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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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My business partner and myself an 50/50 in our business.

Resolved Question:

My business partner and myself an 50/50 in our business.
Last year he removed a lot of money from the business account and used it for personal spend and investment. Despite promising to repay it he hasn't and now I want to separate from him were do I stand legally with all the money he took?
Kind regards
David
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. Is the business a limited company? Kind regards AJ

Customer: replied 1 year ago.
Heathcote & Hare Ltd.
He took money direct from the business for personal investments such as
Esme house £5000
Sapphire capital £9000 X 2Paid lawyers £18500 (Edwin Coe)Decorated his house - Marylebone interiors - £18500And others
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. Do you have a shareholders agreement? Going forward can you continue working with this person? Is the money owed listed as a debt to the company in the company accounts?

Customer: replied 1 year ago.
No, not possible to work together. He married into a very wealthy family and the father in law had his accounts and lawyer write off his debt into the family business. I did not agree to this and want to know what action I can take?
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. I will write an answer detailing your options. Can you confirm first, is the company solvent? Do you want to carry on the business?

Customer: replied 1 year ago.
Within the business which is an events company we do weddings at Bruisyard hall in Suffolk which is owned by their family. We also did weddings at different external venues and we have 2 pub tenancies, one with Greene King and one with adnams.
Initially it seemed very amicable - we would split the business down the middle, one pub each as costs were similar and he keep Heathcote and hare events at Bruisyard.
I would then rebrand the external events and take the other pub. He has been in charge of the Heathcote and hare account and despite received 10's of thousands of pounds from the event bookings he is now trying to Bill me for the events as the money isn't there.
After 3 years building the business he has sent an email today saying he will agree to the split if I pay him £176k! No mention in th breakdown of the money he took which is about £70k
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. Does the company actually have any assets that you want or need? Are the company creditors unpaid? Kind regards AJ

Customer: replied 1 year ago.
The company has paid a deposit on each pub of around £24k, there is a refrigerated van and lots of other catering equipment such crockery, cutlery, fridges utensils etc.
There is also outstanding supplier invoices which I wanted to split but he has included in the ridiculous settlement agreement.
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. Your options are:

- He buys you out or you buy him out - you get an independent valuer to agree a valuation and that is the price you agree to pay;

- You agree the business cannot continue you trading and you put it into liquidation;

- You apply to court to have the company liquidated on the basis that it is a failed partnership;

- You carry on in business with him, but get him to sign up to a repayment plan and record his debt formally in the company accounts;

- You leave the business and go and work else where?

For any of these options you need to start a dialogue with him, would he reasonable agree to repay any of the money by forgoing his right to dividends for example?

Customer: replied 1 year ago.
He has had his lawyers draw up a ridiculous agreement where I agree to pay him around £75k - do I have the right just to ignore his pros all and carry on?
Expert:  Alex J. replied 1 year ago.

Thank you. You are not obliged to accept his offer you can counter offer or reject it. Is this a response to you demand the money back? Is the £75k for his shares?

Alex J. and other Law Specialists are ready to help you
Customer: replied 1 year ago.
No he has had his accounts draw up a list of outstanding creditors, paye, vat etc. We originally agreed to pay as much up as possible then split the difference at the end of the month, I even contacted suppliers to ask them to Bill me for half which they were happy to do - until he called and said that there was legal action going on and not to separate the accounts. I understand this must be incredibly difficult for you to be drip fed the circumstances and not see the documentation.
I think the main question I would like you to answer is - can I go after him for all the money he took out of the business without permission and hasn't returned?
Expert:  Alex J. replied 1 year ago.

Hi thank you. Yes you could go after to him for the money he has taken but there are two ways you can do this:

1. You would need to sue him in the name of the company: 2.you would have to apply to court to have the company liquidated on the basis that this is actually a partnership that needs to be dissolved. Either way the business relationship will come to and end and both ways will cost money. Is negotiating with him a non starter? Kind regards AJ

Customer: replied 1 year ago.
Thanks Alex, that's all. Send me the link again so you get paid please.Regards,David
Expert:  Alex J. replied 1 year ago.

Hi thank you very much. I will ask the site administrators to send you the link again. If I can assist any further please do not hesitate to contact me. Kind regards AJ