Amidst the doom and gloom of the enforced lockdown due to COVID, there were also many heartening stories of new businesses being founded. Many of these businesses were started by friends, or maybe an existing business had to reinvent itself in order to survive.
In such times, what is absolutely crucial is that there is in place a written agreement between the parties. Often, like a marriage, things may start off very well, but what happens if things start to go wrong? The pressure of business life affects Directors and Partners in different ways and what started as a good idea last year as two people sharing an idea, may now become two people with differing views as to future plans etc.
Therefore, it is absolutely crucial that you have in place a formal agreement that will protect you, be that a Partnership agreement or a Shareholders agreement. This document has the potential to save many thousands of pounds in legal fees should the owners of the business fall out or priorities change. What you do not want is the Courts telling you how to run your own business. A well drafted agreement can keep you in charge of the process and rightly so! After all it is your business and you may have put everything on the line to make it happen.
For advice on protecting your business please give our experienced business lawyers a call for a free consultation on 01792 468684 or email enquiries@pgmsolicitors.co.uk.
