Can partners claim share of business?

[Pearofwisdom]

So my sister has a boyfriend. She borrowed a lot of money from my parents to buy a business (they own the property, she owns the business). Her boyfriend moved in with her as the business property comes with a flat above it. He also works in the business as an employee.

Her question is... if they ever break up will he be able to claim any share of the business?

Thanks

I don’t think so.

What sort of business set up is it? Company, limited partnership etc? My understanding is that if he’s “just” an employee he can’t claim anything re the business.

If he’s a shareholder in the company he may be entitled to dividends (depending on what the articles say) a limited partner could be entitled to their partnership share back if he wanted out or a share of the profits of he stayed in the partnership if they broke up.

I’d suggest your sister for legal advice in the event of a break up.

Be careful if they do break up and she fire's him it would be nearly a open and shut unfair dismissal case unless their was rock solid evidence of misconduct at work (or he has been employed less then 2 years their obviously).

Someone I worked with came unstuck with this she was a company owner employed someone, she then fell in love with etc etc 3 years later she dumped him and summary fired him and refused to give a work reference because he is my EX why not make his life hard. It bit her in the behind as he took her to tirbunaul and he won a large amount of money AND a forced glowing reference (he was a good employee).

So i would not really recommend employing or dating your boyfriend/girlfriend because it can become very uncomfortable if you do break up (and costly if you fire them/ force them to leave their job etc obviously excluding if they have worked less then 2 years)

Thank you very much 😊. That is a relief. He is not a partner or anything. I guess we were just worried in case He would have some claim as a long term live in partner. Thanks again and yes I have also told her it's not advisable but there's no telling some people!