Picture the scene – your best friend, that person you’ve known since you were in primary school has a great business idea.

They want you in.  You have the industry know-how; the secret sauce if you will.  You are going to set up the business from scratch together; start a company; partners for life.

You will be joint-directors and own 50% of the company’s shares.

Everything will be split down the middle 50:50. You will share the spoils that will make you both richer than Croesus.

It’s too good to turn down.  You’re in.

Of course…you might want to change the name of the company.  The proposed one your partner is so keen on is a little naff, but that’s an easy fix.  Certainly, the logo needs some work too…and you would probably want to cut a little from the initial marketing plan. Push that back a little until you are on your feet.

But all that can wait…get the company up and running and let’s go.

Well…hang on a second.

What happens if you have a disagreement about how the company should run?

I know, I know…it has never happened in the whole time you have known each other.  You are two peas in a pod, you’re Matt Damon to his Ben Affleck, you’re French to her Saunders, you’re Lennon to his McCartney…

Unfortunately, despite the best-laid plans, successful company ownership rarely ends in the same hands as the people who started it.

What if your circumstances change?  What if you want out after a year?  What if you want to take on investors but your partner is not so keen?  What if you want to retire on your yacht and they want to push on?

That is where a shareholder agreement will help.

What is a Shareholder Agreement?

A shareholder agreement sets out, from the outset, some rules surrounding your ownership. What happens if…as it were.

So rather than jump in.  Have a think about exit strategies (I suspect it is unlikely you will still want to be actively involved from your respective care homes – even if they are in Mauritius).

Talk it through when you are still friends, just in case there comes a time in the future when you might not be.

Shareholder Agreement Solicitors in London and Guildford

Gordons’ corporate team would be happy to discuss your needs and get you started on the right path.

To speak to a member of our team today, please call 01483 451 900 (Guildford) or 020 7421 9421 (London). Alternatively, please email sols@gordonsols.co.uk or fill out this contact form.