business corporate-law india shareholders
Question regarding share of profit and loss in LLP
<p><strong>A</strong> started an online business (India) on his own. Now he wants <strong>B</strong> and <strong>C</strong> as partners to register an LLP. But A wants to retain 20% of share (he calls it founder's share) aside without any liability of loss. From remaining 80% A, B &amp; C will hold 30%, 30% and 20% respectively for their partnership, but we have to share the entire 100% loss in the ratio of this partnership. Now the situation stands as:
<strong>Share of Profit</strong>: A:B:C = 50 : 30 : 20
<strong>Share of loss</strong>  : A:B:C = 37.5 : 37.5 : 25
Moreover, A claims, if we need to add a partner, our existing shares will go down in the ratio of this partnership, leaving that 20% founder's share untouched. 
Now the question is: Is all this legally valid and fair enough? Is it fine for us (B and C) to join this?</p>

<p>Yes, this is a valid deal as per the Indian law, though is not necessarily fair. We have removed the 'founder share' from the deal and moved to a simpler deal with a share ratio of 50:30:20. The founder, A, is already getting value for his contribution in the form of the largest portion of share, so there is no need to allow additional benefits. </p>
