help and advice required

Discussion in 'Finance, Property, Law' started by Zag42, Oct 2, 2012.

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  1. Hi all,

    Not entirely sure this is the right place and I hope this post makes sense and someone is able to assist me.

    At the end of last year I was offered a partnership with a guy I subcontracted for. Things have seemed to progress well since January, although I am doing all of the work, whilst he provides the office and work space.

    The details are that I am actually in a partnership with his wife as (he says) he is a director of a few companies so doesn't want to add another (I now think, that this may not be the case and more to do with previous failed business's) I provide all the know how, ability and drive where he provides a roof over our heads so to speak. Despite my pushing it took months for us to set up a bank account, some of it down to lack of interest from my business partner, some of it the banks fault, during this time we accepted cheques as payment (didn't expect the application to take as long as it did.)

    Some cash payments and cheques were stored in his company safe, then transfered to a private safe without my knowledge. To cut a long story short, after some investigation by myself I have found 2 cheques totalling around £5000.00 have banked, but not in my company account. I am told the cheques are still in the safe.

    My concerns are this,

    1, A second bank account in the company name must be active without me as a director as a account holder without my knowledge.
    2, The cheques have been cashed at a payday loan shop or some such. Incedently no sort code is listed on customers bank statements.
    3, The lies about the money's whereabouts.

    So, where does this leave me? To get us started, stock was purchased through his company, so he is owed some money to pay back those initial purchases. No authorisation has been given by me as a director to cash those cheques, but even if it had they haven't been cashed in the company account.

    I guess the quick question is, can I confront him and tell him his behaviour is unacceptable and a breach of trust and as such no business relationship is now workable, and in so doing do I have grounds to leave with all my business assets intact, albeit his wife is a partner in the company?

    As I see it at the very worst fraud has been committed and could and probably should be taken further.

    I am all over the place at present with this and am crossing between anger, confussion and determination to get shut of dead wood!

    Sorry for the long post.
  2. You could call the Police?
  3. BiscuitsAB

    BiscuitsAB LE Moderator

    First you need to decide whether your a partnership or a ltd company.
  4. BiscuitsAB

    BiscuitsAB LE Moderator

    You could indeed but you may as well call the speaking clock. As of yet no crime seems to have been committed and even if one has best of luck with that.
  5. Its a Ltd company, should have stated that.

    I think I have a good case to tell him to ram it, cut my loses and re-start with the existing company assets such as bank account web site etc. If his wife wants to get involved with the running of the business then she can put on the table what role she can undertake, but as she runs a pub full time I can't see that happening.

    I reckon I hold all the cards here, and I can demand they both withdraw or I involve the authorities and make it all official.

    I just need confirmation on if I'm correct in my thinking or its just wishful thinking and I'm in a world of pain!
  6. BiscuitsAB

    BiscuitsAB LE Moderator

    Well you could ask the other director if they would like to resign. You don't mention anything about additional share holders.
  7. Its just us three, like I said she comes no where near the place.

    Its a little complicated with involving the authorities as he runs his own business where we share an office/showroom and workshop so I don't really want it to affect his business and staff. What he gets up to thereis up to him but I wouldn't want to cause lads to lose their jobs just yet. Me going with our "department" won't affect his other business.

    I guess my plan is to put forward all the evidence I have (when all in and time suits me) and leave them no option to fall on their sword. I'm sure if I start mentioning fraud etc to his wife then things will get really uncomfortable for him. I'm just unsure really if I have a leg to stand on, allthough I can't really see why I wouldn't have. I don't want to start asking questions with HMRC etc in case it gets out of hand as such too quickly and leaves me a bit stranded.
  8. His excuse for not being a director sounds odd. You can do an online search via companies house searching for his name or the registered names of the companies he is associated with. Also, if he has been disqualified from being a director, he will appear on their list.

    Companies House
  9. Does this not sound fishy to you, Zag?

    Perhaps he's a bankrupt and banned from holding a directorship?
  10. He doesn't hold a directorship in my company his wife does.

    He owns (or runs) a fireplace fabrication company and I fabricate Granite worktops. He has provided the machinery and factory FOC whilst we get established.

    However, with the issues highlighted above and the fact he doesn't actually do anything (he doesn't even answer the phone) I know I should kick him into touch and go it alone.

    Like I say I'm fairly sure he has no legal claim on the company assets and with his antics (or his wifes) I think I have a strong case to say, I'm off and you ain't stopping me, and I am taking all our gear as well.

    I just don't really know where to go to to get a definate answer, as if I do this (as I should) I don't want to end up with egg on my face due to some obscure law.
  11. Well, seek legal advice from a lawyer/accountant, and not a bunch of random dweebs on the net :)
  12. Just hoping someone may know of the right place to go for relevant advice rather than give me answers Tiny.

    Don't really fancy trawling the net trying to find the right place to look.
  13. Erm, it's easy mate ... A LAWYER! Preferably local to yourself :)
  14. I'd get some proper legal advice from a brief, you could end up holding the bag when it goes belly up.

    It doesn't sound kosher to me, how long have you known him.

    There are loads of checks you can make yourself but I'm a bit rusty. One I can think of is check if he is a banned drirector at companies house FAQs - Disqualified Directors Register .
    I realise he's not with your company but it will give you an idea of what his ethics are like or find out what companies he has been a director of.

    good luck
  15. I cannot understand why you entered into a limited company agreement with someone you clearly do not know, when you could have set up as a sole trader and paid for the services he provided. Do you have an accountant or 'does his Mrs do it'. If the latter, I would be seriously worried and whether she does nothing or works like a horse, she will be probably entitled to a wedge if you fold. Do you have formal contracts? It sounds like you are doing well in terms of income, why risk sharing it with some joker!Good luck in your venture.