Pre-partnership Agreement

bawn92

We have a "company" by company i mean four people working together on a project. We have made no money but are very soon going to. We have agreed on equity verbally which was done when the third member joined. But no written agreement.

What I was wondering was is it possible to call a board meeting a take a vote on who gets what percent of the equity. One member hasnt been pulling there weight and we wish to re assign him less equity.

What would happen in the case he refuses ?

Dose a verbal agreement hold up or can this be over written when we write up a partnership agreement?

NoQuarter

Are you an incorporated company?

You have s.205 (oppression) obligations to comply with if so. Be careful.

234

bawn92 wrote: »

We have a "company" by company i mean four people working together on a project. We have made no money but are very soon going to. We have agreed on equity verbally which was done when the third member joined. But no written agreement.

What I was wondering was is it possible to call a board meeting a take a vote on who gets what percent of the equity. One member hasnt been pulling there weight and we wish to re assign him less equity.

What would happen in the case he refuses ?

Dose a verbal agreement hold up or can this be over written when we write up a partnership agreement?

You don't have a company, you have a partnership, and you definitely need legal advice.

Partnership can be a complicated area and you need to be made aware of the fiduciary duties towards your co-partners that come with partnership. It would be advisable to draw up a written partnership agreement as soon as possible.

Also, there is no equity in a partnership, just agreements as to ownership and profit-sharing.

Pat Mustard

There was a band who was happy in the haze of a drunken hour before they became miserable as the result of bitter litigation. Now they'd much rather kick each other in the eye. :pac:

https://www.youtube.com/watch?v=TjPhzgxe3L0

Oh yeah, so my point was; get legal advice!

hullaballoo

The Mustard wrote: »

There was a band who was happy in the haze of a drunken hour before they became miserable as the result of bitter litigation. Now they'd much rather kick each other in the eye. :pac:

Oh yeah, so my point was; get legal advice!

Have you posted that before or did I just experience possibly the strangest déjà vu ever?

Pat Mustard

hullaballoo wrote: »

Have you posted that before or did I just experience possibly the strangest déjà vu ever?

I hope I didn't! Maybe I did post about the Smiths and litigation concerning partnership before, but surely not the reference to that one song.

hullaballoo

The Mustard wrote: »

I hope I didn't! Maybe I did post about the Smiths and litigation concerning partnership before, but surely not the reference to that one song.

Scary.