getting stiffed by my business partner!!!

gingermut

Hello,

I am having problems with my business partnership, I was asked to be a partner in his business since early 2007 and we agreed that I would get €400 per week + 30% equity, in September 2008, my partner told me that I could no longer draw a wage from the business as sales were slow and he also told me he would not take any pay for himself, I have seen recent bank statements and it shows he has been taking €315 a week every week since then for himself. :mad:

I have not made a bean out of the business since September 2008 despite the fact that I am still a partner and have done work, I reckon I would have earn't €12,800 during the past 8 months

I feel really cheated here, is there anything I can do?

I am wondering whether to pull out of the partnership now, if I do, what would I be entitled to?

Xiney

You should really speak to a solicitor, since it all depends on what you've signed and so on.

gingermut

Xiney wrote: »

You should really speak to a solicitor, since it all depends on what you've signed and so on.

Deal was, we signed an agreement that I would get €400 per week + 30% equity.

At the point I started the partnership, the assets were worth about €50,000 and the business was failing, it is now worth about €150,000 and I added additional sidelines to generate extra income for the business.

What really annoys me about this is that my partner didn't really do any work in the business and now I find he has been taking an income for himself and I got nothing!!

Funfair

You need to sit down with your partner and ask him/her what the hell is he/she doing taking the €315 a week when you’re not getting a bean.

gingermut

Funfair wrote: »

You need to sit down with your partner and ask him/her what the hell is he/she doing taking the €315 a week when you’re not getting a bean.

I have emailed a solicitor on this to see where I stand. I was always against having a partner in a business and now I can see why.

Mrs OBumble

If this really is a partnership, then surely you have an arrangement to meet every month (at least) to monitor the financial situation and look at what needs to be changed. Why didn't you notice his continued drawings some months ago and ask about them then. Why didn't you have a formal agreement to reduce your own drawings?

Sounds like your business model needs a bit of work, TBH.

dade

OP have you not looked at the bank statements/financials since sept 08?
how much equity does your partner get?

has there been any formal/written change to the partnership agreement since 2008? if not then i would think you are entitled to your drawings. of course if business is bad then it would be prudent not to do that and keep some cash in the business.

get some info from a lawyer to find out what you can or can't do but don't go in guns blazing. the guy may have a legitimate reason for doing it like child support or what ever talk to him and discuss it rationally. the current climate is not one for dissolving a business in my opinion, unless you can do it better alone. but there may be problems with dissolving the partnership like splitting teh debt and also who gets which clients, assets etc.

maybe look to getting a new agreement signed which clearly stipulates no one can make any drawings even if just for a 6-12 month period to help the company ride out them bad times, and then you automatically revert to they original agreement, (if you can legally do that that is).

I remember when i worked for a partnership (as an employee not partner) it was a law firm, 7 of them in total. 4 would be in the office 5 days a week, the others would stroll in and out as they pleased. one of them was constantly having me the IT manager purchase kit that would then go home with him. the company paid for a small pbx to be put in his house for god sake, laptops and PCs for all his kids the lot. every time his idiot wife broke her phone or laptop I'd get a phone call.

Linoge

You are still owed that €12,800, you just have not drawn it. Suggest to your partner that you start to recover some of this money now and also that you wish to start being paid again and if he says anything tell him that you have noticed his withdrawals and let him explain himself.

LegacyUser

gingermut wrote: »

I was always against having a partner in a business and now I can see why.

Partnership. The only ship that doesn't float