Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
May I ask whether there was any formal loan agreement or whether the agreement was a simple verbal agreement or otherwise please?
it was just a Verbal agreement
Thanks. What were the terms of the agreement - was interest payable, and after how long was the money to be repaid? Are there any emails in support or were terms just agreed verbally?
No terms and conditions were agreed, no time limit was given on repayment this person was going to work with the company but then disappeared for a few months, I have now received and email asking for a meeting to talk about returning the money and they want to know the value of my Company.
Thanks. Finally are you in a position to repay the money (with interest if demanded) in full?
Yes, but I would like to be assured that he can hold no claims on my Company.
Thanks. Unless you have entered into a formal agreement with him giving him a share in your company in return for the money loaned, which if course is perfectly possible. However on the basis that no such agreement was entered into then he would have no claim to an equity share in your company...
You will wish to consider emailing or writing to him to advise that you are in a position to repay the loan and propose a figure you consider to be what was agreed (presumably the capital sum together with or without interest) and request his confirmation that he agrees the figure in full and final settlement of monies due to him. You can consider pointing out that the value of your company has no bearing on the matter of his loan.
If the loan was made to your ltd company as opposed to you take care that all correspondence is on behalf of your company as director and not you personally as in these circumstances you do not want to admit personal liability for the loan to your company.
We have never entered any formal agreement there was demands at the begining but I never carried them out hence why he disappeared.
If he intends to claim something further than the return of the capital the burden of proof is upon him to show this. He will not be able to claim a share in the company unless he has substantive evidence to show that was agreed - it is unlikely anything less than something in writing would suffice for this which is from what you say not in existence. You may wish to consdier paying a fair rate of interest on the monies but this is a matter for you unless again he can show that interest was agreed
Is there anything above I can clarify for you?
Thank you for your help.
A pleasure. If I can assist any further as the situation develops please do no hesitate to let me know.
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