I don't regret it, because they were holding me back.
The bills were getting ignored, & the company name was registered under me.
How long does it take for someone to realize I was just concerned about the company's welfare?
I don't think it came as a shock to them, because things were going to come as an end sooner or later...
2006-12-12 08:02:09 · 4 answers · asked by Trinity 4 in Business & Finance ➔ Corporations
When we created the corp.
I added their name as a VP
2006-12-12 08:52:21 · update #1
Thanks Flyboy,
that was the answer I was looking for...
2006-12-12 11:16:03 · update #2
The term "business partner" implies ownership on some basis. The term is loosely used in corporations as well as partnerships to mean an employee who is an owner. A 50+% owner can terminate a 49-% owner-employee assuming the corporate by-laws don't prevent it in some way.
Only you can decide if you were a jerk. Your problems, however, might not end with your partner's employment. Minority owners have rights under law. While employment might not be one of them the right to a share of the profits is a well established right.
Suppose you are an S-Corp and both of you had market competitive salaries. In addition, the company was making distributions in accordance with your percentage ownership. You decide to increase your salary and stop making distributions. After all, why would you want to pay out money to this lackluster former employee, right? If you do this you are probably going to get sued and will lose if you do. So, regardless of how bad an employee this person was he/she is still an owner and you have a fiduciary duty to treat them as such in accordance with the laws that protect them.
My suggestion? Buy them out.
2006-12-12 10:30:28 · answer #1 · answered by Flyboy 6 · 1⤊ 0⤋
so long because the companion wouldn't have equivalent stake in the agency then there is not any longer some thing incorrect with eliminating useless weight. If the companion did help to stumbled on the agency, you'll have a topic on your hand. agency splits are also commonplace as divorces and for reliable reason.
2016-10-18 04:28:53 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If they were "partners" then how could you "fire" them. To fire means to remove from employment. Were they employees or partners?
If you didn't have a written agreement with their names on it, they were just employees. Every business has times when they have to clean house. Just a part of the grown up world.
2006-12-12 08:39:59 · answer #3 · answered by Gem 7 · 0⤊ 1⤋
No, you aren't a jerk for firing someone for not looking after his responsibilities.
2006-12-12 08:09:32 · answer #4 · answered by erin7 7 · 1⤊ 0⤋