Help needed

Discussion in 'Growing and Managing a Business' started by tigerlily, Sep 9, 2011.

  1. tigerlily

    tigerlily
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    Hello all, my name is Sarah and I am a new member here.
    My problem is this, my husband decided to go into business with a friend a few months ago. Very foolishly he signed our home as security, he has worked for 6 months and there has been no profit - he put no capital into the business.
    He wants to dissolve his partnership - he has 25% shares but 50% of the lease which our home is secured on.
    Advice gratefully received
    Sarah Masters
     
  2. MrPolarZero

    MrPolarZero
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    Hi Sarah! I'm also a new member here. I don't have any advice, sorry. I just feel sorry for what happened to you, I wish you luck. Hope you can find some help soon.
     
  3. searchsouth

    searchsouth
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    Sarah,

    My best advice to you would be to get in contact with a suitable legal expert. I wish I could offer something more constructive, but I would suggest that the situation sounds rather unpleasant and that relying on advice from unqualified individuals on an internet forum may actually make things worse, rather than better.

    Best of luck.
     
  4. sobi123

    sobi123
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    Sarah, this is not a little thing , just goto your family lowyer he/she tells you a good advice for this situation , good luck hope so you will get a good solutoin soon for this problem,
     
  5. patrick0001

    patrick0001
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    Hi Tigerfily, what is your husband partner decision? Your partner willing to continue the business alone or he agree to dissolve the business? If he agree, then you can offer him to buy back the 25% share.

    I guess, most likely your partner will agree to dissolve the partnership, because no one will buy an unprofitably business share, perhaps the business have great potential. If the partners not agree, then you find some free consultation from lawyer, but not direct appoint them, because it will burden your life. The business it self may be have some company assest, by selling that you might able to recover some capital

    Very foolishly he signed our home as security, no one will know the business will go loss, dont blame your husband, he is not willing to see it happen. Support and trust each others is very important to pass through the hard time.

    By the way I have a question, your husband sign up home as security to bank or others party? If bank, as long as someone pay loan interest it should be fine.
     
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  6. JBMedia

    JBMedia
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    Patrick has done a great job at covering your question. Unfortunately, putting 50% of your houses lease on the business is quite a risk these days. You said they had a partnership, which begs me to question why he only contains 25% of the shares. What does his friend own of the company, 26% and it is publicly open to the market for purchasing?

    If you're husband is wanting to get out of this business partnership, as Patrick has said, it can be done if his friend agrees to purchase the remaining shares, where you can get some income back from. However, I would HIGHLY advise getting a free consultation from a lawyer before even pressing on anything to much.

    As Patrick has said, whenever an entrepreneur starts a business, failure is not in their mindsets. Of course, failure is always possible though. I'm sure your husband had the best intentions when he did what he did, so pointing the blame will only cause more stress and headaches.

    Out of curiosity, your husband got a loan for 50% of your houses lease, if I'm understanding correctly. What did his partner initially invest into the business?
     
  7. Hurbel2k

    Hurbel2k
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    Get in contact with a legal expert.
     
  8. td2011

    td2011
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    Hi Sarah, how is the relationship of your husband and the business partner? is it too late for the business to be looked at by an advisor? You've probably looked at these options already, i'm sure things will work out. Just get some expert advice
     

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