I started a company together with 2 friends and each has equal shares.
NO capital investment has been made by any member and the company has made NO profit at all.
However, for marketing purposes we started advertising in magazines and signed a 6month prepaid contract with the advertising company.
Each member contributed their share and we paid everything in full.
One of the members has decided to resign as a member and the other is following in his footsteps.
No contracts or agreements is in place regarding the contribution each member made towards the marketing and so there is nothing that states that if a member decides to resign that the contribution that he has made will be paid back on resignation.
The other two members has not been acting in good faith, or even attempted to benefit the company in anyway by involvement.
All progress that has been made within the company has been done by myself therefore with their resignation i can not afford to lose all the progress that has been made thus far with regards to marketing and prospective clients that has started to show interest now.
The company has only been starting to make a name for itself.
I feel that i have no obbligation to payback their contribution towards the advertising seeing that it was a contribution to introduce the company to the market and no documentation, agreements or even a verbal agreement has been made.
I do not want to close this company when it is just starting to show signs of success.
Please give advice on how i have to handle this because i really dont mind them leaving but i do mind giving back what is not deserved when they did not contribute to get the company started.