Hi there in need of advise!!

[Benja. 85]

I have been give a 25% share of a new food business startup as a co-founder and working as the head chef. The business is due to open in a few weeks and pretty much everything has been set up though as of now I have had not been presented with anything in terms of a contract. Have been with the other founders ( 4 of us in total) to the bank to set up the account and my name is on that though I have had no other paperwork to sign or agreements drawn up between us.. Also I have not been required to invest any money. I get the nagging feeling that I could be getting screwed over but I need to know is there anything I should expect to have set in stone at this point, to ensure that the 25% is secured so that in the next 3-5 years I can't be told I have nothing? I know that as a part owner of a small business startup you shouldn't expect a wage but how do I secure my supposed stake in the company? Or is that covered simply by being registered on the accounts?

 

[Employer]

You need to take legal advice as soon as possible because placing your name on the bank account would make you liable for any debts the company may have with the bank. I am not quite sure why you would agree to a stake in the business without a contract? Also, suggesting that your 25% stake is the secured "so that in the next 3 to 5 years I can't be told I have nothing" is a little bizarre. If you have a 25% stake in the business then that is a lifelong stake not one with an expiry date. You need to take legal advice as soon as possible!

 

[lookingforadvice]

I would have thought if you receive shares with no restrictions or conditions, they must be yours until you decide when to sell them? This all seems way way too complicated and like the member above said, I would strongly recommend taking legal advice and at the very least make sure you have a legal agreement in place. Unfortunately, the days of dealing on the word of an individual alone have long gone.

When it comes to money, many people will "forget" previous conversations they had. He very very careful!

 

[lookingforadvice]

Did you get any further with obtaining a contract? Unless you have something written on paper which is watertight, i.e. they can't take the shares away from you, you are effectively working to build their brand at which point they may jettison you.

 

[Goingitalone]

I have read your initial post and the various comments, how did you get on with your predicament?

 

[Flores Xanthe]

You need to take legal advice as soon as possible because placing your name on the bank account would make you liable for any debts the company may have with the bank