Doing business with friends can by very tricky to handle. Lots of businesses have failed due to excessive familiarity between shareholders and top management. Connect Management Consulting was engaged by a group of individuals who were friends.

Forming a PLC in this case meant that each individual in this partnership as well as the management team had limited liability, and were therefore not personally liable for any debt or other company financial burden.

An agreement that is acceptable for six different parties is not always easy to arrive at. Getting a law firm to draw up such an agreement is also not the best idea because such agreements have to bring out many finance and industry specific aspects, including operational policies and organizational design.  Connect Management Consulting  took into account the interests of all parties.

Services delivered, leading to the agreement, included:

– Determination of Business supervision responsibilities

– Proposition of procedures on decision making (investment decisions, management decisions, human resource decisions)

– Elaboration of responsibilities within the framework of a private limited company

– Facilitation of the creation of a company bank account

– Setting up procedures for recruiting top management and overseeing the first recruitment process

– Organizational Design services (In this case, the shareholders opted for a centralised management system with the option of implementing a cloud-based information management system.)