Please help - Im really desperate

[markmanor]

I am a 50% major shareholder in a company. The past 3 years have been a disaster for me personally due to a terrible relationship break up and secondly an illness to my son. As a result my financial performance in the comapny has been awful. I am the first to admit that. I do feel however that I have contributed in other ways.

Now my business partner has come to me with financial figures comparing what he has brought into the company compared with me and of course there is no comparison. As a result he now wishes to reduce my salary and secondly, and more worryingly reduce my share in the company by 30% to 20%, leaving him with 80% of the company.

What advice can you give me in terms of ideas / proposals I could give to him. He has stated that he is prepared to give me my 30% back over a period of 3 years but I genuinly feel like this is a hostile take over. What could be the outcome if he ownes 80% of the company, where do I or could I stand legally. I am really worried what could happen. Please could someone give me advice

regards
Mark

 

[internetspaceships]

I am a 50% major shareholder in a company. The past 3 years have been a disaster for me personally due to a terrible relationship break up and secondly an illness to my son. As a result my financial performance in the comapny has been awful. I am the first to admit that. I do feel however that I have contributed in other ways.

Now my business partner has come to me with financial figures comparing what he has brought into the company compared with me and of course there is no comparison. As a result he now wishes to reduce my salary and secondly, and more worryingly reduce my share in the company by 30% to 20%, leaving him with 80% of the company.

What advice can you give me in terms of ideas / proposals I could give to him. He has stated that he is prepared to give me my 30% back over a period of 3 years but I genuinly feel like this is a hostile take over. What could be the outcome if he ownes 80% of the company, where do I or could I stand legally. I am really worried what could happen. Please could someone give me advice

regards
Mark

Firstly if you are a 50% shareholder he cannot do anything by force. Period.

Seondly do you have a shareholders agreement that was drawn up when you formed the company together?

Thirdly if he takes 80% of the company then he has complete control at a legal level.

Finally, speak to a good solicitor on this one and do NOT give him your shares until you are fully aware of exactly what you're giving up.

You're supposed to be partners. If you have slacked for a number of reasons either in or outside your control then surely it's a matter for discussion unless your relationship has broken down terribly. Can you throw everythign into your work for three months? Ask him to give you that long do prove you can do what you used to?

Is the company profitable? If so, you certainly need to be asking these questions of a retained solicitor before taking another step.

 

[Robert Humphreys]

maybe he has made the figures look worse than they are to force you to give him control..........it is possible.........check the figures

 

[Tej]

IMO

Forget about Solicitors etc at this stage.

A heart to heart chat ,, to sort it out would be best.

You have admitted to failings for 3 years.. and presumably you have been carried ( if thats right) for that length of time. Point out what you have contributed too.

I am sure you will come to an amicable arrangement.... without the extra cost, which you can ill afford.

Its all down to common sense.

Good luck!

 

[internetspaceships]

Good point Tej!

Use my post as a fallback position and remember, whatever he says, don't be passing shares over at this point.

 

[Big Pete]

IMO

Forget about Solicitors etc at this stage.

A heart to heart chat ,, to sort it out would be best.

You have admitted to failings for 3 years.. and presumably you have been carried ( if thats right) for that length of time. Point out what you have contributed too.

I am sure you will come to an amicable arrangement.... without the extra cost, which you can ill afford.

Its all down to common sense.

Good luck!

Good adice here .. go with this option first ..

 

[markmanor]

I just wanted to thank those who responded. The advice was well recieved and much needed I promise.

I am attending a meeting on friday with my business partner and I am hoping to put my side across in a well presentable manner.

I have had a tough time of late but I feel quite envigorated to succeed with the business and it's my intention not to give up my share of the company.

To date I feel i have contributed to the company, even though the figures arent the best, but I have also shared half og the burded of running the business and only recently does it look like turning around. Secondly my business partner had avoided becoming a Director until recently which suggests to me that he was waiting for the business to turn around before fully commiting himself. He held his shares in his wife's name.

Would anyone have any other suggestions I could put across? It would really help.

Kind regards
Mark

 

[mhall]

Just don't give up your shares - you had 50% for a reason. Negotiate on salary all you like, but don't give your shares up and make sure that dividends are paid if they can be and that that payment includes you. You took the risk when the business started, and now it looks like growing he is getting greedy. It will be a test of the ethics of your fellow Director to see what he suggests.