[Advice Needed] Shareholding in a Pte Ltd company

[Sammyboy RSS Feed]

An honorable member of the Coffee Shop Has Just Posted the Following:

A couple of professors and another friend of theirs set up a company two years ago to provide tuition center services in Indonesia.

Recently, they wanted me to join their company. They offered me a directorship and 20% shareholding.

When I accepted their offer, I received a letter signed by the majority shareholder (who holds 60% stake) detailing that my stake in the company and the scope of my corporate responsibility. The format of the letter is like this:

XXX Company provides tuition services in Indonesia.
The address of the company is XXXYYY.
The shareholders are:
ABC: 60%
DEF: 10%
Me: 20%
GHI: 10%

The duties of Mr "Me" are as follows:
(a), (b), (c)

Signed,
Mr ABC

[Corporate stamp and logo - not photocopied]

[Company Incorporation address and Registration]

The letter seems quite flippant. Is it sufficient to guarantee that I really have a 20% stake in the company?


Click here to view the whole thread at www.sammyboy.com.