Employment Lawyers Can Answer Your Employment Law Questions
Good morning, thank you for contacting Just Answer my name is***** am a solicitor and I will be assisting you today.
This is a personal decision for you and your partner however if you can provide me with some further background about the business, your role, your partners role, time spent working for the business etc I will try to point you in the right direction.
Thank you for the confirmation, this does make sense, is your partner happy to make you either a shareholder, director or an employee?
Thank you for the confirmation, the shareholders and directors have two completely separate roles in the company. The shareholders own the company by owning its shares and the directors manage have the day- to-day control over the company.
Your role appears to be all encompassing and it would be advisable that you become a shareholder and a director as you are clearly involved in the day to day management of the company.
What percentage of share you and your partner agree would be personal, however as I am advising you, and it is clear you have invested considerable time and effort getting the company up to where it is today it would be sensible to request a 50/50 split with your partner. This would protect your position within the company as best as possible.
As a director, there are two options executive or non executive director given your role I would advise that you should become an executive director and the primary advantage of this is that you are also an employee of the company and with this you will gain statutory employment rights.
I think it would be prudent (as you have mentioned) that if you and you partner decide to go your separate ways what would happen to the company, would you sell your shares? Would you retain shares but step down from being a director etc.There are numerous options and some form of contract stating this would be a worthwhile investment as disputes between shareholders/directors can be unnecessarily lengthy and considerably expensive.
Glad to be off assistance, I would advise that you get a solicitor who specialises in commercial/contracts to draw this up for you.
You can use locate a solicitor on the law society website, you can use quick search, select company and commercial under the business header put in your postcode and a list of local solicitors will be generated. the link is below: