I'm new to the forum so please feel free to move this post or let me know if I infringe any policies. I'm looking for advice as myself and my business partner can no longer work together. We both own 50% of a CC (training industry) but a financial dispute has forced us to re-evaluate things. I realise that a lawyer is probably the best option but I'd like any thoughts on options before I go down that (costly) route.
I basically invested 75% of the money needed to startup the business, and that was reflected in the books as a loan account. He has now recouped all of his investment, but I'm still owed approx R200k. The business assets amount to approx R90k, and our customers pay by debit order on a monthly basis.
The company doesn't make much profit, as the property lease and business expenses account for all but R8k per month (which is taken as wages).
The company has built a successful brand.
So, my concern is about how we move forward from here.
1. Liquidate. I lose my loan account, but I suppose the assets become mine as I'm a creditor? What happens to the brand, and regular customers - does it become a 'free-for-all'? Has anyone been through this sort of process, and was it expensive?
2. He pays off his portion of the loan account debt so we become equal partners in terms of investment and we try to work in the same premises, but on alternate days. Has anyone managed anything similar?
3. If he doesn't want to do either of the above, can an application be made to the courts to 'force' someone out of a CC?
I realise a lot of this depends on how much we agree on, and the solicitors will have to get involved, but has anyone been through anything similar?
Thanks in advance,