How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Alex J. Your Own Question

Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3609
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

I set up a business with my former partner from inception to

Resolved Question:

I set up a business with my former partner from inception to the start of trading, a period of approx. 2 years, after which we split up as he was unfaithful to me and decided he no longer wanted to be involved with me in the business or otherwise. I did most of the set up, dealing with most issues from office building design to computer infrastructure. It was my contact that allowed the company to obtain Essex county council contracts. I did not and have not received any remuneration. I have documentary evidence in the form of emails to consultants, suppliers etc. I was verbally repeatedly promised a 50% shareholding once trading began, but this has not happened. Am I legally entitled to claim a 50% shareholding in the company?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi. Thank you for your question and welcome. My name is ***** ***** I will assist you. Do you have any emails promising the 50% shareholding? Did you ever vote on any company matters? Could you actually work in the company going forward if you did receive the shares? Kind regards AJ
Customer: replied 1 year ago.
I do not have any emails promising me the 50% shareholding only my handwritten notes on the company structure. Yes I did vote on all
Company matters although it is an owner managed business there was no official voting as such but I did make most decisions and yes I could work in the company going forward, I am an accountant by profession.
Customer: replied 1 year ago.
I set up all the systems in the company and the paperwork
Customer: replied 1 year ago.
and was involved in the day to day running including staff training, recruitment, staff management, internal accounting and bookkeeping, payroll, year end accounting, customer facing etc.
Customer: replied 1 year ago.
I was forced out of the business last July 2015
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. To summarise, you were promised sweat equity (shares) in return for your contribution. Lets assume you cannot go back to the business, on that basis do you want a payment in lieu of your services or the value of the shares? Do you have any idea as to what this payment should be?
Customer: replied 1 year ago.
In all honesty I would want the shares promised me and not a payment in lieu. It took me two years to set up everything. The company has only been trading for 1 year, I have no idea of share value
Customer: replied 1 year ago.
Am I entitled to sue for the shares promised to me ?
Customer: replied 1 year ago.
if I did sue for the shares would I be successful with my claim?
Customer: replied 1 year ago.
I don't want to go back to the company but want the investment that was promised to me so I can claim dividends and share in profits
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Potentially you could sue for the shares, is the other party still 100% shareholder? The problem is if you owned 50% of the company you would have to take responsibility for the management of it otherwise the company would be deadlocked. Do you know whether the company is currently profitable? If you forced the issue and were given shares would the other party continue to work with you? Kind regards AJ
Customer: replied 1 year ago.
Hi yes the other party is still a 100% shareholder and the company is profitable. I would be happy for the other party to continue with the management of the business and only be involved in major decision making. I think the other party would have no choice but to work with me. They may not be happy with it but I'm sure would learn to live with it.
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. If they wont voluntarily give you the shares you will have to sue for them. As a starting point do you have evidence to show the time and effort you put into the business? Emails or times sheets etc? Kind regards AJ
Customer: replied 1 year ago.
Hi yes I have documentary information in the form of emails
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. If you wanted to sue for the shares then you would need to show:(i) It was agreed that you would get the shares as sweat equity;(ii) You actually did the work.Obviously you did not do the work for free - therefore if you can prove you actually did the set up work this could be grounds to claim the shares. When you initially wrote to the shareholder demanding the shares what response did you receive? Kind regards AJ
Customer: replied 1 year ago.
I haven't made any requests to the shareholder for the shares. The shares were promised to me verbally but I do not have a formal written agreement to this end. I do have documentary evidence in the form of emails that I set the company up. Would this be enough to substantiate my claim for shares in the Company?
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Yes this can be used as evidence to show you did the work in exchange for effective "Sweat Equity" i.e the shares were to be remuneration for your work. As a starting point before you sue for the shares, you have to make a written demand that they be transferred into your name.
Customer: replied 1 year ago.
Hi do I have to do that in the form of a personal letter or can the demand for shares come from a solicitor?
Expert:  Alex J. replied 1 year ago.
Hi thank you. You can personally send her a letter warning that if she does not send the shares you reserve the right to take legal action. Sending the demand from a solicitor will give it more gravitas and she is less likely to ignore if she thinks you have been professionally advised. Has she been ignoring you to this point? Kind regards AJ
Customer: replied 1 year ago.
Hi, I sent him an invoice last October and yes it was completely ignored and has been ever since. What percentage of the shares can I look to claim back, I was hoping it would be 50%. Can I back date my claim to last year when the company started trading?
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Your claim should be from the date the shares were supposed to be transferred to you. If you were promised 50% of the issued share capital, then this is what you should claim. If your demand was ignored, then I would send the next letter from a solicitor and say if the shares are not transferred you will considered suing them? Kind regards AJ
Customer: replied 1 year ago.
Hi, thank you very much for your help
Expert:  Alex J. replied 1 year ago.
Hi, If I can assist any further please do not hesitate to contact me. Any feedback is gratefully received. Kind regards AJ
Alex J., Solicitor
Category: Law
Satisfied Customers: 3609
Experience: Solicitors 2 years plus PQE
Alex J. and other Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice