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About 6 months ago I started a new business of which I was the sole director and shareholder. Shortly after this, I partnered up with two friends, one of which become a director and shareholder and the other just a shareholder.
The actual structure is that we all own shares in a holding company that has two of us as directors and the holding company then owns the trading company which has the same two directors. Our main customer decided to withdraw from the market in late 2015 so we had to find another revenue stream. During this time, I personally funded the business as I had at the point of startup.
Once a new venture started, the other director wanted all of the sales activity to be run through his other business, as he was our only sales source at that time, I agreed that he could run sales via his other business and we agreed rates. I went on to build an internal sales force also. He now wants more money for sales through his company as he feels that the margins are not high enough. I say that they are high enough if he produced the volume that he expected, but he didn't.
This has ultimately led to a breakdown in the relationship and we are negotiating a settlement agreement which would allow me to take back full control and shares etc but the other two guys are now making outrageous demands.
Guy 1: Wants to submit an expenses claim of £2500 even though he has no receipts or mileage logs and only actually did anything for the business for around 3 weeks.
Guy 2 (Director): Wants me to pay his companies bills due to low margins etc. There are also outstanding invoices from me to him which we have agreed can be paid over 10 weeks as part of the settlement agreement.
Me: Business owes me personally £24,000 plus I have a mileage claim for circa 14,000 miles. I am willing to compromise but they both keep pushing.
Guy 2 is now directing sales agencies he cannot pay to me. One even has a contract with my company which was issued by Guy 2 even though the work went directly into his other business. It has now come to light that the agency has a contract with his company but still he is trying to deflect it onto my company.
I have lost faith that the settlement agreement can be reached and I am starting to wonder if I should even bother negotiating further. What are my options?
I should also note that the stock transfer forms have been presented to them but I have never signed them to make the transfer official, they have never paid the consideration and they have never received any dividend payment from the business. If this is as simple as me telling them that its my business and not theirs then that is what I would like to do. Please help.
The actual structure is that we all own shares in a holding company that has two of us as directors and the holding company then owns the trading company which has the same two directors. Our main customer decided to withdraw from the market in late 2015 so we had to find another revenue stream. During this time, I personally funded the business as I had at the point of startup.
Once a new venture started, the other director wanted all of the sales activity to be run through his other business, as he was our only sales source at that time, I agreed that he could run sales via his other business and we agreed rates. I went on to build an internal sales force also. He now wants more money for sales through his company as he feels that the margins are not high enough. I say that they are high enough if he produced the volume that he expected, but he didn't.
This has ultimately led to a breakdown in the relationship and we are negotiating a settlement agreement which would allow me to take back full control and shares etc but the other two guys are now making outrageous demands.
Guy 1: Wants to submit an expenses claim of £2500 even though he has no receipts or mileage logs and only actually did anything for the business for around 3 weeks.
Guy 2 (Director): Wants me to pay his companies bills due to low margins etc. There are also outstanding invoices from me to him which we have agreed can be paid over 10 weeks as part of the settlement agreement.
Me: Business owes me personally £24,000 plus I have a mileage claim for circa 14,000 miles. I am willing to compromise but they both keep pushing.
Guy 2 is now directing sales agencies he cannot pay to me. One even has a contract with my company which was issued by Guy 2 even though the work went directly into his other business. It has now come to light that the agency has a contract with his company but still he is trying to deflect it onto my company.
I have lost faith that the settlement agreement can be reached and I am starting to wonder if I should even bother negotiating further. What are my options?
I should also note that the stock transfer forms have been presented to them but I have never signed them to make the transfer official, they have never paid the consideration and they have never received any dividend payment from the business. If this is as simple as me telling them that its my business and not theirs then that is what I would like to do. Please help.
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