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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I need a 1 page letter, so that I will legally be intitled

Resolved Question:

I need a 1 page letter, so that I will legally be intitled to a 5% share of a business.
I will not be a voteing shareholder, just entitled to 5% of to cash when the business is sold.
I will be working in the business for a daily rate not as an employee.
Thanking you in advance
Simon Beales
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.

Alex J. : Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you.
Alex J. : In my opinion you have two options:
Alex J. : 1. The company pays you a commission based on its yearly profits at 5%:
Alex J. : 2. It you do not want voting shares the company can issue you with non voting preference shares.
Alex J. : With these two options in mind. Do you want to be a shareholder of the company?
Alex J. : I look forward to hearing from you. Kind regards AJ
Customer:

At present HS owns 100% of a Limited Company.

Customer:

At present HS owns 100% of a limited company. I am helping her by finding investment funding of up to £300k. This will dilute her holding but she has agreed to give me 5% of whatever she holds. My 'reward' will be in 5-7 years when the Company is sold.

Customer:

In the meantime I will be retained at a daily rate. So I just need a legal form of words that will achieve that!

Customer:

Regards

Customer:

Simon

Alex J. :

Hi, Thank you. It is not quite as simple as that and I will explain why:

Alex J. :

1. If you are a shareholder then you have tangible ownership in the company;

Alex J. :

2. The alternative is you are consultant on this fixed daily rate with a bonus payable for the company profits.

Alex J. :

Can you confirm do you want shares?

Alex J. :

Kind regards AJ

Customer:

Hi Alex, The single shareholder does not want to dilute her voteing rights. Therefore I will not be given any shares. However she is prepared to give me 5% of whatever she gets from the sale in the future. All I am looking for for you is a legal statement to that effect. Regards Simon

Expert:  UKSolicitorJA replied 3 years ago.
Hello Simon,

You may enter into a contract on the following lines:

Date of agreement

your name and address and her name and address

In consideration of Simon helping HS to secure investment funding of up to £300,000 in respect of xyz limited, HS shall pay Simon a fixed finders fee of 5% of any future sale of shares by HS in xyz limited, such fee to be net of any deductions.

In addition to the foregoing, Simon shall be paid a rate of xxx per day, net of any applicable taxes and deductions, for each day that Simon provides consulting services to xyz limited.

Your and her names and signatures
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience: English solicitor with over 12 years experience
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