Is it okay for two people to start a company with 50 shares each?

Mondo Finance Updated on 2024-03-03

If two people start a company in partnership, it is not recommended to hold 50% of each share.

On the surface, the equity ratio of five or five open seems to be harmonious, fair and reasonable, but from a legal point of view, it is the most risky - there is no one, because the equity of two people is not more than half (that is, greater than 50%), which means that in the daily operation of the company, even if it is as small as buying and selling an embroidery needle, in principle, it needs the unanimous consent of the two people to implement. Otherwise, if either party makes its own decisions, the other party has the right to apply to the court for confirmation that the resolution is not valid.

If the relationship between the two people has always been harmonious and can compromise with each other, but if the two people have a bad relationship in the middle of the partnership, they will not be able to make any effective decisions, and eventually the company will inevitably form a deadlock, and the company will face the risk of dissolution.

In view of the above-mentioned unstable factors within the company, if the external partner has a certain legal awareness, it will inevitably carefully assess the risk of cooperation between the two parties, and the risk of losing business opportunities for the company with equity is also greatly increased.

Seeing this, you have to ask which equity ratio setting is the best? Lawyer Sun Hualiang's answer to the Hotspot Engine Project is: any other combination is better than 55, such as 667% absolute control, 51% relative control, 334% of the veto, these three data are too idealistic and theoretical, in reality, the proportion of shareholders in the shareholding, not only depends on the amount of shareholders to pay, but also has to comprehensively consider the weight of capital, technology, management, resources in the company, and the proportion of each shareholder in capital, technology, management, resources, therefore, equity setting is actually a professional work.

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