We are often asked to advise on a Company having a 50-50 share and profit allocation.

When first starting out, there is little to divide and to argue over. It is thus easy to agree on a 50-50 allocation of rights and profits. What happens however when the business hits rough water?

Our response is the following: Avoid the 50-50. In a company where the share capital is held equally between 2 shareholders, a dispute between them could lead to a standstill and could be disastrous for the underlying business.

Should you wish to find out more, contact our team.