Questions

My business partner and I have irreconcilable differences and we are definitely splitting. I have 50% shares in the private company but we have considerable debt to the government at 200k. The company however is doing better and better and should be able to pay off all debt within 2 years. meanwhile the company (paris based web agency) is working with bigger and bigger clients including in the luxury sector and with its rising profile will soon be very profitable. I however after trying my best simply can't participate in the venture. I currently receive remuneration (like a salary) every month and i want to keep that for 6 months as i start to wind down my work as the art director and launch my own consulting business. Can i ask for that? what else can i reasonably request? i know you can make any deal you like and each company is different. but as a general rule, how do these things generally take place? My business partner and co-founder has previously made errors that are borderline illegal and i don't agree with how he runs the company. i do not however wish to take control or stay in any capacity. I don't have to sell my shares yet but what would be the best way to transfer out of the company into my own company?

Terribly sorry to hear of the division between yourself and your co-founder/partner. I've experienced an ugly split with a partner and it's not a fun time. I'm not certain if you have a corporate attorney or not but it would be wise for the both of you to have a chat with him/her. My concern for you would be the debt (specifically to the government). As 50% owner of the firm, you are "on the hook," so to speak, and with the growing dissension between yourself and your partner, I'm inclined to believe that's a sour situation that could very quickly turn sour. If you truly want out, and this is just my opinion, I would check your Buy/Sell Agreement and strongly consider selling back your shares of the firm. Please do yourself a favor and speak with your attorney before this gets ugly.


Answered 5 years ago

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