help and advice

[Anonymous]

:shock: :? :oops:
Hi sunday people
just found forums ,looking for info about problem bussiness partner.

we have a seal distibution company which was established 10+ years ago
employing 6. 2 years ago he decided at 2006 retirement was for him, this was bad timing as we had just had to factor our debts, his actions nearly closed the company, but a compromise was agreed , i now own 70% of he shares bought with dividends and savings.
may 2006 he will semi retire december 2006 full retire.
My problem is at this time 60k will be required to purchase balance of shares, i have agreed to cover this over 2-3 years by using a company buy back and providing monthly payments, unfortunately he has rejected this offer unless i will provide personnal and legal guarantees.
As i already have my house as surity for the factor company i have no other assets as my home is already highly mortgaged.
i am a design engineer who has 3 months ago had to take on the mantle of accounts, talk about bloody deep end.
Any advice or suggestions would be appreciated

[Jayne]

Hi,

Welcome to the forum :D

I would go to see a solicitor about this, bit of a crap deal you ended up with. Most solicitors give 30 mins free advice, i'd give some of them a ring and find one.

Best Wishes

Jayne

[Jayne]

Hi again,

Just looked at your profile...what is bodyboarding?

(is it rude? :lol: )

Jayne

[Alpha]

Bob

I suppose the questions that come to mind are

Do you have to buy out his shares? and if you do not what are the consequences?

Would you value 30% of the shares in the company at £60k.

On an asset basis it doesnt sound worth that much to me. (Obviously there may be more value in going concern basis but without a detailed look at the records i couldn't hazzard a guess at that.)

[easy]

I agree with all of the above. What happens if you just refuse to buy him out? Could he easily sell to someone else, in which case you are still the majority shareholder.

He could sue you for the money, but if its not there, then this would just make you bankrupt and probably wreck the company, in which case his shares would be worth zip.

Get a good commercial lawyer - I'm sure there is a way forward for you.

And by the way, welcome to the forum!