Hello , How are you doing today?

So over the weekend, I learned of a very sad event.

It is sad because the ugly incident could have been avoided if the people involved had been appropriately advised.

When I say that business owners should always insist on documentation, especially the shareholder's Agreement, even if you are entering into business with your wife …E get why!

So a man (let’s call him Chief) registered a pharmaceutical company as far back as the 80s together with his wife and a pharmacist.

When his son, Ade (not his real name) finished school as a pharmacist, the company was restructured, and the first pharmacist who doubled as a shareholder and director was removed and replaced with Ade who is now qualified and ready to run things.

Ade who got married to his university sweetheart, Bisola (not her real name) who was also a pharmacist.

She controlled 60% of the shares of the company.

A couple of months after the restructuring, Barr. Ikpama advised that a non-pharmacist cannot be a member (shareholder) of a pharmaceutical Company.

On the advice of Barr. Ikpama, Chief gave the entire 40% which he controlled as a shareholder to Bisola, Ade’s wife.

Thus making Ade and Bisola, the beneficial owners of the Company...

Even though technically, Chief was still the owner of the business.

Ade and Bisola soon started to have issues in their marriage.

A marriage of 10 years came crumbling down.

A divorce proceeding stares them in the face.

Fast forward to a couple of months later, Bisola is demanding 100 million Naira as her compensation as a shareholder in the company.

Chief is very furious!

"How can Bisola demand for NGN100,000,000 for a business that she never contributed a dime to...

Not even her expertise.

Where was she when built the company in the 80s?" chief fumed.

He had only used her because Barr. Ikpama had advised that he needed to have not less than two pharmacists as shareholders.

And that since he was not a pharmacist, he was not eligible to be a shareholder.

Chief is looking to now remove Bisola as a shareholder and a director from the company without letting her know as communication line has been closed between them and dialogue is almost impossible.

Now that is another bad move that will backfire sooner than later.

No disrespect to my colleagues, but the truth is that it is not every lawyer should advise you on the legal aspects of your business.

If I had a toothache I wouldn’t go to the optician when I can go to the dentist.

There are some mistakes you will make in your business and the consequences would linger.

Don’t be like Chief, don’t wait till things go bad before you involve a lawyer in your business.

As a serious business owner, you should invest in the legal aspect of your business early enough...

Hire the right business lawyer...

I know you are concerned about fees but at least make the effort.

When it comes to the legal aspects of your business, you cannot leave it to chance...

you are better off being careful than sorry.

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