Advice Please On Business

[poundcottage]

I will try to make this brief, but please can someone give me advice.

My partner and I started a business about 6 years ago, we were both employed at the time by the same company,I was put down as sole shareholder as my partner did not want our company to know that he had started a business. After about 6 months I left my employment to take up full time work in our own company, my partner left about 6 months later. After about a year my partner became a shareholder and we held 50/50.

Things were fine at first but then about 2 years ago things started to go wrong due to bad pricing of services and the recession,we tried desparately to sort things out and with the help of one of our major clients who knew they were being undercharged they agreed that we should double our prices and things started to look up, it was to late though and we called in professional advice and were advised to go into liquidation and restart a new company. In the meantime my partner had bought a new company a few months earlier with a similar name in case this happened.

We started trading the new company in Feb of last year and things are going brilliantly I am Director and Co Secretary but (as naive as this may seem) didn't realise I was not a shareholder. I have worked my socks off these last 6 years, have had the phones transferred to my mobile 24/7 for 6 years(as we have a 24hr callout line), are going through the process of a court case next week, to do with our new company name being to similar to our old one, and now my partner wants to end our relationship (we have lived togther for 8 years) and says that the company is his.

What do I do? I am losing my home as stupidly when we bought our house I had a slight credit problem and told my partner to put the mortgage in his name and add me later (which he has never done).

So very soon, no house, no company and probably no job.

Please can I have some advice.

 

[jeffbearcroft]

Go see a solicitor. Some give an initial consultation free.

I'm afrraid it doesn't sound good.

Jeff Bearcroft

 

[poundcottage]

Thanks Jeff I will do that, but I feel such a mug.

 

[AlanGNW]

Sounds like you need a good family lawyer.

Whereabouts are you geographically?

 

[poundcottage]

Hi Ashford in Kent.

 

[florenceij]

I am sorry to hear this you need a good lawyer but nothing can beat having some hard solid proof. I suggest you start gathering all the documents that can help with the case and your lawyer should be able to advise you.

I am sure there are some in this forum.

 

[Bri]

Dont worry this is quite a common scenario, youre not alone. I'm sorry that your predicament has led to the breakdown of your business and your relationship. See the thread about working with families.

Sometimes, this may have been the best thing to happen and you will rise from the ashes stronger and wiser and your business will have the greatest success.

Until then, heed the advice already given, seek out a lawyer sharpish.

 

[efficiencycoach]

Firstly, bad luck... Really sorry to hear about your predictament. As previous posts gave said, seek legal advice and get as much documentation together to prove your case as physically possible.

 

[George76]

I agree with the other responses, get on to your lawyer. As you've been living together there may be a glimer of hope but just get that legal advice and I hope they are able to prove through all that hard work you have done you get something back.

It does sound like a lot of mistakes have been made from the first business pricing, not demanding your name on the house or business. It so important always to stake your claim with everything you do no matter what.
You've let others have control over the most important things to do with your finances. In the future just make sure that you get everything in writing as someone will always try and take what is yours especially in busines.

I really hope that things improve for you, it is such a hard situation to be in, just learn that if it doesn't say you did it in law, there is no guarentee you did it in the eyes of the law.

 

[VeryMark]

I do not normally post in areas outside my own expertise, however, I think it is possible that matters may be quite as bad as they sound.

Firstly, the courts may consider that you are entitled to a share of the property/company - but it depends on what can be proven as to the parties' intentions.

Secondly, you may very well be an employee of the new company legally and thus entitled to the protection of the law as such.

There may also be other factors in your favour, but on all of these points you need proper legal advice from a good solicitor - don't pick one out of Yellow Pages, ask your family/friends who they would recommend, and try to get one who will (a) give you a free appraisal upfront, and (b) then might be prepared to work on a no-win no-fee basis if your case is good enough - there is a Kent Law Society whose contact details are here, and your local Citizens Advice may be able to help.

I wish I could help more, but don't simply give up!

 

[poundcottage]

Thank you everyone, I will book to see a solicitor tomorrow and keep you updated.

 

[consultantUK]

If the fight is about >£20K
Take legal action yourself or use a consultant.
If £20K< use Lawyers

 

[deniser]

As far as the house is concerned, the courts will look at who paid the deposit and who paid the mortgage and take that into account in assessing a possible share for you.

The business looks to be more tricky especially as you are the company secretary with responsibility for the paperwork including the annual return. I think it will be difficult for you to argue that you didn't know you weren't a shareholder.

Good luck.