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Thread: CC's and salaries

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  1. #1
    Email problem daveob's Avatar
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    From other posts I have seen on the forum, if you do decide to have your partner become a member of the cc, PLEASE make sure that everything is in an agreement from the start.

    Things like :
    Members salary for the work they do ( like employees get paid, so to working members )
    Responsibilities - what's expected of each partner.
    If someone doesn't deliver or pull their weight, what's the 'punishment'.
    Distribution / re-investment of remaining profits after payment of salaries ( including members salaries ). All salaries are an expense item, and profit is calculated after expenses. So if you have 2 members but only one actually working for the cc, then that one should be entitled to a salary, and thereafter the profits can be distributed.
    Dispute resolution : what if a partner becomes unhappy. Can he sell his shares to anyone ? Can you ? do you have to give the other partner first option ? if so, how is the share valued.

    DO NOT think that you don't need all this documented and agreed upon before you start -- there are enough posts all over the forum about cc members sitting with problems with partners and they can't solve it - none of them considered the pit-falls when they started out - then it was all just stars in the eyes and "it won't happen to us" attitude.

    Maybe one of the legal experts on the forum would offer a source for a standard members agreement as a starting point to build up from.
    Watching the ships passing by.

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    Inprogress (25-Sep-10)

  3. #2
    Full Member Inprogress's Avatar
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    Thanks for the advice and input. Will keep this thread watching and scour the forum when I have time to do so. Luckily the partnership isn't pressing at the moment, future options to consider.

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