business relationship went sideways ltd co advice please

[233]

right bit of background,

set up a ltd co with a good friend of mine approx. 4 months ago, all was well up until last month and we had a disagreement about the amount of money he was taking out the business. result being a message from him stating hes not prepared to continue working in an environment where he feels belittled(I accused him of being shortsided for overpricing work) short term cash rather than builing relationships long term with clients. and removing more money than prudent from the co

he stated last week that he was planning on sitting on the back bench as a 50% shareholder and director. stating that he would source his work elsewhere and not take work away from the business. we called a meeting for tonight to discuss this either a resolution or buy out.

I was informed earlier this week that he has started working for one of our local competitors and this morning noticed I had been removed in all capacities from one of our facebook pages. I locked down all our other facebook pages removing his access as well as our own internal system which he has access too. bear in mind he has already stated he is no longer working for the company day to day and is now working for a rival company.

cue this evening our website going down and a message from him that he has taken the website down and wants £5000 to buy him out and will return our website once we "sort something out". we do a small but not insignificant bit of work which is gained from our website. I have spoken to our web developer (who happens to be the brother in law of my business partner) who does not want to get involved but still has not restored our website.

we have a number of issues,

firstly
we have a verbal agreement with a 3rd party to take a 20% stake of the business for £5000 the 3rd party works with us and has already made payments towards this figure totaling nearly £2000 and is owed a further £2000 by the company. business partner is refusing to honour this saying hes not paid in full so tough its not a valid agreement( verbal agreement between the 3 of us)

my business partner is refusing to answer questions relating to work he has supposed to have invoiced meaning we cannot get money that we are due I have asked for copies of invoices and been ignored.

we have a few liabilities 3 year lease on premises 24 month contract for phone and BB etc

all correspondence has been online and I have records (not that its worth anything I guess)


if theres anyone out there that can offer some sound advice or even can works in the legal profession and doesn't want an arm and a leg i'm all ears.

 

[233]

your right it is an absolute mess.

the 3rd business partner made a verbal agreement with us for a 20% stake in the business supposed to be a total investment of 5k and again a verbal agreement was made for this to be paid up on a weekly basis which it has been.

friendship is gone with him trying to stiff the third party. the business is still trading and has a decent turnover and a small profit left over every month. honestly don't know whether to take him up on the buyout and get out website back or tell him to ram it and walk or if theres another option

 

[233]

Can't believe you needed 3 investors for such a little amount of money.
Never ever go into business with friends.

Some great info above from others going forward.

wasn't about the money, more about supposedly securing the right person to come work with us and give them an incentive to come aboard.

tommorows going to be fun one that's for sure

 

[233]

Did you give any personal guarantees for the 3 year premises lease? If you did that is going to make it hard to just walk away and start again (which was my first reaction when I saw how old the company was).

No guarantees given,

Going to speak to the land lord about taking over the lease if I let the current ltd co go under rents paid up until Feb anyway