ARE YOUR SHAREHOLDERS GOOD FOR THE MONEY? ARE YOUR DIRECTORS EQUIPPED WITH RELEVANT EXPERIENCE?

As a lawyer, i’ve had the pleasure of receiving instructions from clients as regards getting their companies registered. While receiving their instructions, i’ve noticed a trend that is very common amongst most of them…
It’s the trend of nominating company agents such as; directors, shareholders who in most cases have no business taking such roles in the first place!
So, i ask. Dear founder, are your shareholders good for the money? Are your company directors experienced and capable of taking critical decisions on behalf of your company?
Please forget sentiments when it comes to this issue. This is business!
If you’re thinking of running a sustainable business in these times, you must think deeply on this issue before setting out to register your company.
It’s alright to include your best friend and family members as agents of the company. But while doing so, please ask yourself, when it’s time to call up my shareholders to pay up their shares to enable the company raise funds for business, would they be equal to the task? When the company is facing a critical management issue, would the directors be available to provide a working solution to the challenges at hand?
If you haven’t thought about this, please do before you set out to get your company registered because when push comes to shove, then you’ll know what your company is made of.
SELAH!!

Cynthia Tishion
Cynthia is a lawyer and currently serves as Head of Corporate / Commercial Services at LEX – PRAXIS. With her passion for business and entrepreneurship, she is actively engaged in creating awareness on the legal aspect of businesses through various platforms such as writing, public speaking engagements.

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