What to keep in mind
Differentiate routine from major decisions, provide negotiation steps and, if needed, valuation-based buyout or exit mechanisms suited to the SA or SRL.
Poorly drafted exits may reward opportunistic behavior or produce unfair prices.
Distinctions often confused
Equal equity does not always require identical executive responsibilities, subject to mandatory law.
Frequently asked questions
Can deadlock between two shareholders be prevented completely?
No arrangement eliminates disagreement, but sound procedures can greatly reduce its effects.
Would appointing a neutral manager help?
Possibly, provided authority, accountability and replacement rules are clear.
Informational content. It is not a substitute for professional advice.