Seven deadly sins of partnership investment

TheStar Sat, Jul 27, 2019 10:00am - 4 years View Original


ONCE you get into your 50s and 60s, life is all about attending marriages and funerals. Similarly, in businesses, you would see more breakups in partnerships but life would go on for those still alive. Just like marriages, some partnerships do tend to break down due to so many varied reasons.

In the first place, couples normally get married because of love. Love of the heart, love of the money, and love of the parents (arranged marriages). Men have proven that they have a larger capacity to love more than one woman as can be seen from them having more than one wife while women are more specific as to the reasons on why they marry. Macam-macam as they say in Malay. In a sole proprietorship, life is simple and straightforward. You make all decisions and you sign everything. But you are liable for all liabilities and all legal matters. In professional partnerships, all partners are liable and as such the partners will have to spend a fair sum buying liability insurance. Each firm have their own unique shareholder/partnership agreement.

For private limited companies, before the amendment to the Companies Act in 2016, there is a requirement of having a minimum two shareholders and two directors. So for sole proprietors like me having to set up private limited company with limited liabilities, it was normal to appoint my wife as a director with one share. My wife would have to sign all legal documents, bank matters, director’s resolution and final accounts. Thankfully, I have a wife who understands the necessity of such chores and she has supported me blindly all these years, so to speak. Sign saja la, they say.

There are many types of partnerships who start off as a private limited company. This is due to the fact that it has a limited liability when sued. Limited as to the total net worth of the company, shareholders do not have to fork out additional capital if the company goes broke unless as a director or shareholder, you signed as a guarantor to any bank loans, share sale etc.

...

Full Article on TheStar

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

SIGN 0.970

Comments

Login to comment.