I am a business owner in California with a problem: my co-owner/ex-husband. The original restaurants were started in Japan by my father, whom generously allowed us to franchise it to the US even though my husband was not qualified to start one. I am the president of the company while he is the VP. We each have half of the shares of the business. I do the accounting for the business; he orders things and delivers them to the restaurant.Now fast forward 20+ years, he leaves me and our four children for an employee. He petitions for a divorce, all we have to do left is separate the properties (aka sell them). Yet he constantly demands money even though our paychecks are the same, except I have four other mouths to feed. When I refuse, he then takes the cash from the business which now happens daily. I have tried many measures to stop him, to no avail.Two years later, the dilemma continues, except worse. I am trying to buy his share but he plays dirty. He told my daughter that he has potential buyers but I would be the first person he wants to sell it to, yet he refuses to meet with me or our corporate attorney (who had no idea my ex-husband had any intent of selling his shares). Recently, I found out that he is opening another restaurant with the same name without my approval even though I am the president of the company and an equal share holder. Our corporate attorney knows nothing of this.Is there any way that I can get rid of him or punish him legally?
You definately need to look at the legal stuff..
Have you got a written agreement with him explaining the partnership? if you don't have one he could get the boot.
I am not an attorney and recommend you seek the advice of a qualified one, but I will give you my opinion.
If your husband is an employee of the corporation and/or a Board member or officer, and he is taking cash from the business without authorization I would think you would be able to take action. However, you will need to be able to document or prove he is doing this other than just saying that he is or that you saw him do it.
You also may have a right to take action against him as a Board member or officer, or employee, for taking actions that would be detrimental to the business (corporation) and for unauthorized use of the business name.
I would seek the advice of a competent attorney in your area that is experienced in these matters and go over all these issues with them to find out what action(s) you may be able to take.
kmurray | Community Moderator |
11/1/2011 - 9:19 am
Hi,
Check out the second half of this article on our Business Law Advisor blog. It discusses some options about what to do if you find yourself in a bad business partnership.
If your attorney is not helping you in this situation, you may need to get a new attorney. You have rights, some of which should have been included in your articles of incorporation and by-laws when you registered the business with your state. It sounds as if your ex-husband is doing things illegally and you need to protect yourself and your interests in the business. A good attorney should be agressively helping you.
goody | Window Shopper | 9/7/2012 - 1:57 pm
jmay | Window Shopper | 2/7/2012 - 5:19 pm
rnfl | Performer | 11/6/2011 - 8:11 pm
kmurray | Community Moderator | 11/1/2011 - 9:19 am
BizResearcher | Window Shopper | 10/25/2011 - 3:25 pm
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