Biz Partner Transferring Shares To Another Ltd Co

[22s]

Hi all,

I would appreciate some advice on something I have no experience of, if possible.

One of my biz partners "Chris" owns 100% of Company A (ltd co). Chris, another biz partner and I each own 33.3% of Company B (also ltd co).

Chris wants to switch ownership of his Company B shares from himself to Company A (i.e. Company A, not Chris, will now own 33.3% of Company B). The reasoning behind this is that if Chris wants to sell Company A, it makes the business more valuable if it also owns the shares in Company B.

I'm concerned about this, not least because if Chris sells Company A, and therefore also sells 33.3% of Company B, we (presumably) lose the control of that share of Company B to the new owners.

Would you be reluctant to agree to such a movement of ownership, and why? Are my concerns valid or unfounded? Is there a way we can keep control of the company if Company A is sold whilst owning 33.3% of Company B (some sort of shift of voting rights triggered by the sale?).

Any thoughts on this would be welcome, as the situation is making me a little uncomfortable. Chris is a great business partner in every other way, and I'm sure he has no bad intentions, but it just smells a bit funny.

Thanks in advance,

22s