My sister and i were asked to set up a residential home for children in care . The couple who asked us are man and wife and had a nursery school for children.
We agreed to set up a new company for them and agreed salaries, pensions, car. pc ...all the usual things required.
More importantly, my sister and i advised them that the business that we were setting up is a specialist setting which requires a knowledge base of children in care of loc authorities in scotland.
My sister and i had all the skills required and negotiated and agreed with the couple that we would not commit to this new venture without agreement that we would both receive 10 per cent profit shares each year based on any profit accrued by the new business.
This was due to the enormous amount of working time, committment and pewrsonal time needed to ensure the safety and establishment and success of this new business . We both knew the huge amount of effort it would take to set up such a business from scratch with our intellectual knowledge, skills and experience as we had both already been empoyed in this field of work.
The business is 3 years old in Oct 2013. It has grown slowly and steadily with many children being accommodated for their loc authorities to ensure their safety and well being. Despite the recession, the business continues to accommodate children in care.
All during the previous 2 - 3 years and soon after it opened, the owners begun to pressurise us with discussions on finances being tight, and the company not being financially fruitful. This talk has continued and only last week when i asked if the company was becoming more successful financially as i wanted to discuss possible profit shares due to me, i was told that the company was not making any profit whatsoever , only just breaking even. They refused to show me the business accounts so i obtained them from the companies house records as they are public documents. The company had recorded profits of 77 k in year 1 .....167 k in year 2 ....and year3 is yet to be published although i am aware that this last year has been the busiest so far so would expect it to be a larger recorded profit than year 2. My sister left the company 6 wks ago due to constant anxieties about finances being discussed by the owners daily. Now we find that the business is profitable and indeed there ARE profits owed to us as originally agreed prior to setting the business up. Can you advise as to where we stand now . All agreements were verbal but my sister and i recorded with a lawyer at the time of the setting up of this business . I am still employed there but feel they have breached all trust and lied to us despite the business becoming successful and very established with a very good reputation despite being only a couple of years old.!!! Where do we stand in scots law,,,or is it employment law for uk ...thank you.