One of the ways to solve this problem is to draw up an agreement on business cooperation and formalize its powers, as well as areas of responsibility of partners. We mentioned this in the first part of the publication. In other words, partners need to agree on which of them will make managerial decisions in operating activities. And also, determine the range of issues that require joint discussion and consensus of all participants. At the same time, it is also necessary to prescribe a mechanism for making decisions on key issues. For example, whether 100% consent of all partners is necessary or a simple majority of votes is enough, whether there is a “veto” right of individual partners, etc. But such a mechanism more or less works if there are 3 or more owners in the company, their shares in the business are approximately equal, and most importantly, all business partners harmoniously coincide in their qualities, are ready for constructive dialogue and problem solving. But in a situation where there are only 2 business partners with a 50% split by 50%, a big problem arises if no one wants to concede.
Hired manager
Another option for resolving the issue of powers in the operational management of the company can be the appointment of a hired top manager to the position of director or manager (as you like). In the event that business owners are ready to give up part of their powers to a third outsider, this option can be a compromise when the co-owners cannot resolve the issue of primacy among themselves.
Comments