Alan and Bob each subscribe for class A and B common shares respectively of Deadlock for nominal consideration. Interposing Partnerco protects Deadlock's other assets from partnership liabilities. Bob resigns as an officer and director of Alco, and the two release each other from any liabilities on projects in which they are no longer active. Each individual controls the management, financing, and disposition of his targeted properties. All other decisions of Deadlock require the written consent of both individuals, and each family has equal representation on the board of directors.
All cheques require a signature of a member of each family.
Alan may cause Deadlock to pledge on a non-recourse basis the Alco pref shares, and Bob can do so for Partnerco prefs. It is essential that Deadlock incur no debt. Class A and B common shares may provide some flexibility for adjustments.