Owning Two businesses selling same Services

[toastie]

I am a 50/50 owner of a business that provides a Service. It has recurring revenues. My partner no longer wishes to play an active role due to other interests. Can I start another business and sell exactly the same Service and be employed by both businesses?

 

[Scalloway]

I take it the existing business is a limited company. You can start a new business yourself if your co-owner agrees.

 

[Mark T Jones]

Are you a director of the company? If so you need to look at directors’ responsibilities.

 

[ComPropSolicitor]

This certainly is a valid point. Doing what you are proposing if you are could be seen to be doing something that wasn't the best interests of the Company or the shareholders. Depends who these people are but, the partner, could try and establish an argument that you weren't acting in the best interests of the Company. This could have ramifications for you.

The best option surely would be to get the Company valued and then try and buy his shares in the business from him legally and above board?

If you have questions in this respect from a legal point of view would suggest dropping me a PM

 

[toastie]

Hi, thanks all for the replies. I wouldn't seek to transfer any of the current contracts, NewCo would start with new business sales only. I would like to continue in my role in OldCo to ensure those contracts are properly serviced and staff treated fairly while seeking to agree terms of the sale of OldCo with the other director. The value of the company in simple terms would be the value of the contracts plus cash would it not?