Asking for a friend ( Business Question )

Fringe

Fringe

Fringe

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My Friend owns a Company with another person ( 60% vs 40% ) my mate who owns the larger proportion of the company has been trying to take the business to new hights but has received a message from his business partner today asking for a meeting on Wednesday. stating that he wants to discuss the Future of the business and as it stands he is not happy with the way the business is being run / his current position. My friend has messaged him back saying that he is busy on a job on that morning and the meeting must happen at 9am on Wednesday.

So the question is , from the sounds of this message he is bringing someone with him to the meeting and that's why it must happen at that time. is my friend able to dismiss the person that turns up with him as its a business meeting between directors or walk away stating that he does not wish to discuss things with someone that has nothing to do with the company ?

what steps should he take with this ?

He has been running the business fine for 6 years hand in hand with his business partner but he has had to pull more of the pressure towards himself as there have been a lot of decisions made by his business partner without discussion.
 
reddit is pretty good for these sorts of thigns tbh
but yer i think he shoul be getting proper advise.
also depends on what contracts are in place and agreements made. it sounds like its going to get messy
r/LegalAdviceUK/
r/LegalUK

i would stall untill you talk to some one. make sure he does not agree to anything verbally
depend who the 40% er is bringing.
make sure to have books ready for finacnes
email coms on things like business plans ect
showing what invivlemnt both parties have had and oppatunities - or lack of
 
Last edited:
shifty_uk said:
As above.

Your friend has the right to the meeting agenda and to know attendees.

Beyond that, you’ll need to write a cheque to get the other shareholder out of the business, that’s just how it works. I’ve been there.
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TBH my mate is wanting to sell his 60% but needs to have a job lined up ready for it. i think the thing is he is worried about is that he has no idea what hes walking in to.
 
Fringe said:
TBH my mate is wanting to sell his 60% but needs to have a job lined up ready for it. i think the thing is he is worried about is that he has no idea what hes walking in to.
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I wouldn’t worry about it, he has the right to refuse the third party being there.

Ultimately, the other shareholder will need to buy your friend out at an agreed price if that’s what he wants.

Speak to a solicitor though, they’ll check the articles of association and any other agreements to see if there’s special conditions but tbh, it doesn’t sound like there will be.
 
i have spoken to him to feed back hes going to the meeting and will not agree to anything.

on the flip side of this it came from a phone call last night where he said the phone call was heated between both parties about staffing , my friend in the heat said i own 60% of this company you need to respect that. he was then told after the fact he would regret that and that he was on loud speaker ? seems off but interested to find out more.
 
to add on meeting then Cool head needed.
you can take a tape recorder and agreement form both parties to record the session for later reference. but its a double edge sword.
 
Hopefully they had the foresight to draw up a shareholders agreement before going into business together. Sounds like the minority shareholder is angling for either an exit or a buyout of the majority. As others have said, listen politely, agree to nothing and seek independant (ie, dont use your company legal rep) legal advice if needed afterward.
 
just because one person owns more of a company doesn't automatically give them the majority of the voting share.
I'm sure that was all agreed on who had how much of a say and on what issues when the company was setup or percentage sold to the other person.

personally I would go for the opposite tact and offer to sell the 60% of the business for x amount, that way the other person can put up or shut up.. that also gives you a figure to pay out the other person's 40% and they can't claim it's unvauled, if the 60% person was prepared to walk away for the equivalent amount.
 
So update after a lengthy chat with him tonight he's going in first with he wants to sell his 60% he said he's done with owning and running he's been offered an opportunity with a company he used to work for and he's going to take it. But will update on Wednesday once I know.


It's like a very bad drama film lol
 
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