I have a partner in a small business who will not let me buy him out and refuses to buy me out, what can I do?

Question

We are inc. which I'm sure adds even more problems to the situation, both of us are listed as officers of the corp. Basically he has different ideas of the way the business should be run and I've let him try his ideas and it has got us in a tough financial situation, but he refuses to do anything about it. He wants me to put $10 grand into the business to get it going good again, but I will not do it because we will be in the same boat in 6 months we are in now if he continues to do things his way. I want out of business with him, but with his refusal to buy me out and him not accepting any offer I've given him... Any help?

Answer 1

See a local reputable lawyer ASAP!

Answer 2

Sir,
I have no idea where u are from. I have studied adequate Indian Law which is a replica of English law to a great extent.
Your company being incorporated does not mean that u have more problems....you can approach a court of law and seek help. You can move the court for dissolution of the firm(i.e. assuming that there are only two of you in the firm) as it is sufficient if either one of u file an appeal for dissolution. There is a provision in Indian Law whereby any partner may appeal for dissolution and after the court conducts an inquiry, will disslove the firm if it deems that the firm cannot be run for the mutual benefit of the partners. I am sure that a similar provision will exist in the law of ur country.
Hope I have been of assistance.....don't worry...consult a lawyer for ur problem and make a mention of the above.

Answer 3

Your choices seem to be, either sell out to someone else, or put in the money he asks.

If you do nothing, and cannot stop him from exercising his share of the business, you seem to make the case that the business will fail anyway.

Selling out gets you out from under any additional financial burden and risk your partner exposes you too. You can, at least recover some of your investment.

Giving in to his demand for $10 grand MAY work out. Who knows? The fact that you don't believe it will put a damper on your spirits, but if you do, it's your choice to make. Does he plan to put in an equal investment? Or is he expecting you to risk it all, yourself?

If he doesn't plan to put in any more funds of his own, you've got a great excuse to turn him down.

I would like to see your articles of incorporation, and any other agreements you've made in writing with this guy. What is in these agreements that lets him make those decisions that got you into the tough financial situation?

Answer 4

ought to the U. S. you cite have the initials GWB? China owns US. verify the commerce-stability. GWB does not have the gonads or gray count number to be conscious of what the hell is going on. we can't and could not at all be belligerent, so no longer in hassle-free terms do we tolerate them yet they're going to quickly start up putting those billions of $s in very strategic US purchases. We DO decide on management which delivers up this vogue. call it a Sino-situation coming.

Answer 5

Sell your share to another person. That way you can get our of the business and if he wants to buy him/her out then he can.

Answer 6

You might threaten to sell your share in the company to a stranger.

Answer 7

I had this problem too. I just bitched and bitched until he got out, though I was tempted just to withdraw myself from the corporation.

Answer 8

You need an attorney.
Oh yea, bill his time to the company, so that he will have to pay for part of his own downfall.

Answer 9

Any chance of selling to an outsider?

Answer 10

Sell your share on e-bay.