Share allocation

Discussion in 'Growing and Managing a Business' started by nauticalnomad, Feb 7, 2016.

  1. nauticalnomad

    nauticalnomad
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    My wife is starting a business for herself and this is the first time she has done anything like this.
    She is starting up a company to deal with countries external to Europe.
    She has all the knowledge and experience and is working as a Lawyer.
    She has a friend also a lawyer of 7 years who my partner is wanting to let in on the start up.
    Although the friend is not knowledgeable of the business but willing to learn and has nothing to contribute with other than invisible support and the fact they have been close friends for 7 years and are from the same country.
    They do not need much capital to start up and if they do i am supporting it to some extent financially.
    I am although offering capital am not so much bothered as being a shareholder as i have my own financial interests external to this.

    The questions i have are:
    A. Is it a good idea to take on from nothing a shared partner who has basically nothing to contribute other than
    friendship and support.
    B. How many shares are applicable if doing so?

    Has anyone got any pros and cons into this situation?
    I am against it by the way as i dont see why she needs to take on an "apprentice" as well as offering her a share % upon startup.
     

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