Premiumwriter2:
I'll personally draft and create a contract and get the very first investors to sign that at all times I'll own 60% of the shares.

All share sales and dilution will come from the remaining 40%. Can't come and form a company and then some modaf*ckers will push me out.

It ll be difficult to get serious investors with this contract

phazotron:


If I decide to start a company, I'm not going public.

At least 60% controlling shares in all categories. No less.

Hold majority (if not all) of the voting shares (I must find out how to do this one)

buy back as many shares as possible.

Put your trusted boys as Md and on the board of directors

hold more shares than the investors/shareholders

Make I see the good for nothing shareholder Wey wan talk rubbish

I go sack am join

Meaning u don't want to be a billionaire and don't want ur business to live beyond 50yrs

Tony142:




Boss, is it possible to own 100% of them company? Because I will like to own my company myself, I no want any useless partnership

Never sell shares at all. Forget all those Coporate world crap. Grow with time. Don't sell shares because you want to be big overnight. I would rather own a medium company and provide the best services i can and keep my shares 100% that own a mega company in partnership with anybody. You can't trust humans these days

phazotron:


How did he do this? How can one buy back his shares from the investors?

There are some shareholders that want to exist the business, so the company buys it back

Nellsworld:

Meaning u don't want to be a billionaire and don't want ur business to live beyond 50yrs

its not always the case. Read about the rothchilds, all their companies have been in their bloodlines for years. It all started with one man. Never sell shares. How will i hustle and finally blow. Then one employee that came one day to my office to beg for a job with his cv in hand now fire me one day. I won't be stupid enough to make that mistake. I don't mind growing the company into a big one with time. The story of arik air today is a reason i will never sell even 1% of my shares.

HallaDaTruth:


Necer sell shares at all. Forget all those Coporate world crap. Grow with time. Don't sell shares because you want to be big overnight. I would rather own a medium company and provide the best services i can and keep my shares 100% that own a mega company in partnership with anybody. You can't trust humans these days

I swear

Premiumwriter2:
I'll personally draft and create a contract and get the very first investors to sign that at all times I'll own 60% of the shares.

All share sales and dilution will come from the remaining 40%. Can't come and form a company and then some modaf*ckers will push me out.

Do you understand that to own 60% means you are also bringing in some funds that equates to that share.

HallaDaTruth:


Necer sell shares at all. Forget all those Coporate world crap. Grow with time. Don't sell shares because you want to be big overnight. I would rather own a medium company and provide the best services i can and keep my shares 100% that own a mega company in partnership with anybody. You can't trust humans these days

Smart founders always give a room for exist plan for their investors by putting a clause of purchasing the company's shares back

HallaDaTruth:
its not always the case. Read about the rothchilds, all their companies have been in their bloodlines for years. It all started with one man. Never sell shares. How will i hustle and finally blow. Then one employee that came one day to my office to beg for a job with his cv in hand now fire me one day. I won't be stupid enough to make that mistake. I don't mind growing the company into a big one with time. The story of arik air today is a reason i will never sell even 1% of my shares.

1%? Your own is even good, me i will not even see 0%

HallaDaTruth:
its not always the case. Read about the rothchilds, all their companies have been in their bloodlines for years. It all started with one man. Never sell shares. How will i hustle and finally blow. Then one employee that came one day to my office to beg for a job with his cv in hand now fire me one day. I won't be stupid enough to make that mistake. I don't mind growing the company into a big one with time. The story of arik air today is a reason i will never sell even 1% of my shares.

They actually sold their shares, cos it is a company, but they bought it back with time, and expanded

Nellsworld:

Meaning u don't want to be a billionaire and don't want ur business to live beyond 50yrs

Adenuga no be billionaire Abi? Glo don close?

Bros no be until you go public before you be billionaire

No be until you go public to last very long

We have private organizations doing very well

Chi, tgi, etc

HallaDaTruth:
its not always the case. Read about the rothchilds, all their companies have been in their bloodlines for years. It all started with one man. Never sell shares. How will i hustle and finally blow. Then one employee that came one day to my office to beg for a job with his cv in hand now fire me one day. I won't be stupid enough to make that mistake. I don't mind growing the company into a big one with time. The story of arik air today is a reason i will never sell even 1% of my shares.

Ur shareholders are investors that partnered into ur vision and mission, but it is left for u to know hw to draw up an exit plan for thos investors so u can re-buy ur shares, or u can sell off that business, make fat cash and start up another

Nellsworld:

Smart founders always give a room for exist plan for their investors by putting a clause of purchasing the company's shares back

That's if the investors are ready to cash out....but what of a scenario where shareholders aren't willing to sell?

30naira:


It ll be difficult to get serious investors with this contract

Not possible. If you have a solid product and solid plan, investors will come on board

40% is a sizeable amount of shares in a company.

No serious investor who sees a viable company and product will reject 40%

phazotron:


Adenuga no be billionaire Abi? Glo don close?

Bros no be until you go public before you be billionaire

No be until you go public to last very long

We have private organizations doing very well

Chi, tgi, etc

Yes glo is a public, chi is a limited liability company, meaning they ve shareholders, Adenuga don't ve up to 50% of his company's share

HallaDaTruth:
its not always the case. Read about the rothchilds, all their companies have been in their bloodlines for years. It all started with one man. Never sell shares. How will i hustle and finally blow. Then one employee that came one day to my office to beg for a job with his cv in hand now fire me one day. I won't be stupid enough to make that mistake. I don't mind growing the company into a big one with time. The story of arik air today is a reason i will never sell even 1% of my shares.

Leave bros.

As if Glo is on stock exchange.

Some of the largest companies in Nigeria arent even listed on the stock exchange.

phazotron:


That's if the investors are ready to cash out....but what of a scenario where shareholders aren't willing to sell?

Then u sell off big and start a new, now u got the cash to build and put ur children and wife as shareholders

Nellsworld:

Yes glo is a public, chi is a limited liability company, meaning they ve shareholders, Adenuga don't ve up to 50% of his company's share

You're confusing it

Glo is private limited liability company ltd

Zenith Bank is public limited liability company plc

Zenith is on Nigeria stock exchange Glo is not even though both have shares

Ones shares can be traded by the public ones shares cant

phazotron:


You're confusing it

Glo is private limited liability company ltd

Zenith Bank is public limited liability company plc

Zenith is on Nigeria stock exchange Glo is not even though both have shares

Ones shares can be traded by the public ones shares cant

Glo isn't on the stock market

Nellsworld:

Then u sell off big and start a new, now u got the cash to build and put ur children and wife as shareholders

I wan buy shares from investors you say make I sell

Iss like you need knock Abi���

phazotron:


I wan buy shares from investors you say make I sell

Iss like you need knock Abi���

Bros there are some businesses u can sell off, as an entrepreneur u are a solution provider, if you know, some investors are greedy not to sell off, u sell off the business and start another, as long u cash out big

Premiumwriter2:
I'll personally draft and create a contract and get the very first investors to sign that at all times I'll own 60% of the shares.

All share sales and dilution will come from the remaining 40%. Can't come and form a company and then some modaf*ckers will push me out.

This response shows that you're not yet ready for the big game. It's mostly how has the bigger part of the money that controls the Board.

Except if in a case where you are the majority shareholder based on what you brought to the table, not necessarily because you found the company, if not I will advise you forget about control and of those limiting mindset.

This is more reason why Africa businessmen and Entrepreneurs will always remain small. By the way, there are several technicalities to how these things work. It's not just a work in the park!

thebosstrevor1:
Yes.

Many startups founders suffer from this problem. They eventually become employees or they get sack from the company they founded

Smart founders do not allow outside investors have a higher share than them.

Doesn't matter, that's if you're futuristic with the business. Perhaps you need to read what happened during the days of Econet, Ibori and the 18
other Nigerian investors.

socialmediaman:
If the board’s collective shares are above 50%, they can fire the CEO even if he’s the founder of the company.

You are absolutely right! Pre-emptive Right in play! It's one of the salient clauses on the Shareholder's Agreement(SHA)

Agent8706:
The first time I saw this crap was in Spiderman when Norman Osbourne was fired from his own company and I thought this could only happen in the movies.

But I had an opportunity to work with corporate lawyers and knew the processes of registering a company. If you want to retain full ownership of your company, make sure you don't sell your share of the company to exceed 49.9 percent. Meaning you must have at least 50.1 percent of the company share. Anything below that and the shareholders can come together and boot you out if they have majority of the shares.

Corporate lawyers in the house can correct me if I am wrong

Your explanation is fair enough! Makes sense.

Born2winnx:
Me am giving just 30% shares out to investors.

Lol..


On what ground will you give out to the 30%? There's a process to all these stuff about company valuation and the dilution of equity in stakeholders Shareholding structure.

Genea:
Always ensure you have the controlling shares

Not when you need serious fund from VC firms for venture Financing. Most especially if you want to scale your operation beyond your current business space.

Kirkman:

Erm! I think you were referring to EMPIRE

yes sorry EMPIRE . power is ghost n tommy

Rick9:
I can never make the silly mistake of taking my company public. Lie lie. Before some group of people in the name of shareholders come and start telling me how to run my company.

Haha then your company will never grow

phazotron:


How did he do this? How can one buy back his shares from the investors?

Most stock brokerage firms have contacts of major buyers and sometimes they put advert for share holders to sell.

UnabashedIPOB:
The question “Can the board of directors fire the owner?”

The answer is ABSOLUTELY yes, as far as in countries that follow the rule of CORPORATE LAW! The Board of Directors are the ones who actually run the companies albeit that the CEO runs the day to day activity.

You can't fire the owner of a company, you can only fire an executive.

beautyhd:
It's possible if the collective shares of the directors are up to 60 percent.

In this case he is removed from the position and decision making powers taken from him but somehow still retained as the founder of the company.

60 or 50.1%