Bonus impasse between company directors

Discussion in 'General Business Forum' started by BlueSky2019, Jul 13, 2019.

  1. Mr D

    Mr D UKBF Legend Free Member

    16,196 1,804
    Based on what his shadow chancellor has said the past couple of years, not so irrational.
    Minor things like removing corporate subsidies. State ownership of utilities. Taxation.

    Its impossible to say the director wanting to keep money in the business is wrong, they may be taking it to a bigger extreme than most but we do not know the business sufficient to make a judgement.

    OP, if working insane hours then the issue of processes, staffing etc need to be looked at. New business starting up or business in trouble then insane hours would probably be justifiable, doing so with a business that is apparently doing OK - needs looking at.
    More staff, more staff responsibility, more management, better processes for the work or whatever. So directors are not required to work so hard.
     
    Posted: Jul 14, 2019 By: Mr D Member since: Feb 12, 2017
    #21
  2. Mr D

    Mr D UKBF Legend Free Member

    16,196 1,804
    I thought it was directors deciding to have a dividend.
     
    Posted: Jul 14, 2019 By: Mr D Member since: Feb 12, 2017
    #22
  3. BlueSky2019

    BlueSky2019 UKBF Newcomer Free Member

    11 0
    You raise some really good points Mr D and I certainly don’t feel the business is run as efficiently as it could be.
    If they so wanted, who could they engage to gain some advice on how to make changes and make the business run better? Does such a thing exist?
     
    Posted: Jul 14, 2019 By: BlueSky2019 Member since: Jul 13, 2019
    #23
  4. Mr D

    Mr D UKBF Legend Free Member

    16,196 1,804
    For a bigger company I'd suggest getting a consultant in to look at time management, processes, staffing and so on.
    May find some other companies able to do some of that cheaper than paying consultants.

    May be worth just sitting down and figuring out what is essential for each director to do, what can be farmed to staff, even whether a couple of assistants could work.
    Reducing the directors load of non-director stuff may be beneficial to start with.
     
    Posted: Jul 14, 2019 By: Mr D Member since: Feb 12, 2017
    #24
  5. Financial-Modeller

    Financial-Modeller UKBF Regular Full Member

    371 105
    @BlueSky2019 you have had some excellent advice on calculating an amount that should be retained within the company to maintain prudency.

    The core issue seems to be that two decision-makers with equal decision-making rights hold opposing views about the company distributing profits.

    If they both appreciate that, the obvious solution is to both agree to point an independent adjudicator and to both agree in advance of the appointment to be bound by the outcome of that exercise. The company's accountant would seem a sensible choice, given that he/she will be familar with the company and the directors, so would need less time to prepare than someone unfamiliar with the situation.
     
    Posted: Jul 15, 2019 By: Financial-Modeller Member since: Jul 3, 2012
    #25
  6. Noah

    Noah UKBF Ace Free Member

    1,200 299
    Good advice in this thread.

    However, reading above quotes, I think your best option is getting out, because this looks like a broken business to me.

    As an alternative to fixing the specific problem, consider taking this opportunity - using the various tactics suggested here to value the business - to either get out while the going is good, or remove the other shareholders for a price that makes sense to you.
     
    Posted: Jul 15, 2019 By: Noah Member since: Sep 1, 2009
    #26
  7. Root 66 Woodshop

    Root 66 Woodshop UKBF Big Shot Free Member

    4,898 1,317
    Are the funds in the bank? Have you seen them? Has your other half seen them?
     
    Posted: Jul 15, 2019 By: Root 66 Woodshop Member since: Nov 22, 2011
    #27
  8. STDFR33

    STDFR33 UKBF Big Shot Free Member

    3,896 979
    Having some reserves is ideal. Having enough to ride out a storm for several months is ideal.


    However, what if you build up a sh1t load of reserves and Brexit does cripple the business? Continuing to throw reserves at a business doomed to failure because of Brexit (on any other external factor) is just stupid.


    Having a reasonable amount of reserbes is sensible. If you aren’t going to remunerate yourselves accordingly for the stress of running a business, what’s the point being in business?
     
    Posted: Jul 15, 2019 By: STDFR33 Member since: Aug 7, 2016
    #28
  9. The Byre

    The Byre UKBF Ace Free Member

    8,864 3,466
    First we get this -
    and this -
    But then we get this -
    So BOTH of them are nuts and are seeing snakes coming through the walls (figuratively speaking!)

    If we all worry about what MIGHT happen, then none of us will get any sleep - ever!

    1. There'll be no Brexit. Just look at the main Brexit protagonists and tell me that this motley collection of gibbering incompetents are capable of anything whatsoever - let alone something as complex and far-reaching as leaving the EU.

    2. If Corbyn were to get in (and that is one mighty IF!) he will be tempered by the usual constraints of office.

    Sit these two idiots down, give them each a beer and force them to watch several episodes of 'Yes Minister' and Yes Prime Minister' and then ask them quietly -

    "So who exactly do you think is actually running the country?"

    If that doesn't work, get together with the BP's wife and you two run the company instead of the men. Women are better at that sort of thing anyway - at least that's what my wife tells me!
     
    Posted: Jul 15, 2019 By: The Byre Member since: Aug 13, 2013
    #29
  10. Opinion87

    Opinion87 UKBF Regular Free Member

    259 50
    I never get tired of your posts @The Byre. Have you considered writing a book, or at least letting your wife ghost write one?
     
    Posted: Jul 15, 2019 By: Opinion87 Member since: Jul 1, 2015
    #30
  11. Mr D

    Mr D UKBF Legend Free Member

    16,196 1,804
    You know that, Sun readers preference apart, government is by individuals?
    Shadow Chancellor has some odd ideas that basically mean businesses would pay a lot more tax. Try 25% of turnover. Per year.
    Or could you see Corbyn's ex-girlfriend with a ministry?
     
    Posted: Jul 15, 2019 By: Mr D Member since: Feb 12, 2017
    #31
  12. HeadTeacher

    HeadTeacher UKBF Newcomer Free Member

    11 0
    It's hard to argue with caution. Unless you have an urgent need for funds might it be an idea to relax about it for a period of six months? The money isn't going anywhere. By then Brexit may have happened and its impact started to become clear. Dependent on sector Brexit, especially no-deal Brexit, is forecast to be quite punishing. If Brexit doesn't happen in six months then its probably never going to so continued hoarding would seem over cautious.
     
    Posted: Jul 25, 2019 By: HeadTeacher Member since: Jul 9, 2019
    #32