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  1. #1
    Join Date
    Apr 2008
    Posts
    2

    Angry Business Break-Up

    My question involves business law in the state of: NC

    I own a company along with two other business partners that has been open for approxiamently a year. Throughout this year my business partner (CEO) and I (CFO) have had many disputes and disagreements with our fellow partner (COO) about non-completion of work and all around not doing her job, which we have proof, and we can't take it anymore. We all own equal shares of the business which was ONLY stated when the Incorporation took place over the internet completed by us. There have been no other contracts signed. So basically my question is can we fire her??????, offer her a buy out for her portion of the company and if she refuses go through the drama of a lawsuit. In no way are we rich and we all are required to work in the office 9-5 to receive our salary, which she has not done for a week. We do not have a lawyer, but have a consultation this Tuesday. Could you please help me so we can know what to expect prior to the meeting. Thanks : )

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Business Divorce

    I'm not sure what you mean by wanting to "know what to expect"?

    You're going to go to your lawyer, give him all the details of the situation (presumably including copies of paperwork, such as contract, articles of incorporation and such), and ask him what he recommends.

    Then you listen to him and do what he says.

    This is the kind of situation you entrust to a lawyer, rather than anonymous law enthusiasts on the internet. You've already taken the proper first step.

    Good luck. Your partner sounds like a real gem.

  3. #3
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: Business Break-Up

    I'm commenting on this because I gone into businesses with partners.

    The first time around there was no agreement as to who is to do what. My partner was to supply his knowledge, knowhow, I was to supply the startup captial $10,000.00. Each owns 50/50.

    I worked a regular job, and my wife was in between jobs, and I had her work for free to get the project off the ground. After a year, though my partner didn't say much, my wife told me that he expected me to put in time after work. Long and short of it, we negotiated on a sum for him to buy me out.

    The second time around, I partnered with someone to buy and rehab houses. This time, we wrote down the responsibilty of each partner, P&L allocation, PLUS a buyout formula. We parted way following the buyout formula.

    Up till a year ago, I owned a business, and a neighboring business wanted to join together our business operations, with each of us a 50/50 partner. I discussed this with my manager, and wife, and they both told me it was a bad idea. Besides this business, I own rental properties, another business, where I have to run off and take care of things. WIth this partner, he's going to say "where is this guy going all day". It seems this guys's view of running this business is you have to sit there all day, even if you fall asleep".

    Actually, I was looking to buy 50% of a business once, and asked about the reaons the 50% partner is selling. Apparently he owned a few businesses, and started some carpet stores. His partner in the bakery was expecting him to come by Monday's Wednesday's Fridays to sit and watch the place. I thought about it, and figured that if I went into this situation, I can't do anything on those days either.

    Finally, about your situation. If there is no written agreement, I suppose the two partners can form a new entity, without the COO, and you'll bypass all the issues of a buyout.

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