I know a lot of you have experience in this so I want to run it by you.... I have the fortunate situation of two investors who are competing to invest in a project of mine.
They both (independently) want to invest and want a 55% share in my business which would give them control.
What would be the situation if I allowed them both to invest the same sum and gave them 40% each of the share capital and I retained 20%? Then who has control and how are decisions within the entity handled?
GUY1: 40% GUY2: 40% ME: 20%
Does this mean that only if GUY1 and GUY2 have agreement then the motion is carried? What if GUY1 and ME have agreement on something, is it sufficient to carry the motion (at its 60% shares owned by us both)?
however it would be much simpler to operate in the real world if you just sold them both equal sized blocks of non voting shares ..
You really do need to talk a lawyer specialised in company formations in your jurisdiction though as previously suggested ..it sounds like you are anticipating specific friction ..before you begin ..which is not a good basis for any joint undertaking ..
BTW..If the investors are family ..then dont ..( loans maybe ..even so best avoided..voting stock ..no )..now go see a lawyer .