You have a partner? Remember to include The Mexican Shootout

In the Articles of Association of a company, both sides agree to insert a clause that governs serious disputes. If the dispute cannot be resolved, then the following takes place:

Each side in the dispute, each shareholder who wishes to participate, considers carefully what they would be willing to pay for the whole company. It doesn’t matter how many shares they own, but they must have access to the sum they have indicated, less the worth of their own shares valued on an equal basis.

The parties then go to a neutral layer or professional on a certain day and bring with them a sealed envelope with nothing inside it but their estimate of the company’s entire worth. Or, at the least, what they are willing to pay in total for the company.

The layer then opens the envelopes. Whoever has bid the highest amount is now the owner of the company and must pay the losing side for their shares, based on the winner’s valuation.

If I was the majority shareholder, I would never permit the shootout to appear in the Articles of Association. If I was a minority shareholder, I might not invest without it being there.

-How to get rich, p.178