How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

Hi, I am looking to set up a limited company with a business

Resolved Question:

Hi,

I am looking to set up a limited company with a business partner. The partner is investing, or buying shares in the company and will act as the director, whereas I will provide the patented product and will be the majority share holder (55%/45%).

My question is, what type of agreement should we have in place i.e. Shareholders Agreement, Partnership Agreement etc.?

In the UK, does a shareholders' agreement constitute a partnership, together with a partnership's tax and liability risks?

Lastly are you able to provide me with such a template for the required agreements?

Thanks,

Andrew
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts : Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.
Alex Watts : This is not a partnership and therefore a partnership would not apply as it is a Limited company
Alex Watts : You need a shareholders agreement.
Alex Watts : This would set out each parties rights and responsibilities and most important what is expected of you and your partner.
Alex Watts : You also need to set out what happens if things go wrong or one of you wants to leave.
Alex Watts : But it will be a shareholders agreement.
Alex Watts : Can I clarify anything about this for you today please?
Alex Watts : As for a template we can not provide this.
Alex Watts : But Andrew I would suggest considering www.simply-docs.co.uk
Alex Watts : They are very good for templates.
Alex Watts : Does this help?
Ash and 4 other Law Specialists are ready to help you