Investment in Businesses and Debentures

For persons wishing to invest or join a business, it might not be appropriate for the investor to become an owner or shareholder. There are different forms of investment, and the legal implications are different depending on each set of circumstances.

Some matters to consider are:
  1. Whether the investment is purely monetary or whether you will be personally involved in some capacity (such as employment)
  2. Whether in return for the investment of capital or time, the investor shall receive shares in the business
  3. Whether Share Options are appropriate – an Option Agreement may need to be drawn up. At what value?
  4. Whether a loan or capital is envisaged – how would that loan be repaid and what level of security would be necessary?
  5. Would a Debenture be considered (a longer term loan secured on the assets of the company)?
We are able to advise you or your business on all of the above matters and we can draw up the necessary legal documents to make your arrangements secure and binding.

To arrange an appointment to discuss with one of our specialist lawyers, please contact the Company & Commercial Department partner Paul Prikryl.

Telephone: 01296 596969
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