My 'silent business partner' wants to go it alone,?

Question

We never made an arrangment on paper, just verbal no one witnessed or anything, it was just me & her. The arrangment was she was silent partner who put most of the money up, but it ended up with, her trying to run the show & we both had equal amounts of money invested. She wants to go it alone but she has some of our stock & cash in her possesion & is refusing to give it back & share it out properly, so when I include it into my books do I total her stock value as our 'selling value' or our ' cost value'?

Answer 1

cost, unless the value has fallen, in which case use the lower figure.

Answer 2

i know from your various postings that you're capable of communicating your thoughts in a sensitive and thoughtful way, but that might not be the best thing right now. the last thing you want is to appear sympathetic or even somewhat interested. tell her flat out that your uncomfortable with what she's been saying and that under no circumstances will you have sex with her. tell her she needs to decide whether she wants to continue on a professional level or dissolve the business all together because this thing she wants isn't happening with you, business or not. that should do it. and i'd also document everything lest this thing turns around to bite you in the ***. hell, in truth i'd already be looking for another business partner. can't see this ending well.

Answer 3

Oh dear its always a pain when a partnership breaks down and there is no formal written agreement in place.........It can be a minefield.

Firstly you must give her the oppurtunity to buy you out of the partnsership at a fair value. Fair value being your capital tied up in the business and any goodwill which has been built up during the period of trading.

If she wants to play hardball then please go and seek professional advice from an accountant (to take care of the financial settlement) and a solicitor to deal with the legalities of the break up.

Going it alone is not as simple as just restricting access to stock and records as you have equal rights under the presiding partnership agreement in place when one is not formed.

It may be costly to do the above but it is definately worth doing in order to get your money back plus goodwill. Dont take it lying down and dont get your pants pulled down over cost get it done properly.

Answer 4

Dependant on who's name the business is registered in depends on what action you can take. If its not registered, like if its not been running long, don't worry you can still do something.

I seriously suggest you go to citizens advice. They are solicitors who can advise you, give you the relevant info etc. (Sorry if u knew that already!) Take everything you have, such as invoices, bills etc and they may be able to see the whole picture better.

Or maybe you would be in a position to buy her out? If you offered to pay the amount that she has invested, in return for the stock (and minus the £ she already has from it) she may go for it? But if that is done, make sure that you get a signed agreement and witnessed by someone independant, such as another business associate.

Answer 5

How did she get the "stock and cash", as part of her initial investment or bonuses or other compensation. If so, then I think, it rightfully belongs to her. Consult with your accountant on how it would be handled.

More importantly, does she intend to compete against you? Do you have a "Non-compete" agreement with her? Ever talked about one? If not, hopefully she doesn't have access to client/ customer information, or she'll be your worst nightmare.

Answer 6

Get yourself a good Lawyer.

Answer 7

ask your accountant