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Need information on using shares in company as guarantee
30-May-2023 (In Startup Law)
We are a start up vompany in IT field and have recieved first project. The firm that has offered us project want 20% as gurantee. Is there any other option legaly that we can provide as guarante.
Taking into consideration your query and the above facts.
There are various ways to take the deals forward.
However best legal opinion/ advice can be given on getting further inputs.
Best Regards
There are various ways to take the deals forward.
However best legal opinion/ advice can be given on getting further inputs.
Best Regards
Helpful?
16+
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Adv. Harshad Rathod
Pune | 100+ Answers
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This is an arbotrary kind of commercial transaction. If you are providing service, they are supposed to provide you with money.
Gurantee is given for funds and not for projects.
Kindly go through the contract that they have asked you to sign and make sure that the 20% is gurantee and not something else.
Also, any investor would be glad to invest lot of money on 20% share basis. You do not need to give your share and work for the person too.
I would advise you to ask them to sign a contract that says that he shall have a right of either enforcing you to complete your part of the contract or get compensation from you if you fail to carry out the project instead of giving him a 20% share.
Gurantee is given for funds and not for projects.
Kindly go through the contract that they have asked you to sign and make sure that the 20% is gurantee and not something else.
Also, any investor would be glad to invest lot of money on 20% share basis. You do not need to give your share and work for the person too.
I would advise you to ask them to sign a contract that says that he shall have a right of either enforcing you to complete your part of the contract or get compensation from you if you fail to carry out the project instead of giving him a 20% share.
Helpful?
25+
25+
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