Hi there,
I just wanted some advice on some things regarding a personal guarentee.
I went into business with a friend because he had an opportunity. We looked for finance and we had a few parties interested. He wanted to go with his parents money because he wanted to make them money in the business. In return they wanted us to take a personal guarentee for their money.
In return they get unlimited monthly payouts and 6% equity of the business. The persoanl guarentee gets wiped away once we pay half the loan from sales recieved.
The issue with it is that the other member has another directly competing brand. I knew about this but didn't how how much it would affect us. He has yet to tell the other shareholder in the other brand that he is doing this brand with me and his parents.
I am a bit worried now because
1) he would be technically in breach of his fiducial duties I am guessing. My interests are this business and looking after the investment, whilst my partner has two interests. This and the other competing brand.
2) Financially I could lose a lot because of this
I have yet to sign anything (personal guarentee form and shareholder agreement etc) and I wanted some advice on this.
I didn't need to take on this business or was forced. I did it because it seemed like a great opportunity and it still is. However a lot of things are out of my control and this puts me in a position of helplessness. everything in the business is in my name (bank etc) because the other partner had debt problems in the past.
I would be interested in hearing how people with experience would approach this. We have pretty much spent the capital on what we need so are getting to market fairly soon.
I just want to make sure I protect myself as things seem to be getting deeper and deeper and it's burning me out. I did speak to the other partner in an email explaining that if things with his other business were to cross the line with this one I had to make sure I am putting this business as a priority and as a director of this company I need to act in order to protect it. He came back and pretty much said I was blaming him. We have a generally good relationship but still I am kind of concerned.
What would be your view and approach to this?
Thanks,
Akira
I just wanted some advice on some things regarding a personal guarentee.
I went into business with a friend because he had an opportunity. We looked for finance and we had a few parties interested. He wanted to go with his parents money because he wanted to make them money in the business. In return they wanted us to take a personal guarentee for their money.
In return they get unlimited monthly payouts and 6% equity of the business. The persoanl guarentee gets wiped away once we pay half the loan from sales recieved.
The issue with it is that the other member has another directly competing brand. I knew about this but didn't how how much it would affect us. He has yet to tell the other shareholder in the other brand that he is doing this brand with me and his parents.
I am a bit worried now because
1) he would be technically in breach of his fiducial duties I am guessing. My interests are this business and looking after the investment, whilst my partner has two interests. This and the other competing brand.
2) Financially I could lose a lot because of this
I have yet to sign anything (personal guarentee form and shareholder agreement etc) and I wanted some advice on this.
I didn't need to take on this business or was forced. I did it because it seemed like a great opportunity and it still is. However a lot of things are out of my control and this puts me in a position of helplessness. everything in the business is in my name (bank etc) because the other partner had debt problems in the past.
I would be interested in hearing how people with experience would approach this. We have pretty much spent the capital on what we need so are getting to market fairly soon.
I just want to make sure I protect myself as things seem to be getting deeper and deeper and it's burning me out. I did speak to the other partner in an email explaining that if things with his other business were to cross the line with this one I had to make sure I am putting this business as a priority and as a director of this company I need to act in order to protect it. He came back and pretty much said I was blaming him. We have a generally good relationship but still I am kind of concerned.
What would be your view and approach to this?
Thanks,
Akira
Aucun commentaire:
Enregistrer un commentaire