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Your liability is limited to the value of the shares. If you are paying £5000 for 2.5%, that is your total liability.
If he is worried about the company going down the tubes and you not getting your money back, he could always give you a charge over the company’s assets because that really is worth something whereas if the company goes down the tubes, you get nothing.
It depends whether your concern is liability if it all goes pear-shaped or whether your concern is losing your £5000.
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If you buy shares in a company and you have paid £5000 for the shares, and the company goes bust, you lose your £5000. That is your total liability, the value of the shares. You would not have to find another £5000
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If you don’t take the shares and just make the company a loan and the company goes bust, you lose your loan because you are an unsecured creditor unless the company grants you security over its assets.
There is no reason not to take the shares because you have no more liability than your first £5000 regardless but it does give you a piece of the company if ever it takes often becomes extremely successful and valuable