Question 1: ) If you were advising Alan, Belinda and Chris, at this point, what corporate vehicle would you suggest they use for this business? Why? (Please include any reasons you think relevant, but these reasons should include “legal” reasons.) Are there any specific details about that vehicle or how it is set up that you think they should consider?
Question 2: ) Alan feels that he has been let down by Belinda and Chris, respectively, in these two incidents. Assume that there is equal ownership of this firm (regardless of the vehicle you have chosen) among Chris, Belinda and Alan. How could a shareholder agreement have helped Alan (or have protected him) in these scenarios? Please identify two SHA techniques and explain how they would have been beneficial to Alan.
I would suggest Limited Liability Company for Alan, Belinda and Chris because of several factors, and primarily because they are entering into service based industry and as per the business, none of the three involved parties are required to invest capital from their pockets. So taxation is the primary focus area as per the long term plan and
