Partnership problems/what to do

[steveeasy]

In February 2016 I set up a limited company with a good friend. he needed help and nothing ventured nothing gained. we signed an agreement where id pay him £500 a month for 7 years for a 50% share in the business assets.


In late April, having lent the business money to purchase materials for orders, my partner told me he was getting a bum deal. he told me the agreement was worthless and the company now did not have any assets. the payments for vat invoices were in a joint account, he closed it, went to the customers and asked them to pay him direct net of vat. hes gone.


Ive got rent and rates to settle. some friend some would say. whats the best way to deal with it. hes decided to not charge VAT on sales to get paid in his pocket. the police are not interested, I bet HMRC wont be bothered the tax is only a few hundred quid. is he entitled to go off with company money ?

the assets are worth £100,000 but now they apparently are not owned by the limited company, they were though when I was paying for them. clearly a con man.

Any advice appreciated.,

thanks

steveeasy

[Amethyst]

Re: Partnership problems/what to do

You have an agreement, in writing, which gives you a 50% share in the company assets ( est of £100k) AFTER paying £500 a month for 7 years? or makes you a 50% shareholder in the company now ? Would need to see the agreement really to have any idea if that agreement is 'worthless' or not.

What are/were the company assets ? How are/were they owned ? What made them part of the business ?

The joint account presumably only needed one signature?

Was the company registered for VAT? ( seems unlikely if the VAT was only a few hundred and the company so new)

The company has been running for only a couple of months. You've given him £1500? plus money for materials ? how much?

Are you going to continue with the business ? or wind up the Ltd company ?

Also were you actually a Ltd company or a Partnership ?

Are the rent and rates bills for the business ?

[steveeasy]

Re: Partnership problems/what to do

You have an agreement, in writing, which gives you a 50% share in the company assets ( est of £100k) AFTER paying £500 a month for 7 years? or makes you a 50% shareholder in the company now ? Would need to see the agreement really to have any idea if that agreement is 'worthless' or not.

What are/were the company assets ? How are/were they owned ? What made them part of the business ?

The joint account presumably only needed one signature?

Was the company registered for VAT? ( seems unlikely if the VAT was only a few hundred and the company so new)

The company has been running for only a couple of months. You've given him £1500? plus money for materials ? how much?

Are you going to continue with the business ? or wind up the Ltd company ?

Also were you actually a Ltd company or a Partnership ?

Are the rent and rates bills for the business ?

we set up a ltd company for which I was to start a 30% shareholder in. the profits were to be divided equally from start. the agreement we both signed but not witnessed was I would pay £500 per month until I had paid £45,000, this buying me a 50% stake in the assets of the business estimated at 90-100,000.

the assets were factory machines, welders presses, lathes etc. I paid for a one account online in joint names as my partner had bad credit. Yes it was VAT registered as I wished to reclaim VAT. I am apparently now not allowed to continue, my partner has locked me out of the original premises, the new premises have been emptied.

we have set up a ltd company with 2 shareholders. he has 70 shares, I have 30 shares.

He phoned the bank made some allegations about me. they closed the account. he then went to the customers and said leave the VAT out and pay him direct. I wrote to one saying only pay the Limited company for which they had been supplied a VAT invoice, even though we could not bank it, but he told me others paid him. Ive asked him if they have and he will not respond.


Steveeasy