Six agreements that must be entered into by the co-owners of the company in order not to go through the courts.
Recently, the Äripäev newspaper, in two turns, wrote about the disagreements of the owners of the company Ridango, better known for the fact that it developed a system of validation of cards for public transport in Tallinn. The company is not small - 54 employees, eight million euros of turnover, almost half a million euros of profits earned in 2016.
So, two shareholders who control through a joint company 42.5% of the company have quarreled. One accuses the other of having illegally withdrawn money, he responds in response that everything was correct and agreed. Insult on offense, paper on paper, lawyer on lawyer. The case has already reached applications to the prosecutor’s office demanding to initiate a criminal case and, in general, only lawyers in this case will work. Although shareholders do not participate in the operational management of the company (fortunately there is a hired director), all these disassemblies badly affect the image of the company. As far as I know, the company planned a fairly large investment that did not take place.
This is one of the examples when proprietors quarreling among themselves begin to not want to destroy their own business. This is because, starting a business, the owners were interested in developing the business in order to move it forward. But at that moment they did not think about writing their relationships on paper. It is so natural - we are all human and none of us wants to think about the bad, that people with whom we do business may not be decent; that the employees we hire can deceive us; that partners do not always keep their promises, and so on. We just hope for people, especially we all hope for our business partners. And I was hoping and my hopes were not lost. Over time, disagreements arise that led to the fact that the company lost its profits and as a result the owners began to lose profits.
So that disagreements between owners do not destroy the money machine, it is necessary to agree on six points at the very beginning.
How will we share the profit and when will it be divided? The main reason for the disagreements of the owners is a different understanding of the contribution to the company and, as a result, the disagreement about how to divide profits and when to divide them. Often, one brought to the company an idea, another money, who does what is not spelled out, one works more than others, and they want to share profits from the third month. It is necessary to prescribe who, when and for what part of the profit can claim, which will be directed to the development of the company, which will go to the reserve.
We need to agree on how differences will be resolved. Disagreements will inevitably arise in the company - therefore, it is necessary to clearly state which issues are resolved by one hundred percent consensus (for example, taking a loan), and in which questions the opinions of the owner who has more experience in this field should be taken into account.
We must agree on how the owners will diverge. It can always happen that the partners will disperse and for this case you need to agree in advance how to transfer the case; at what price each of the partners can sell their share; how the company will be evaluated in order to avoid disputes about the value of the company; whether partners have priority right to purchase and much more.
We must agree on how the owners will change the strategy of the company. During the life of the company, the company's strategy may change many times depending on the requirements of the market. It is necessary to stipulate in advance the frequency with which the owners will meet and discuss the company's development strategies, otherwise the company may lose its temper.
One of the most important agreements is how the owners will analyze the company's financial results. If you do not agree in advance on how to analyze finance, which is important for owners, otherwise it will inevitably turn out that co-owners look in different directions, analyze companies differently and they have disagreements on how to develop the company.
All agreements must be entered into in writing only. People understand things differently, and in order not to argue about who had what all the agreements meant to be written on paper.