partnershipWe recently open a company in Ireland, I was alone with the new business and one other existing business. So because of lack of time, I decided to find a partner that would help with the business. I knew someone so I propose to buy 50% of my new business for X amount of money. We agreed that he would pay it in 5 instalment of 20% each. He paid the first one, I put 50% of the company on his name, because I really needed someone to help, at least by just sitting there, and he never paid the rest.
Our business is a new business, so the money we make we pay salaries, etc. I haven’t got any profit from that business yet, as I aim to establish that business before taking money. In the other hand, he is all the opposite, everytime we receive a payment in our bank account, the day after he send all to him, saying that is his salary, or salary from the past that was in arrears, etc. I have already figure out that, there is no way to change him, he expend more than what he earns, so the problem I have is that the business is not growing because of him.
Now, because of him, I cannot sell the business, because every time there is a buyer, he ask for more money so the buyer never buy it, I cannot make the business grow because he keeps the bank account always with little money.
If I start taking a salary for me, there would be no money to pay the employees, and the business may end up with debts, and I believe if the company has debits we will end up closing the business. Just as an extra note, I had invested in this business 100k that I had to buy my home.
The first thing I would do is cut off this person’s ability to withdraw any more money from the bank. You can probably recover the 50% ownership since the buyer never actually completed his obligations, but you may never be able to recover the money he is pulling out as his “salary,” especially if he does not have the money to pay you back. I’d go to the bank and put as many restrictions on the account as possible, including requiring two-signatures for any withdrawal.
After that, you’d probably be best off seeking legal help from an Irish lawyer. Not being from Ireland, I can’t lend you any advice on this front. However, I do think you need to “stop the bleeding,” or the loss of your revenue, immediately.
It seems that you may not have had a proper agreement with your partner about salary. It’s always best to cover such details ahead of time and to have an agreement on the disbursement of profits well-ahead of bringing on a partner.
All content is licensed under CC BY-SA 3.0.