What can I do to work out this type of partnership dispute?
I own a small business with one another partner since March, 2020. This partner left the business we co-owned to start his own business in another state with the intention of leaving the partnership we are in together the same month the business started. Due to this, we verbally came into a mutual agreement that he would be relinquishing his share of the business and will be back shortly from his visit to another state to complete the needed paperwork (our agreement was within the 1st month, 2nd month being latest).
During this time, we both agreed, again verbally, to find another partner to invest half as needed since my ex-partner left with a verbal understanding that he would be back within 2 months to complete the paperwork to relinquish his partnership. Now its been over 5 months and my ex-partner has yet to come to complete his paperwork relinquishing his share of partnership to the new partner (which he had previously verbally agreed to). He figured out that since our opening we have been doing much better and now he is claiming that he does not want to relinquish his partnership despite me already moving forward and finding a partner and having them invest as agreed upon by both of us prior to him leaving the business in March. Also this occurred during COVID-19 times and further made getting the paperwork ready.
The paperwork, loans etc are all under both owners name. Furthermore, since the start of our business , he has not contributed a single dollar to our business and now he claims that it is still his as his name is on the legal documents (that he had agreed to sign over once he set up his business in the other state). He also sent a cheque in august,2020 for the first time to show that he has made some sort of payment for this business perhaps in an attempt to make it look like he has tried (despite being absent for 5 months before). Currently, myself and the new investor/partner have been managing the business since march (as agreed by all 3 parties before) and now because of the ex-partner, this has created a sticky situation for all of us.
Has anyone dealt with this situation? And is there anything I can do to correct this situation?
Thank you for any help!!
I am not a professional in this regard I mean I am not a lawyer but I have a lot of practical experiences with similar issues as you confronted now. The best way to get it solved in a way under a professional lawyer and you should keep all the documents in written form not in verbal form. I am a professional advisor at this site you should check here for knowing information,tips regarding online casinos. For new people and investor, the queen bee bingo promo codes are useful to get started doing their best.I think you should contact a legal lawyer and discuss with her or him regarding your problem but till then you should not invest till this business agreement get solved!
I believe you'll have to force him out legally. Find a lawyer on this one. The longer you wait, the worse it may be, especially if you raise the value of the company and he wants to be bought out.
Not a professional here, but don't accept any money to run the business. It would only show he has a vested interest in the business, and you qualify his actions by taking his money.
It's like accepting mail from a squatter in your private home. With mail, you have to exict the squatter, giving them renters rights for a few months. Or, if a couple joins into marriage when 1 person has a fully self sustained business. As soon as the other newly wed person pays money toward any part of the business, that business becomes an asset of the marraige.
Well, at least I believe these are the rules I learned years ago at the university. Again, NOT A PROFESSIONAL.