The problem with 50:50 companies - deadlock paralysis
When two people go into business together as equals and form a company together on a 50:50 basis (ie with half the voting shares each) corporate lawyers call this a ‘deadlock company’. It’s a bit negative isn’t it? Like getting married and people calling you a deadlock couple.
This introductory chapter to deadlock companies in my latest Guide about shareholder agreements explains why deadlock paralysis can be such a pain and the basic ways in which you can prevent it.
Jack and Jill foundation at The Jack and Jill Children's Foundation
1 年Hi Andrew James can u send me a message please and thank, I just want someone to talk to.
Thanks for this Andrew James. A timely reminder for clients. I can vouch for how much of a problem this issue - most believe they will never fall out with each other!