Company share

[Joemit7850]

what if one day ur boss offer to sell you some small percentage of the company share?

will u take up the offer?

is a small company but we are expecting quite a good result coming year

 

what is the thing i need to consider or ask?

[Ronnchee]

Just buy it. The rest the company secretary will take care.

 

Shareholders dont assume any responsbility, directors do.

 

Things to consider/ask, the Financial report of the company, look at the P/L, and the retained earnings, if you ask me.

[Damienic]

depends how much they offer you for the share price..ie discounted price or full mkt price?

[Joemit7850]

what is P/L and retain earning?

[Joemit7850]

nope dun think at discounted price but he did mention that not to worry about the payment can be by installment

[Route88]

How much being offered to staff,and what is the price offered to public.

[Joemit7850]

no la we re small company and not public listed

he say his intention is to let me enjoy if the company prosper as well,

i am the only one being offer

[Espire]

is it private limited? or wat

 

Ok my take on this... most likely, ur boss see u as a credible worker to him and indepensable tool to the company in terms of profit making.

 

So offer u shares to hold u back... it may seems to you like u had overnite became ur own boss.. u can reap what u sow...

 

However ur boss will still hold the majority shares and be the decision maker in the running of the company.

 

On the side note, he will start to disappear or what some people like to say (M.I.A) from the company, cos he know the company is in good hands and start to relax and enjoy life... on and off come back company take alook and sign cheques.

 

On the whole, it's not totally a bad thing, it's just what you want.

Edited June 24, 2008 by Espire

[Joemit7850]

yup is P/L

so i guess this should be a good venture wor..

[Ultramega]

Make sure it's stated you are allowed to sell the shares to anyone. if not no point.

[Joemit7850]

the contract only allow the shares to sell back to the company or himself if i left next time

[Espire]

Look like I am spot on.

[Dh15]

bro..P/L dun mean pte. ltd. It actually means profit/loss statement of the company.

Edited June 24, 2008 by Dh15

[Joemit7850]

huh? what do u mean spot on?

[Ultramega]

Well, in that case, if I were you, I would make sure it's stated that the shares can be sold back to him or the company ANYTIME of my choice, and that when I decide to sell, he or the company MUST buy.

 

Bottomline, you got to plan for exit right at the beginning. You never know when you'll need to exit.

[Comnao]

based on yr replies, i dont think you are ready for this thing.

i dont think you know enough about company laws to be a "mini boss"

better to pass on the offer... i think it smells fishy

 

nxt thing you know, the company go bankrupt nxt month and you are liable for the debts as a "shareholder"

[Greatodin]

I assume you are not into Finance or Accounts.

 

Maybe you should have a casual chat with your accounts dept to see how well your company is doing. Check with them whether your company is in debt or looking to expand?

[Wish1719]

what if one day ur boss offer to sell you some small percentage of the company share?

will u take up the offer?

is a small company but we are expecting quite a good result coming year

 

what is the thing i need to consider or ask?

at a discount to market?? is the company listed??