Equity or option ?

[DSLiverpool]

I've been asked for advice on this scenario and it's a hard call, so as ever I'm asking PH.
In a 50 / 50 partnership what's more important having 50% or having first option on your partners share (at agreed average of 2 independent valuation) and owning 40% ?

[anonymous-user]

What protects your interests in the decision making process on company direction whilst you are a minority shareholder?

Why can't you have both?

[DSLiverpool]

Personally I can't see much difference in 50 or 40 % as long as it's over 30%

[Doofus]

If you had 50%, then the other partner couldn't sell his share without your vote so, in effect, you'd still have first call.

(Shareholders' / Partners' agreement dependent, of course)