New company, a contract between partners, what is it called?

[eddyyss]

We are thinking to find someone who can create a document that would allow us to have some kind of protection and divide shares even. Meaning a contract that would protect each other in case someone decides to leave or change their mind towards the company etc.

Just wondering what contract we should ask the lawyer to make and what is it called?

What is your experience with this type of contract?

 

[Mr D]

Shareholder agreement.

Judging by the experience of those without one, its essential while you are still talking now.

 

[KAC]

Have a look here

 

[eddyyss]

Thanks, guys!

Also, we are two people that share dividends and are in the company house register.

What's the best now to add two extra people? Do I just tell HMRC or companies house? Is it best to add it in the register or just add them to the 'shareholder agreement'?

 

[Paul Kelly ICHYB]

Are you partners or shareholders?

What type of business are you setting up?

 

[KAC]

Thanks, guys!

Also, we are two people that share dividends and are in the company house register.

What's the best now to add two extra people? Do I just tell HMRC or companies house? Is it best to add it in the register or just add them to the 'shareholder agreement'?

An easy albeit unhelpful reply from me. This is the time you should be taking professional advice as it is so easy to mess everything up. A little spent now could save a shedload of problems in the future

 

[eddyyss]

Are you partners or shareholders?

What type of business are you setting up?

We did already set an IT company. Currently, in the record it's only 2 partners, but we want to add 2 additional partners.

The question, is how and what's the best way to add two extra persons in the record?

We think is the best to do 4 partner type of business where each of us will own 25%

 

[Chris Ashdown]

You dont have partners in a normal ltd company, you have Shareholders who each own a proportion of the company

Shareholders own the company and can also select the Directors who run the business for the shareholders

Shares can vary from a simple allocation of the same type of share to different combinations each which may have voting rights of some sort, or may not have them, and some entitled to dividends if the Directors vote on issuing them

Share certificates are issued by directors who also send in the completed forms to companies house and also notify CH of any changes

Shareholders agreements are complicated and in reality need to be written by a lawyer as they can solve many problems at a latter date by pre thinking them out and making a contract between the shareholders on what will happen. for instance someone leaving the company may have to offer the shares to a existing shareholder based upon a agreed settlement rate before offering them to a outsider. Each is different and well worth the cost

A Director has legal obligations and duties to the company and all directors can be held responsible for the company's actions, Its important to read up on these responsibilities and also the power of shareholders based upon their percentage of shares they own. Its not just a title

 

[eddyyss]

You dont have partners in a normal ltd company, you have Shareholders who each own a proportion of the company

Shareholders own the company and can also select the Directors who run the business for the shareholders

Shares can vary from a simple allocation of the same type of share to different combinations each which may have voting rights of some sort, or may not have them, and some entitled to dividends if the Directors vote on issuing them

Share certificates are issued by directors who also send in the completed forms to companies house and also notify CH of any changes

Shareholders agreements are complicated and in reality need to be written by a lawyer as they can solve many problems at a latter date by pre thinking them out and making a contract between the shareholders on what will happen. for instance someone leaving the company may have to offer the shares to a existing shareholder based upon a agreed settlement rate before offering them to a outsider. Each is different and well worth the cost

A Director has legal obligations and duties to the company and all directors can be held responsible for the company's actions, Its important to read up on these responsibilities and also the power of shareholders based upon their percentage of shares they own. Its not just a title

Thank you for the post.

We are limited company.

I just had a question what is the best way to add two extra people on board and if I have to ask a lawyer or someone else to write a contract between all of us..

 

[Paul Kelly ICHYB]

So, a shareholder agreement!

 

[Naheed Mir]

No doubt, it will be a shareholder agreement.