The other party knows they want out, but he is dragging his feet, he knows he can't run the businessw/o them. They have asked the other part to buy them out or find someone to buy them out if he won't do it. Is it up to the other party to find someone to buy them out or up to them? The other party is business savvy, my husband and his Father are not. My husband and his Father knows that this guy has been stealing profits from thier end of the business, and they just want to get out before they get totally screwed. The business is over 40 years old and thriving, I just want to see that they get all that they are entitled to. As of now, they are entrusting the third party to "handle it" and I am not comfortable with this.
2006-06-29 15:07:24 · 4 answers · asked by ktterdfurguson 4 in Business & Finance ➔ Other - Business & Finance
It depends on the type of business this is. If this is a partnership, then look to the Partnership Agreement (if there is one) for details on how to wind down the business and cash out. If there isn't a Partnership agreement, then do as the above poster suggested and hire a lawyer and a CPA and shut that puppy down. By law you may not be a partner against your will, so they can pull out at will.
If this is a corporation, look to the ownership structure. If your husband and his father have a majority of the voting shares, then again all they need to do is vote to liquidate the business and that's that. If they don't hold majority shares, they're in a bit rougher spot. Check with a local lawyer to find out your options. At the very least, get the books audited by a CPA firm to find all that money you think he's been skimming. If they go in looking for fraud committed by a particular person, they may have a decent chance of finding it.
2006-06-29 15:27:41 · answer #1 · answered by David B 2 · 0⤊ 0⤋
David B is right, it would depend on the structure of the business. If it's a corporation, there should be something written on the Articles of incorporation or by-laws of the corporation. There are so many variables, like is it a partnership between corporations or individuals?
2006-06-30 00:14:37 · answer #2 · answered by gatwick100 2 · 0⤊ 0⤋
Sir/Madam,
The business require a delicate handling of situation and keen intelligence. You should review this problem carefully before making a decision. I wish you success .
2006-06-29 22:28:55 · answer #3 · answered by nguyenvunhat2005 2 · 0⤊ 0⤋
don`t just trust the other guy ..tell them to see a lawyer and hire a accounting agency to audit the books. and close out their part of the business. he can`t make them stay his partners.
2006-06-29 22:17:26 · answer #4 · answered by alleykhad607 5 · 0⤊ 0⤋