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Advice about business buyout needed

(5 Posts)
99luftballoon Sat 29-Dec-12 13:26:56

Hi. I need some basic advice to see if this is fair.

DH owns a company with a partner (BP). It is 50% share each and is a limited company. It has been in business 4 months and is making a loss at the moment where we are having to top business account up every month. DH is owed about £6000 for start up costs, BP has put in about £5000. We think BP may want out as business going so bad. We are confident that it will be successful in long run. There are no assets as such as we have provided most equipment and material for business. We provide a service rather than a product so there is no stock. Would it be fair to offer BP the money he has invested to buy his share.

We cannot afford to go to a solicitor and winding up and restarting is not an issue.

99luftballoon Sat 29-Dec-12 13:29:48

I have posted about this previously due to BP not pulling his weight, and I appreciate all of the advice from that thread too smile

RedHelenB Sat 29-Dec-12 15:19:38

At the minute all BP has is half of the debts so if you can afford to offer his investment back I've a feeling he may well take it!

Lonecatwithkitten Sat 29-Dec-12 15:40:14

Make sure you purchase his shares and complete a correctly registered transfer so that he can never claim dividends.

prh47bridge Sat 29-Dec-12 17:52:13

It is impossible to say whether or not that would be a fair offer without a lot more information. What matters is whether or not BP will accept it. He may be happy to simply get his money back or he may feel that he should get some return on his investment.

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