How to be safe when investing in a friend's business

QUESTION: Dear Cathy, My friend has been working on software known as ujanja which he has now completed. To sell the software he wishes to register a new business. He has requested me to partner with him as an investor, by investing Sh1 million in return for a 40 percent stake in the new business.

He also presented me with the cash projections and I am confident that this is a good investment. I am only worried about protecting my interest in the business. What legal advice would you give me as an investor?

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