To not want parents to give away half of my business?

[Bubs101]

First-time poster here! So go easy on me.

I set up a small consultancy business about 10 years ago and am doing quite well for myself now, however it hasn't been easy. My parents gave me an initial sum of £10,000 to help set things up, however, this was on the condition that they own 50%, which at the time I agreed to, as they were my parents and kindly invested in the business and me. 10 years later their initial investment has been paid off and they have been regularly receiving dividends, so have done quite well of the initial £10,000.

However, as I'm in a good place financially I asked them about buying back the shares they have, gradually, so I can have full ownership of the business, this was initially agreed that I would be able to do this when they first invested as my parents "don't want anything from me". But now this is where it gets tricky as they have now refused saying they are going to gift my brother the shares instead! As he is expecting his first DC (I have none) I'm shell-shocked and livid. My brother and I have a very complex relationship and he was physically and verbally abusive to me before I moved out, though he faced no consequences as he was the golden child who could do no wrong! My parents are aware of how I feel about my brother and we are virtually NC, except Christmas where we are civil for the sake of the family.

I'm just really upset by this and was wondering if there was a way I could stop this from happening. I've worked so hard to get my business to where it is, my brother is working but has always expected handouts and is naturally smarter than me but very very lazy so he earns about a third of what I do. I just don't want him to reap the rewards of my blood sweat and tears especially after how awfully he has treated me. I've told my parents how I feel but they are having none of it and have told me that they own half the business and are entitled to do with it as they please. AIBU in wanting to seek out some legal advice regarding this, I just fear my doing so my parents will cast me out.

[Calzone]

🤣🤣🤣

[ThumbWitchesAbroad]

Sorry about your BP, calzone but yes, I agree with you entirely! It was a very frustrating thread!

[Calzone]

ThumbWitches.... I’ve just read the thread and my blood pressure has gone up by huge amounts 😡😡😡😡

Omg. People are stupid.

[ThumbWitchesAbroad]

www.mumsnet.com/Talk/mumsnet_classics/2630932-Post-wedding-message-please-help-me-what-the-hell-do-I-say - here you go, Calzone - enjoy!

[ThumbWitchesAbroad]

It might be in classics, I'll have a look for you - see how you go!

[Calzone]

@thumbwitchesabroad


No I wasn’t 🤣🤣

I sort of want to read it now but I think my blood pressure might go up!! 🙄🙄🙄

[lilkitten]

Glad it is getting sorted. Unfortunately we have had similar problems with my FIL, business and family don't always seem to work. I can empathise, and hope this is a fresh start for your business.

[Teacher22]

Tell your horrible parents you will never talk to them again if they proceed with giving your business to your abusive brother.

[Dungeondragon15]

I'm really glad you have been able to sort this out but I am very sorry that your parents are so awful. Most parents would have stopped taking dividends and given you the shares back once they had received the 10K, perhaps adding a bit of interest but not more. The fact that they took 100k from you and still intend to profit from the shares is outrageous.

[Deadbudgie]

@russianwife are you the parents or the brother?

Op make sure you receive some tax advice re employment related securities re the purchase of shares to make sure you don’t get hit with an unpleasant tax charge esp when you come to sell the business.

Well done for standing up to the though.

[ThumbWitchesAbroad]

Calzone - - were you on the original "cancel the cheque" thread? It would have done your nut in completely!

[Calzone]

SCREECHES......

READ THE THREAD
READ THE THREAD

PLEASE JUST READ THE BLOODY THREAD.

[caringcarer]

I agree with many other posters. It is relatively easy to close down a limited company. You would need to set up another business in your name only where you own all shares and resign from the jointly owned business. With no one to do the work on a day to day basis your parents would have no choice but to close it down or get in another person to do the work. You could refuse to train them. You would still own 50% shares so if it made any money you would be eligible for a 50% share of dividends. You could offer to see your shares to your parents. If they would pay for them. If old business made no money then neither you or your brother would get anything. Advise all of your clients you are now going to set up new business and invite them to use your new business.

I was in similar situation when my first marriage failed. We owned 50% shares each. I was doing most of the work. My ex husband did little except spend the dividends. I tried to buy his shares but he refused to sell them to me. I tried to sell him my shares but he refused to buy them form me. After legal advice I resigned my position in company. I gifted my ex husband my shares. I set up in competition and took most of my clients with me. He kept a few at first but gradually lost them as they were no longer happy with service. After about 18 months he had to close business down and had not paid VAT or tax when he was supposed to. My business was very successful. Clear who had been doing all of the work. I was told I could not keep shares in old company and compete with it. I chose to gift shares as a service company so not much equipment so worthless without me.

[Dutch1e]

ralfeesmum she did get legal advice. It's all in the update

[ralfeesmum]

As many above - get legal advice pronto.

Why should your dodgy brother benefit from your hard work and effort if he's been less than fair and decent when you were growing up?

And if it gets nasty then so be it - both your brother and your parents are overdue a wake-up call of sorts. He needs to (finally) realise that life-handed-to-him-on-a-plate isn't an option anymore and your parents need to have their illusions about the "golden boy" well and truly dismantled.

Nobody will like it but when it's your damned hard work generating the money then some home truths are going to come home to roost.

Good luck.

[0nTheEdge]

Sorry to be late to the party, but just read your thread and went from being heartbroken and frustrated for you to being so happy for you in the space of a few minutes. This is mumsnet at it's finest, people giving others the advice and handhold to do big things. I know it's not worth much and I don't know you, but I'm so proud of you! I hope everything goes well for you with the move, your business and your family.

[Zwischenwasser]

Did you cancel the cheque OP?

[Dutch1e]

expat101 she did. It's in the update a few pages back.

Well done OP, I've been following this thread and am very glad you've come to feel in control of the situation. Wishing you much success

[bpirockin]

Great to read a positive update. Families eh?! Well done for standing up for yourself and what you've worked hard for.

[Calzone]

I give up 🤷🏼‍♀️

[Mixedupmummy]

I read your OP ages ago and it popped into my head the other day. so glad it's resolved for you!

[Trinnidad]

Listen to what @fairgroundsnack said, this is the simplest and best response on here, so I won't add anything else.

[NotBeforeCoffee]

I don’t understand how you’ve paid back the initial loan yet they are still getting dividends? Surely it was either a loan or an investment, can’t be both?
They have really taken the piss. You sound lovely op, you don’t need any of these horrible people in your life

[expat101]

That's terrible of your Parents to even consider doing that! Could they be under some sort of pressure from Brother to manipulate you like this? Do they think if they gift him their shares in your business it gets him off their back financially? What is their thinking/logic?

Sounds to me like its another way for him to be a controlling freak. You need to cut some ties and put all three of them at a distance for your own peace of mind and future financial security.

Lawyer up!

[Oblomov19]

Good God OP. I deal with Legal and shares issues all the time.
This is horrendous. Please sort this. In your own interests. Because clearly they don't have those at the centre of their heart!