Sometimes, a company will try to transfer or sell its shares, so that it can get some cash or bring in a new associate. However, there are certain things you should do to make sure that both the buyer and the seller are protected.

Current account contributions are one of the best ways to give your company cash on the short-term. Normally, associates can get their money back whenever they want, but it is possible to “block” this account.

When creating a company, it’s possible to set up an associate’s pact to deal with difficult situations between associates.
In this article, we’ll focus on the dangers you may face by not having such a pact.

One of the main advantages of this pact is the fact that it’s confidential. Indeed, in principle, the only ones who know about this pact are those who are involved. As such, what happens if someone were to break this agreement?

Distributing the social capital means distributing the “power” between the associates. As such, distributing it based on the financial contributions of each associate may not be such a good idea, especially when said associates will be taking an active role in the company.

While it’s easy to determine the value of contributions in cash (giving a certain amount of money to the company), finding the value of contributions in kind (giving a certain asset to the company) can be more complicated.