Buying out the other director

[KentPhilip]

One thing I forgot to mention is I asked him to come back to me with a price that he was happy with.

Let him make his offer first; it might be a very low figure in which case you need negotiate no more.

[conned tractor]

Make him your own offer, preferably in cash - explain how you arrived to it, explain difficulties of future work and that if company needs to stay afloat it might require shareholders to put in more resources like cash or face being dilluted (not a lawyer so don't assume my opinion is legal advice).

Basically explain that he can get out now with some cash and stay friends, or it won't work anyway and he'll lose the offer and you as a friend (that might be extreme but friends don't shaft each other in such situations).

That's my problem. What price do you put on it?

Another whinge. He hasn't done half of the things expected of him. I expected him to sort out business insurance and another legislative requirment has been overlooked (can't really go into that one here), I expected him to pay bills and sort invoicing, etc. I have a couple of weeks of between contracts and have come into Plan B headquarters to find notice of court action on rates, final demand for rent plus more. Oh, and he's been using the business account for his shopping and train tickets. Uses the Plan B to help his other buddies out.

This is why I've had to say to him, enough is enough, in fact my missus looked at the business statements the other day and knocked on his door at 8:00am to have a go at him, he had spent £890 over two months of business money on personal expenditure - now I had said to him, if he was stuck for cash then to use it to help him out - but there is an entry for aventure fooking golf???

[Churchill]

Can't you arrange an erm... accident?

Works on "Murder She Wrote" all the time.

Apart from the fact that the murderer gets caught most of the time. Well, all of the time really so I suppose that idea won't really fly.

As you were.

On a serious note, you mentioned a grant of 20% what are the liabilities regarding the grant?

[conned tractor]

Can't you arrange an erm... accident?

Works on "Murder She Wrote" all the time.

Apart from the fact that the murderer gets caught most of the time. Well, all of the time really so I suppose that idea won't really fly.

As you were.

On a serious note, you mentioned a grant of 20% what are the liabilities regarding the grant?

Let's just hope Angela Lansbury isn't about.


Looking at the liabilities of the grant are on a gigantic list of things to do. It was a scheme that helps graduates (they accepted my fairly recent higher degree as falling within the criteria) start up in business and as the only one with a degree I had to be the one receiving it.

[MarillionFan]

I had the same problem when i set up my shops.

My business partner did the same also treating it
is a cash machine. In that case we had put in 25k each and he took 23k. We owed 40k at the time and had cash issues.

To be honest I don't believe you owe the other director anything. You have cash flow problems and without input of funds you're dead.

He's obviously spent money personally , therefore you can
consider that a directors loan he has to pay back.

I would work out the number of days he has done as work, minus the loan he owes and that gives you a figure to buy him out. Your doing him a favor there because frankly your business sounds worthless at the moment.

Next!

[MarillionFan]

Just realised I made an assumption there that you hadn't paid him.

If you have paid him for his days, then scrap what i said. He owes
the company 980 quid. Write it off
or better still tell him to **** off and you want the money!

[conned tractor]

I had the same problem when i set up my shops.

My business partner did the same also treating it
is a cash machine. In that case we had put in 25k each and he took 23k. We owed 40k at the time and had cash issues.

To be honest I don't believe you owe the other director anything. You have cash flow problems and without input of funds you're dead.

He's obviously spent money personally , therefore you can
consider that a directors loan he has to pay back.

I would work out the number of days he has done as work, minus the loan he owes and that gives you a figure to buy him out. Your doing him a favor there because frankly your business sounds worthless at the moment.

Next!

Yep, it is the fact that I already ploughed large portion of ze varchest into Plan B, turns out he is useless, but talks a good game, was the breaking point. Although I have some contractorco reserves I am reluctant to put it into Plan B.

I was thinking the same way as you suggest but on a price/work basis. Yes, I am doing him a favour, and he probably doesn't even realise it, but I want him and his family to be ok.

[Churchill]

Yep, it is the fact that I already ploughed large portion of ze varchest into Plan B, turns out he is useless, but talks a good game, was the breaking point. Although I have some contractorco reserves I am reluctant to put it into Plan B.

I was thinking the same way as you suggest but on a price/work basis. Yes, I am doing him a favour, and he probably doesn't even realise it, but I want him and his family to be ok.

Pull the plug. Go Phoenix.

[doodab]

Yes, I am doing him a favour, and he probably doesn't even realise it, but I want him and his family to be ok.

Then tough love so that he stop behaving like a dickhead might be your best option.

[TheFaQQer]

Work out what happens about the grant if the business folds.

Work out whether you have the resources / inclination to start the business again.

If there are problems with either of these, then you need to work out what you owe the moron. I'd suggest nothing, but he keeps 5% of the business, but you could work out exactly what he has done, take off what he owes, then base a figure on that.

If you can fold the business, then that sounds like the best plan - do it and start again away from this guy.

Final thought - you could still offer him a job based on the work that he actually does, if you want to see him right.

Now remember why friendship and business shouldn't mix.