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 JGM Your Own Question

JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 10281
Experience:  30 years as a practising solicitor.
31090051
Type Your Law Question Here...
JGM is online now

I own a business as a partnership. The other partner has

Resolved Question:

I own a business as a partnership. The other partner has invested approximately 20k as have i. They have today stated that they will be signing the business over to me 100% and taking their name off the companies house and also have started taking a loan repayment from the bank without a formal agreement or notice
Submitted: 5 months ago.
Category: Law
Customer: replied 5 months ago.
they have another company which they used to pay the initial 20k. I am concerned that they are trying to do something untoward
Customer: replied 5 months ago.
it is a limited company
Expert:  JGM replied 5 months ago.

Thanks for your question. I presume the £20000 each was put in by way of director's loans and that the other party now wishes to resign as a director and have their money returned and give up their shares. Is that broadly the position? Can the company afford the payment? Is there a shareholder's agreement?

Customer: replied 5 months ago.
the company can afford repayments but not at the amount they want right now . They want 650 a month for 36 months however i have not yet seen all of the paperwork proving the actual amounts they invested.
the agreement was verbal, it was to be 50/50 and when it started gaining capital then the loans would be repaid.
Expert:  JGM replied 5 months ago.

Unless there is a shareholders agreement or Articles of Association to the contrary there is no automatic right for a shareholder in a private to be bought out. In addition that that if the company is going to buy back the shares there has to be a special resolution of the company. You should stop any further payments until this is regularised by a formal agreement.

Customer: replied 5 months ago.
Does that then mean that the initial investment down not actually have to be repaid unless a formal agreement is made? I have also just spoke to the accountant and it seems that the figures submitted are wrong and is actually 8k less than they suggest?
Expert:  JGM replied 5 months ago.

Yes that is exactly right. They can just take money out without the company's agreement or some kind of mutual arrangement. That is theft essentially.

JGM, Solicitor
Category: Law
Satisfied Customers: 10281
Experience: 30 years as a practising solicitor.
JGM 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