Am forming a Pvt.Ltd. company in India, with my partner. This is going to be a consulting company, primarily depending on our skill sets. Since it is going to be a private limited company with equal number of shares with us, we will end up sharing profits equally.
Being consultancy, we expect profits to be around 80% of revenue. How do we ensure that we both contribute whole heartedly in the business, and not just await 50% of profit because 50% of shares are owned by each. My worry is, if my partner decides to do something else for his revenue other than this company, he will still be able to claim 50% of profit, as he owns 50% of equity shares.
Need advance on how I can protect my interest.