removing a useless partner

[cibachfi]

I purchased a business with my brother, paid the money and although h%e did not contribute financially established the business with him as a 50% shareholder. We now have mounting debts and property on market. Howeveer I am paying for mortgage with him stating that I must remember he is a 50% owner of the company. He pays nothing towards the mortgage or any other debts and has simply walked away. I have to pay mortgage as my house is secured on loan. He forgets that he is 50 lia ble for debts as well as profit. Anyway I want to restart the business as I am paying all costs but am nhot happy to carry on and work hard for him to reap the rewards. Can I get him removed as a director if he is not working in the business (he now has a full time paid job) and he is not contributing to any costs.

 

[KAC]

Sorry but not completely clear. Is the business a limited company or a partnership? In whose name is the property and mortgage ?

 

[cibachfi]

the property is in both our names and the morgage. It is a bit weird because we applied for a mortgage in both our names and then set up a ltd co. Think the solicitors should have picked up on this maybe as we did tell them

 

[paulears]

The mortgage was in joint names as individuals or a business? You gave him 50% of a business he's not involved in, and doesn't contribute to? Was this 50% shareholding 50% of the Ltd Company (as in shares) or 50% of what? If you put all the money in, was his 50% intended to be 50% of the profits - Is this written down anywhere, what benefits has he actually had, as 50% of nothing is quite different.

 

[STDFR33]

What does the business do?

What is the purpose of the property if it sits outside of the company?