![](/media/oqsjsjcj/3f118bb4.jpg?width=1002&height=668&bgcolor=White&v=1da611968e9a430)
Many co-owners will choose to operate the business through a limited company. The most significant benefit of forming a company is the benefit of limited liability. Generally, owners will not be personally liable for a company’s debts unless they provide creditors with personal guarantees or indemnities.
Nevertheless, company owners will need to discuss and agree with any co-investors what roles they will play in the management of the company – whether they will act as directors or be shareholders only.
It is advisable to have a shareholders’ agreement. Key issues include:
From a practical perspective, discussing the above issues at the outset of the venture is a useful exercise. Also, if any issues do arise, a shareholders’ agreement will be of great assistance in avoiding a costly and time-consuming dispute as it should provide a clear framework to resolve such disputes.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here