Reply to: Buying out the other director

[Scrag Meister]

What a nightmare.

Hope it all sorts itself out sooner rather than later.

[jmo21]

I just keep coming back to what you stated in the first couple of posts, you wanted to help a down on his luck mate, and you gave him a 50% share, when he only put in 5% capital.

Just a massive mistake.

Hope you get the clean break, good luck!

[Cliphead]

UPDATE - just in case anyone is interested. The Saga continues...although i'm less stressed about it now.

Still an ongoing battle. He's replied to my solicitors letter (which offered to take on the liabilities) stating that some units have sold, yep, all of around £150 worth. Still wants £4k for his shares.

I sent him a letter offering him £1K so I could just get on with it.

He replied saying an absolute complete load of bolloxs about customers we have caused "professional embarasment" and that I should expect a phone call from them (this is his mate by the way that we were going to make a customised product for - and funily enough sell at such a small margin it was practically not worth doing).

So now, the rent has bounced, there is no money in the business account to pay it. I am having to deal with the landlord, I am being open with them. I have asked them to transfer the lease to a new company - they declined at present.

I have moved all of my kit out and left anything paid out of the business account in the premises. Which was a complete BAST@RD of a day and the cost of a wagon plus help - in the form of a few beers. It's hard work moving 4' x 6' dia tanks .

And the best bit. Went over the business statements last week and noticed a DD setup which i'd overlooked but seeing as their was no activity on the account it stood out. Guess what, I've a DD to BCW group (debt collection agency) which has been coming out since march. On top of the personal shopping bills he paid in the early part of the year.

So, I decided to let the company get into trouble, why throw good money after bad. We are "jointly and individually" personnally liable for the lease, which I am happy to pay especially if they let me transfer it to "new co". Well, it'll be me they come after anyhow. The lease is the only thing he has on me now....he can't produce the product.....he can shove the initial packaging designs (for which he claims ownership).....they were good, but no chance in hell i'll be using any of the work that he has even come close to (he dealt with the artist/ designer). Just got to wait for the nasty letters from HMRC to come.

And the better news is i've just had my first direct contract invoice paid.

Thanks for all the good advice so far by the way.

Always interested, looking forward to a satisfactory conclusion. This is one story worth a blog somewhere I think.

[conned tractor]

UPDATE - just in case anyone is interested. The Saga continues...although i'm less stressed about it now.

Still an ongoing battle. He's replied to my solicitors letter (which offered to take on the liabilities) stating that some units have sold, yep, all of around £150 worth. Still wants £4k for his shares.

I sent him a letter offering him £1K so I could just get on with it.

He replied saying an absolute complete load of bolloxs about customers we have caused "professional embarasment" and that I should expect a phone call from them (this is his mate by the way that we were going to make a customised product for - and funily enough sell at such a small margin it was practically not worth doing).

So now, the rent has bounced, there is no money in the business account to pay it. I am having to deal with the landlord, I am being open with them. I have asked them to transfer the lease to a new company - they declined at present.

I have moved all of my kit out and left anything paid out of the business account in the premises. Which was a complete BAST@RD of a day and the cost of a wagon plus help - in the form of a few beers. It's hard work moving 4' x 6' dia tanks .

And the best bit. Went over the business statements last week and noticed a DD setup which i'd overlooked but seeing as their was no activity on the account it stood out. Guess what, I've a DD to BCW group (debt collection agency) which has been coming out since march. On top of the personal shopping bills he paid in the early part of the year.

So, I decided to let the company get into trouble, why throw good money after bad. We are "jointly and individually" personnally liable for the lease, which I am happy to pay especially if they let me transfer it to "new co". Well, it'll be me they come after anyhow. The lease is the only thing he has on me now....he can't produce the product.....he can shove the initial packaging designs (for which he claims ownership).....they were good, but no chance in hell i'll be using any of the work that he has even come close to (he dealt with the artist/ designer). Just got to wait for the nasty letters from HMRC to come.

And the better news is i've just had my first direct contract invoice paid.

Thanks for all the good advice so far by the way.

[lukemg]

I would just put things on hold and let the dust settle. Stop all access to premises and of course to any bank accounts. Let him know you consider the venture over and you want to get as much of your investment back as possible. Tell him you have no objection to him starting up elsewhere with the same idea and would be happy to sell him the equipment at cost (he won’t find anyone else to bankroll and has zero chance of doing this).
Close down any and all legal connections and cut off all communication, once the threats start, however minor, that would be it for me.
Ideally, I think MF is right and you should get the stuff relocated because then you are fighting over fresh air but as you say this is difficult to do.
You have such differing views of what you both deserve from the venture that I don’t see any agreement, don’t bother trying to convince him. Make him see that what is there is all potential and of small if any value currently.

[conned tractor]

CT. This is all for a product you haven't even sold. Just take your equipment out now so your premises are empty. Start another company, get on with it, and let this guy flounder on with a shell which needs two directors to sign stuff off. As soon as the threats from HMRC come in then maybe it will focus his mind.

Yes, for a product that hasn't even sold yet. This is, sort of, the next step, but he doesn't realise this. Or even resign as director, sell the shares/ give them back(?) and he can keep the rent and all the other liabilities (accounting etc.). I'm suprised no one has asked how long the lease is yet.

It could also be from his perspective though, that you are the arse who has nicked his idea(?) and are kicking him out as you reckon you can make a mint without him. We only have your side.

Yes, you only have my side. He can keep the idea, I don't give a tulip any more. It is, in my opinion, that working with him as an equal partner was a liability to me and that's the reason I wanted out. (And the fact I did most of the work, whilst keeping down a contract, and also had all the admin stuff pushed over onto me and the attitude/anger, the morosity and his lack of ability to get out of bed but these are side issues).

It's almost fated what is going to happen. I've just got a tulip load of tulip to deal with in the mean time.

[MarillionFan]

CT. This is all for a product you haven't even sold. Just take your equipment out now so your premises are empty. Start another company, get on with it, and let this guy flounder on with a shell which needs two directors to sign stuff off. As soon as the threats from HMRC come in then maybe it will focus his mind.

It could also be from his perspective though, that you are the arse who has nicked his idea(?) and are kicking him out as you reckon you can make a mint without him. We only have your side.

[PRC1964]

Unless you want this to spiral into a full on court case with all dirty washing being aired in public you need to get some kind of mediation going.

Of the two of you, who stands to lose the most? It sounds to me as if he has little left to lose and will fight you all the way. If you use a mediation service you might be able to avoid some real nastiness and you'll seem like the good guy.

I know it would go against all my instincts to make a deal with someone who messed me around, but sometimes your family comes first.

Oh, and revenge can be even sweeter a few years down the line.

Good luck.

[conned tractor]

Can you perhaps get a mutual friend / message passer who understands both sides to try and explain to him why you entered into the whole sorry mess in the first place and that he needs to take some responsibility the end result?

That was tried earlier, it was his brother in law, who is normally quite objective and quite clever - the reason I suggested it. He did however, confirm that his wants were reasonable and I should've paid out.

[eek]

I really do need a break from a screen - I read that as "friendly massage parlour"

I don't think a break from a screen is required. That's the sign of a dirty one track mind.

[TheFaQQer]

Can you perhaps get a mutual friend / message passer who understands both sides to try and explain to him why you entered into the whole sorry mess in the first place and that he needs to take some responsibility the end result?

I really do need a break from a screen - I read that as "friendly massage parlour"

[doodab]

All the money demanding is verbal so far, although dates and values requested have been diarised and are with my solicitor. The texts are suggestions of, Mrs Tractor does know what you did x, and basically name calling, such as coward - not highly abusive.

Can you perhaps get a mutual friend / message passer who understands both sides to try and explain to him why you entered into the whole sorry mess in the first place and that he needs to take some responsibility the end result?

[conned tractor]

All the money demanding is verbal so far, although dates and values requested have been diarised and are with my solicitor. The texts are suggestions of, Mrs Tractor does know what you did x, and basically name calling, such as coward - not highly abusive.

[TheFaQQer]

Might be worth keeping a copy of some of them - demanding money with menaces etc. might come in handy at some stage.

[Cliphead]

UPDATE - By the string of semi*-abusive (*not life threatening) text messages i've recieved directly and indirectly (members of my family passing on messages ) I think it's safe to assume he has recieved the solicitors letter. The last text I got even implied that he'd tell my wife of some of the things I've got up to over the years - yes, I haven't always been a good lad when in my 20's and he's got some dirt on me (I am a good lad now though, honest gov'), but I think he's just grabbing at straws. He'd be a dick if he tried it, we'll see. My family is the most valuable thing I have.

I've told him to seek 'real legal advice' and to keep future communication formal.

Looks like he wants to scrap though, ah well, could do without it myself. I still don't think he realises I didn't need any of this in the first place - just trying to create a job for him and a bit of extra pocket money. Incompetent moron.

Make sure to keep all those communications in some tangible form.