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UKSolicitorJA, Solicitor
Category: Law
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Experience:  English solicitor with over 12 years experience
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I have agreed verbally to sell my shares in the company that

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I have agreed verbally to sell my shares in the company that I am a 50% shareholder to my business partner, my business partner is also my brother in law but the relationship and trust between us has now broken down. He has suggested that it is paid in 3 stages, the 1st payment immediate on my resignation as a director of the company,
2nd payment in October and the final payment in December, would I need a agreement drawn up by a solicitor, I am a little bit concerned as my brother in law says it is an agreement between the 2 of us and the share transfer form to be signed by me will be held at our accountants and will not be released to my business partner until the final payment has been made to myself. As the trust has now broken down I feel that the 1st payment is made then the company name is ***** ***** my shareholding worthless.
It is prudent to have a written agreement between you two to record the terms of your agreement and so that there are no issues later on about what was agreed and what was not agreed.
If you are no happy to sign the share transfers now, you may negotiate with your business partner that you will only sign the share transfer when you get fully paid, unless the accountant agrees to hold the share transfer in escrow to your order until you get paid in full.
The company name may only be changed by a special resolution and therefore it cannot be done without your consent until your shares get transferred.
Hope this helps
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