Leaving a limited company

[Sazmag]

I set up a business 20 years ago with business partner which has been reasonably successful, all business has been split 50/50. Last year she announced that a client who was a family friend who we had done some business for was going to now result in her getting 100%of that business and no longer splitting stuff from this client 50/50 due to the market being quiet etc! The business has struggled this last year with the existing clients we have had for many years. I have decided that the business is very soon going to be costing more than we are making on the shared business, she is still doing well on the client she decided was now hers so isn’t on the same page!! financially I’m not earning enough for it to be worth while. I have told her that I am looking to get another pt role as need more money i would prefer to dissolve business pay of any debt which isn’t much and share remaining money she wants to remain doing the business should I sign everything over to her. I would get half of the money in the savings account but what about money in current account money coming in from clients that I have been involved with as feel she would be left with several clients that we have both developed over 20 years which are quiet at the moment but could get busy again?

 

[FreddyG]

Is there some way you could translate that into English?

 

[Sazmag]

Basically I want to dissolve limited company as business not making enough money. Business partner wants to keep business, if he keeps business what is the implication on myself. Business is still making some money although costs are eating into the profit reducing what we take home. Do I just hand over or is there better options as I would like to find another job with a salary?

 

[eteb3]

Any personal guarantees will almost certainly survive your exit: you’ll want to deal with them or you’ll have liability with no control.

The caddish thing is to resign as a director and keep your shares. Assuming you’re both shareholders and directors.

The cleanest break is transfer all of your shares to him.

You can have anything in between that he’ll agree to.

The salaried job is neither here nor there, it seems to me, unless you want a tapered exit while you retrain/network etc to secure one.

 

[fisicx]

Basically I want to dissolve limited company as business not making enough money. Business partner wants to keep business, if he keeps business what is the implication on myself. Business is still making some money although costs are eating into the profit reducing what we take home. Do I just hand over or is there better options as I would like to find another job with a salary?

Sell them your 50% and walk away. You can't liquidate unless your partner agrees.

 

[Clinton]

The obvious first step is to talk with a solicitor (or at least your accountant).

This is more complicated than you think and formal advice is required. Yes, you might have to pay for it but that's normal in these situations!

 

[Paul Norman]

Assuming there is no shareholders agreement, or directors contracts, that sets out exactly what should happen in the event one of you wants out, or one of you changes the game as has happened here, then it is a negotiation between the two of you.

If that is not going to work, then you need the involvement of a decent professional - accountant or legal bod.

But moving on - done properly - does sound like the right thing to do here.

 

[DontAsk]

I set up a business 20 years ago with business partner which has been reasonably successful, all business has been split 50/50. Last year she announced that a client who was a family friend who we had done some business for was going to now result in her getting 100%of that business and no longer splitting stuff from this client 50/50 due to the market being quiet etc!

It doesn't make sense to me.

Do you mean she's taking 100% of the work from this client, or taking 100% of the profit? If the latter, how does she do that?

How is the business structured? Are you equal shareholders? Are you both directors?

How were you sharing 50/50 previously? Through salary or dividends, or...?

As already mentioned, you could resign as director but keep your shares. If you are equal shareholders (same share class, not just 50% allocation) then you are still entitled to 50% of the dividends, but she might just increase her salary and declare no profit (and no dividends).

 

[Gecko001]

It seems that this one client that your business partner deals with keeps the company afloat, and that means that you feel that you are surplus to requirements. But, are you?

 

[Lisa Thomas]

Basically I want to dissolve limited company as business not making enough money. Business partner wants to keep business, if he keeps business what is the implication on myself. Business is still making some money although costs are eating into the profit reducing what we take home. Do I just hand over or is there better options as I would like to find another job with a salary?

So let him keep the business and resign as a director. You can still keep your shares...

 

[MikeJ]

OP hasn't been back since 9th April...

 

[Clinton]

That's the case with a lot of new members.

Either they don't bother to take the time and trouble to explain their case and question properly, or ...

They don't get the fluffy, easy, quick solution they wanted so they leave.

Half the frigging time, like in this case, they are here just to vent / pour their hearts out / get some sympathy.

Time for a forum name change: UK Business Forums and Emotional Support Services.