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What are the risks involved in percentage of shares between partners
22-May-2023 (In Corporate Law)
Hi, I would greatly appreciate if you can advise on the following: Myself along with one of my previous colleagues and his sister are in discussion to form a pvt ltd company which will be primarily into staffing business. My colleague wants to have a share of 39% while giving 28% to his sister and rest of 33% to me. What sort of risk to me I can foresee (as I'm the outsider) if we go ahead with that arrangement Please help me with your suggestions. Regards, Kiran
Dear Client,
Being business entrant you must foresee the risks. They both are from one family. What is the capital and what are the return on capital aspects. If the business will not flurish they will show losses and your share of losses will be written off from your capital and you will be sent out of partnership. It is a common practice.
Being business entrant you must foresee the risks. They both are from one family. What is the capital and what are the return on capital aspects. If the business will not flurish they will show losses and your share of losses will be written off from your capital and you will be sent out of partnership. It is a common practice.
Helpful?
22+
22+
Adv. Sistla Rama Krishna
Vijayawada | 400+ Answers
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the advice would be based on the nature of firm you running if it is registered private limited company the risk involved upto your share value only and capital contributed and if its partnership firm then there will be joint and several liability upon all the partners
Helpful?
25+
25+
Adv. Innamuri Balasubramanyam
Rajahmundry | 500+ Answers
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