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Guaranteeing stake in company

Discussion in 'Legal' started by TrueStory, Mar 6, 2018.

  1. TrueStory

    TrueStory UKBF Newcomer Free Member

    2 0
    Hi there,

    I'm currently in full time employment and my current contract forbids me from engaging in any other commercial activity. I plan to leave my role in the next couple of months and start my own business with a co-founder. My co founder has no such clause in his contract, we currently have a couple of clients, (he's working on) and so have money starting to come in. If he were to incorporate the limited company now as the only director, is there any assurance or document we can create that guarantees I'll have a stake when I leave my role?
     
    Posted: Mar 6, 2018 By: TrueStory Member since: Sep 4, 2017
    #1
  2. The Byre

    The Byre UKBF Ace Free Member

    7,312 2,831
    Just have two shares and you own one of those two, so a 50:50 split (or whatever is required!) and do not tell your employer.

    Remember to get a good lawyer and draft a shareholders' agreement!
     
    Posted: Mar 6, 2018 By: The Byre Member since: Aug 13, 2013
    #2
  3. DontAsk

    DontAsk UKBF Enthusiast Free Member

    902 118
    Your employer can't stop you owning shares, so just make sure you are allocated the agreed share %. not being a director may, or may not, be advantageous, depending on other factors.

    TBH if you are quitting in two months anyway why are you worried?
     
    Posted: Mar 6, 2018 By: DontAsk Member since: Jan 7, 2015
    #3