Commentary

132 Share and loan capital from the proprietors and other related parties

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

132 Share and loan capital from the proprietors and other related parties

| Commentary

132 Share and loan capital from the proprietors and other related parties

Any outside finance provider will be reluctant to invest in a new business if the proprietors themselves are not prepared to commit themselves to a substantial initial investment. This investment will be principally in the form of equity capital in the case of a partnership, shares in the case of a limited liability company. In the case of a partnership or limited liability company where there are to be two or more shareholders, the parties may wish any proprietor who is particularly cash-rich to invest some of that

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