When one owner leaves.
WHAT TRIGGERS IT
Disagreement One party wanting out Retirement or illness Death Breach by one party
WHAT TO ESTABLISH
What the agreement between owners says.
WHY
Without one, the position is governed by default rules that suit nobody.
WHAT AN AGREEMENT SHOULD HAVE ADDRESSED
How a share is valued Who may buy it Whether it must be offered internally first What happens on death or incapacity What happens on breach How deadlock is resolved
WHAT TO DO IF NO AGREEMENT EXISTS
Negotiate, with advice, and document whatever is agreed.
WHAT TO ESTABLISH ABOUT VALUE
A method, agreed or independently determined.
WHY A METHOD
Arguing about a number without a basis does not resolve.
WHAT TO ADDRESS
Payment: amount, timing and security
What the departing owner may do afterwards Guarantees they have given Loans between them and the business Continuing involvement, if any
WHY GUARANTEES SPECIFICALLY
A departing owner remains liable under guarantees unless released.
WHAT TO OBTAIN
Release from lenders, where possible.
WHAT TO DOCUMENT
The transfer, the payment terms and the mutual release.
WHY MUTUAL RELEASE
It prevents claims resurfacing later.
WHAT TO UPDATE
The company's registers and filings.
WHY
Ownership must be recorded accurately.
WHAT TO AVOID
Informal arrangements between people who once trusted each other.
WHY
They are the ones that produce the worst litigation.
