ABSTRACT
Laura, a talented designer, and her husband, Bernard, are running a small business engaged in the printing and selling of silk scarves and ties. They are seeking to expand the business and have persuaded Laura’s parents to provide funds for expansion. Laura’s parents do not wish to participate in the day to day running of the business, nor do they need an income from their investment, but they would like to be consulted on major matters of policy and to be able to recover their capital in the future. Laura and Bernard wish to retain control of the business but want to give Laura’s brother, Mark, who works for them, greater involvement in the business. Laura and Bernard have decided to form a company in which they will own the majority of shares and be directors. They seek your advice about how to structure the company and to accommodate the wishes of Laura’s parents, Mark and themselves.
