority shareholding

 

[Bob]

Sorry but the link to Graham should have been http://www.ukbusinessforums.co.uk/forums/member.php?u=6183

 

[thelegalstop]

I would just say - make sure you have a partnership agreement and a shareholders agreement.

 

[businessfunding]

Totally agree re shareholder agreement
It is usual in these case to have an earn-in, where, instead of buying your shares you earn them over a period of time with extended targets. Unless the owner is keen for quick cash (why?) - then this should be win-win.