New Partner

[Construction Training]

Hi there, I'm after some advice.

We are a relatively new business (9 months), already quite well established in the area.

I use an external trainer who I get on with well, he has suggested/requested to come on board as a partner with the business. I am happy with this as it would share an ever increasing workload, he would also bring further opportunities to the company through his skills and thus give chance for the company to grow more and explore new avenues.

I also know that if he doesn't come onboard with me he will start up in competion with me ( this doesn't greatly worry me). Basically I want him onboard and he wants to come onboard.

What I am wondering is
1. How we go about this (shareholders agreement etc.)
2. What protection both parties should have if we decide to go our own way after a few years
3. Should I charge him for joining the company?

Anything else I haven't considered???

All advice is greatly welcomed

Thanks

 

[Scalloway]

1. Find a solicitor who is experienced in this area. Probably better to thrash out the details between yourselves before getting a formal agreement drawn up.

2. That should be in the shareholders agreement. A non compete clause would be worthwhile

3. He should take some shares in the company. Issuing new ones would be best. Anything over the nominal value of the shares would need to be negotiated. That could be a share premium, shares of a different class or a loan. Your accountant can help with this.