Questions & Answers
Precautions should be taken to protect a partner in an LLC
I have a 5% share in an LLC and the other partner holds 44% apart from the local partner's 51%.
I am just a namesake partner. I am not involved in the day to day functions of the company and the manager on the Trade License is my other partner.
I wish to know what happens if there is any fine on the company or any legal case? What will be my obligations?
How can I safeguard myself in this scenario?
What precautions should I take?
Hi,
In order to protect your legal interests, the involved parties must sign a Shareholders' Agreement. Through the agreement, your rights and responsibilities will be clearly defined while limiting unreasonable or unnecessary commercial constraints.
For further information, please contact us via email.
Dear Questioner,
To protect your rights and interests, a Shareholder's Agreement must be executed by all the shareholders, which must clearly outline your rights, interests, and the extent of liability in the company.
Further, kindly send us a copy of the trade license and MoU of the company so that we can review the same.
You can contact us via phone or email for assistance in this regard.
Thanks!
