I have a new client who has proposals to set up a couple of other companies. At the moment he sub-contracts his services as he is a bankrupt and cannot participate in the company. At the moment the main shareholder is a partner - not wife - 100%.
My issue is - if company over time exapnds to be a very profitable enterprise - the sub-contracting client will have no rights over the withdrawal of reserves, and also the risk that shareholder could fall out with cleint - he is left out in the cold.
My question is: i have been informed that at very least this document should be in place to protect client, but that there will still be issues as he is a bankrupt - that is getting money out of the company, which he effectively runs - except through invoicing as a consultant to company.
Any ideas - experience of this situation.
I could also do with advice re shareholder being main shareholder of the other companies. these companies will all be seperate, providing very different services and employing management/employees to run operations.
Thanks for any advice
Judith Paine