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What is the legal status of the company? A partnership, a corporation or what? Do you have an operating agreement or by-laws, or is it just a "gentlemen's agreement" as to the rules of operation?
No I am sorry is is an S-Corp. I am 50% shareholder, treasurer and secretary. He is president
He has twice as many sales as me, thus the dispute
Do you have an operating agreement or by-laws, anything that rules on what happens if one person "wants out"? There should be rules about non-competing and so on. Do you have anything like that?
No, I don't believe so
I don't really "want out" I actually love the business we have built
I do all of the non-sales work too. But I know that is probably irrelevant to a shareholder issue
But you said he wants to lowball your shares and dissolve the company. That's what I was talking about/
Yeah, between my mom and I, I have $11,000 in debt to the company. I have been floating the company along...
I have never been paid
and He is offering $7,000 to sign over all my shares
So the company will still owe me $4,000 plus sales commission
does your company have a rule against this? Usually one cannot just force someone out and dissolve a corporation. It is its own legal person. Who makes the decisions about payments and so forth? Why aren't you getting paid but he is?
I have been sacrificing for the company. He has a family and kids. I am single and living off savings
I paid his rent 3 weeks ago
You need to take a stand and tell him that due to the company owing you money, he will not receive a salary until you are paid off and then you need to make a firm agreement about the customer list (client list). If you have no operating agreement about non-competing, he can quit working there, still own the shares, but start another company somewhere else.
and instead of "thank you" he has taken over the company completely (once I taught his wife how to do scheduling and computer work) Of course I taught her not knowing as soon as they knew how to do my job they would cut me out of the company
Yes, I agree that would be the best solution. If he quits. Because I can run the company profitably while it is not able to pay his lifestyle
Unbelievably, this happens frequently. Is there a way you can get back in? Does his wife work there? How does she have access?
You need to stop funding him right away.
I know I need to take a stand, but he has now removed my password XXXXX our phone system (which I set up) and our customer database, scheduler
Oh I am definitely stop funding..
But assuming he really comes up with $7,000... I don't know if I should just take it. Even though all my sweat equity is gone
And theoretically he will continue to pay the remaining balance and sales commision
You can consider a civil lawsuit, but it would cost money and you would get...what from him? it would not be worth it. I think you need to cut your losses and get rid of this creep. You have the know-how and start your own business with employees and a firm set of rules and contracts.
Yes. Thanks. I agree. I really am handing this guy a ton of value but if he is not careful he will lose it anyway..
Oh I must go
I wish I had a law to point to to "get him" but it sounds as if he's wrecked your business and that's what honest people get out of working so hard, sometimes. He's a jerk and immoral, cut your losses.