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Company set up with funder - question on shares


Mick Hurst

New Member
Hi all

I am involved with setting up a new business, I have someone willing to fund the entire start up.
For his investment, he wants a majority shareholding in the business - I would have a minority share.

Can I legally, put into our agreement, that once his investment has been repaid (plus an agreed interest) that I then have the majority shareholding?
Or can this be overturned by him, as he is the majority shareholder and can change this agreement?

He has no interest in running the business, just wants to protect his investment, so will use the majority shareholding to ensure his investment is repaid.
The business will be run and managed by myself and wouldn't want my years of hard work just to line his pockets for years to come.

Please advise