If someone asked you to get into a business partnership with them and then business went sour, what would you?

Question

if you get into business with an inlaw, who asks/ invited you to join them with promises of 50% share and lots of profits to be made.

you leave your job, etc., travel overseas with your family to join them starting up the company. they tell you they feel God is in it and continue to promise lots of good things.

3 years pass nothing happens with the company. many mistakes are made. the invitor tells you your contribution is worthless though lots of your money/ time/ etc was spent. some advancement is made, but not much. overall it is a failure so far. 90% of the money spent was your money.

the inlaw then says he made a mistake and that god did not want you to join in the business after all. so give back the 50% shares, and the inlaw will take it from there, find new partners etc, to try to get back the money lost. if profits are made with the new partners, you are not entitled to anything anymore, except the money you spent on the business.

does this sound fair to anyone?

Answer 1

It doesnt sound fair. Did you draw up a partnership agreement at the start? If so stick to that and you might be able to get back what you put in. However, if there is no agreement 2 things could happed and it depends on how you bought into it. If you bought into it as a 50% share holder he can not kick you out because you have the same authority as him. You would be just as well to kick him out. If you bought in at 49% or less though, he is the controling share holder and he can basically do what he pleases. Although he cant force you to sell him the shares back, he could take you to court to do it. Unfortunaltely, as for the money spent, it doesnt amtter that they spent yours and not his. You bough into it and your contribution was spent. It stopped being your money as soon as you bought shares. Basically as it stands you can sell your part of the business back now, at what ever it is worth or hang on and fight to keep your toe in there. They dont sound like nice people so I would be tempted to fight all the way. If you beleive in the business, threaten him with the same and go get your own partners to buy in. Then if it does end up going to court, as the largest public investor who is willing to buy more shares, you might be able to turn the tables on them.

Fight the Power!

Good luck

Answer 2

Here's an article on buy-sell agreements and how to avoid such problems in the future

http://www.americasbestcompanies.com/blo...

Answer 3

Any business venture is a risk, and most

fail within five years.  It's very important

to weigh the situation carefully before

making the move.

No, it doesn't sound fair, but you took

a chance, and it didn't work out as

expected.

Learn from your mistakes, and move on.

Answer 4

No, doesn't sound fair, but life isn't always fair.  It sounds like time to cut your losses and get out.

Good luck.