Employee want to become director - I have reservations

mids_biz_guy · Dec 20, 2015

A member of my company who was previously CIS sub contractor, went on payroll to aid him getting a mortgage (hes just moved!) wants to join the business as a director. He has promised to do more to grow the business / take pressure of me etc to show his commitment. It happens for a few weeks and then fizzles out, got him company phone, business cards, e-mail etc which never get used. I mentioned he would have to invest and his believe is i have put very little in financially (only 10-15k - i think this is a considerable amount) i have also worked every hour god sends for many years as I am sure many of you have, missing out on the children a lot (my middle one thinks I dont love her at times!)
Hes taken company money to fund his house move (£800) which I just found out about, I am not the best at confrontation but am now at the point where I am not having the mickey taken out of me and feel my options are (he is the only trades person i have for his skill so am actively recruiting)

1. tell him to step up and put money on the table (have spoken a good few times about stepping up, it happens to keep my sweet and then fizzles out

2. Get rid of him totally

3. tell him directorship is not going to happen and he can stay as employee or ideally CIS sub-contractor

this situation is eating me up and the wife is cross that its all thats on my mind and im drinking more to relax

look forward to your help - i love my business and what i do but god this is driving me nuts

thanks

john1989 · Dec 20, 2015

This sounds like somebody that shouldn't be in your business and somebody you already feel shouldn't be in your business.

Stop drinking. It will make your decisions skewed. You need a clear head.

Option 2 seems inevitable and better soon rather later!

Raw Rob · Dec 20, 2015

From reading that I can say definitely don't make him a director. Have a read of some of the threads this forum is full of about business relationships which don't work out. What you describe is not a good foundation for sharing your business with someone.

tony84 · Dec 20, 2015

He wants to become a director and is saying he is putting nothing in because you havnt...yeaaa he sounds like a right catch. An employee dictating the terms of becoming a director, I have ehard it all now.

I think I would go down the route of dismissal for taking company money and have done with it.

If your in business you need to toughen up. Your going to have employees, customers, suppliers where things do not go to plan. Everyone wants to be nice but you cant be like that all the time.

Vectis · Dec 21, 2015

mids_biz_guy said:
...Hes taken company money to fund his house move (£800) which I just found out about...

Are you saying he's stolen this, if not I don't understand what you mean that he's taken £800 of company money which you didn't know about?

Why are you even contemplating making him a director - just because he asked?

Sort out the missing money situation first, then get rid of him.

BigTree · Dec 21, 2015

Sounds like you need to tighten up on how much access this person has. How did he get access to the £800?

This is your business and your stake and investment in it is far greater than the initial money put in. You should not be dictated to by an employee and should get rid of him sharpish going by what you've stated. Definitely do not give him even more power and access by making him a director otherwise he'll be taking the whole company from you in a year or two!

obscure · Dec 21, 2015

So the guy failed to step up to the plate when given the chance (that he requested) and in addition took £800 without your knowledge.... and yet you can't decide what to do with him and are actually considering the possibility of making him a Director?????

Firstly you need to get rid of this guy (after getting your £800) back.
Second you need to find someone who is capable of running a company and make them a Director.

MBE1 · Dec 21, 2015

Just to echo the above sentiments, if he has taken money without your knowledge or consent, then I don't see how you can ever trust him, imagine if he had access to serious funds.

Leopards do not change their spots.

LawHound · Dec 21, 2015

Totally agree with the comments made above, plus you need to get a grip on the business finances so he is not able to access funds until you have a clear plan to remove him. A nightmare situation by anyone's standards.

Root 66 Woodshop · Dec 22, 2015

Personally, I think it's irrelevant as to whether you get your money back or not. The guy's clearly a knob - tell him to leave with immediate effect - if he refuses inform him that you'll contact the police with regards to the theft of £800 - get him out of the business and more importantly out of your life, these are your most important things to do on the list.

MOIC · Dec 22, 2015

mids_biz_guy said:
(he is the only trades person i have for his skill so am actively recruiting)

Get a replacement to cover his work.

Then, Option 2.

The sooner, the better.

You will feel much better for it.

Enjoy Christmas first and act as soon as you return.

Ensure there is no way for him to access any more funds.

When departing, do it amicably, but firmly and on your terms.

Gecko001 · Dec 22, 2015

I do not understand the situation with regards the £800. It looks like an "unauthorised loan" at best and theft at worst. Either way get rid of this guy. You will probably never see your £800 again, but it might be the best £800 you ever spent!

Root 66 Woodshop · Dec 22, 2015

(he is the only trades person i have for his skill so am actively recruiting)

What skill is it exactly?

john1989 · Dec 22, 2015

Haunted Worlds said:
What skill is it exactly?

Processing bank payments ;-)

Root 66 Woodshop · Dec 22, 2015

Karimbo · Dec 25, 2015

Gecko001 said:
I do not understand the situation with regards the £800. It looks like an "unauthorised loan" at best and theft at worst. Either way get rid of this guy. You will probably never see your £800 again, but it might be the best £800 you ever spent!

i was watching a tv program about a husband and wife construction firm who hired this lady to do all the book keepng and finance. the buisness needed lots and lots of finance work to do all the job costing, procurement etc.

the lady worked for the husband and wife director team for several years and was almost like an extension of their family. the husband got cancer and went in for long term treatment and the wife was also off work from depression. the employee fleeced the company and went on a lavish spending spree. the owers only found out after a 50k vat bill was accumulated and there was only 10k in the bank!!

you have someone who is a massive liability to your business and thank god it's only £800 worth of damages now. fire him immediately.

alasdair1982 · Dec 30, 2015

Stop stressing about this, It is your business not his.

Why did an employee take £800 from your business? How did this happen? If he took it without your knowledge then this is theft. Sack him - no exceptions. If he took money without asking etc then why do you think you can trust him as a partner.

makeusvisible · Dec 30, 2015

I cannot even imagine why you are even considering his request. From the sounds of it, this thread should be entitled "should I let this member of staff go".

You have mentioned he is unreliable, possibly untrustworthy, has a poor work ethic, and isn't focused. I think you answered your own question.

JEREMY HAWKE · Dec 31, 2015

I would tell him to @@@@ off I would never tolerate the BS and drama that you lot entertain on here
If you dont want to tell him yourself some of us could come up and tell him for you We are all here to help

Alan · Dec 31, 2015

As above ^

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Employee want to become director - I have reservations

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