Does my business partner have ownership in my company?
I told a friend of mine that I was going to start a publication in another city. He informed me he was moving there and would like to be a part of the new business. I have the experience in publishing--he in sales. I drew up an agreement that stated his duties and mine. I told him this was not good timing for me because I was publishing a book that would keep me from concentrating on the magazine for some time. He begged and assured me he would fill in until I could move there. Well...you can guess what happened. I set it up, put up the money, got loans to pay printers and worked with the designers and writers and advertisers after 8 months he claims he is 50% owner and took checks out of the post office box and created an new bank account and deposited the funds that were to pay the employees. I opened the original account and he was put on the signature card later. The account he opened has the first name of the publication that most people put on their checks instead of the whole name that is registered to me. The company is a corporation in my name only with no stock issued to him. Is this stealing?? In the agreement, he was to get commission on sales and when the magazine was profitable, he would get 40% of net profits. We just started having a little money left over to pay him over and above his commission and he is trying to take the company over. The advertisers have a relationship with him more than me because he lives there and I do not. I am so mad at myself for not being more careful. I need advice. My attorney says to sue him but it would cost over $10,000. Any ideas??
Sign In or Register to comment.