My father is being sued by his former manager. The manager is claiming that he never received any of the profit from the company. He received a salary but there essential no profits to split. In actuality he received more money than my father because at times my father would not take a salary. The company has never been very profitable at all. Twice my father had to secure a private loan (based on the equity from his personal home) to keep the finances of the company afloat. Can the gentlemen suing my father also be held liable for the debts incurred in the company? And if a court does decide to force my father to buy his 30% of the company, how will they evaluate the companies worth? I mean if the company is making no profit and is actually in the red then would he recieve essetnailly 30% of nothing?
2007-07-05 07:20:25 · 3 answers · asked by Cyrus 1 in Business & Finance ➔ Small Business
It all depends on how it was written. You need to see what was agreed too. I am sure your dad had him sign something when he was given stock. Was it Phantom stock?? I am in staffing and in my business the price is based apon earnings, say 5 times earnings. There are companies out there who prices companies for a living. What kind of business is it??
2007-07-05 08:48:02 · answer #1 · answered by s f 2 · 0⤊ 0⤋
I don't think it's morally right for someone who has never run a business, let alone a corporation, to dictate what pay and benefits any commercial entity should provide for its employees. You failed to define "living wage" which, I am certain, will be different in different parts of the country. Where does the federal government get the authority to set minimum compensation levels? Taxpayers should NOT be forced to pay for health care, housing, utilities or anything else for anyone else except themselves and their legal dependents. If a person's job doesn't pay enough for them to 'provide for themselves, they shouldn't be making more mouths to take care of. If their wage isn't enough, they need to do the work (education, training, whatever else) necessary top get a better job.
2016-05-18 23:42:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
no -- and you are correct, if the company has no value then the stock is worthless
2007-07-05 07:25:00 · answer #3 · answered by golferwhoworks 7 · 0⤊ 0⤋