POSTED BY August 6, 2013 10:35 pm ONE COMMENTON
My father passed away in April this year. He was looking after a business which has 3 partners (our share is 33.3%) including him. The business is running ok now but its declining. So in next 5-10 years it may be closed. My father’s capital is much more than the other 2 partners. Me and my brother are working so we won’t be doing the business. Now we have two options,
1) The other two partners are offering 5% as sleeping/silent partner for us to be in the business. Is the right percentage share to continue to be in the business?
2) They are offering to return the existing capital in installment and then we can move out of the business without any percentage share or profit/loss share.
So my question is to what percentage share we can continue to be in the business as a sleeping/silent partner? What are advantage and disadvantage of that? or shall we take out our capital and get out of the business?
Thanks in advance.