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ok, a relative of mine by marriage inherrited the family business years ago. her brother also inherited it. they both ran it and were very successful. but now, the brother has run the business virtually into the ground. the business has mounted incredible debt and the brother wants out. he want to sell his part of the business and move out of the country. this will basically leave the sister with nothing. can he do this? I know the company is incorperated so the company cant go after them. I dont want to see the guy "escape" but what can be done?
How can he sell debt.... If he does let me know, i would like to know how you sell - minus, negative, - 0....
I would think the best he can do is walk away...
I'll bite. Tony, selling a business depends on a lot of factors. What type of business is it? What is their clientel/customer base like? What is the debt built up for?
The brother could run up debt to replace equipment that needed it and that is the reason why the debt exists or he could have used the money to add onto his own house.
Also, I think your view on incorporation is a common, but incorrect, view. Your female friend can sue her brother if he is an officer of the company and uses the company's funds in anything other than the best interests of the company. If she is a shareholder than he has a responsibility to treat her investment with a certain level of responsibility.
What your friend needs to do is find an attorney and a good one. Tell her to not be lazy and go find an attorney and go after him if he has in fact abused his power in the business.
How can he sell debt.... If he does let me know, i would like to know how you sell - minus, negative, - 0....
I would think the best he can do is walk away...
What kind of business ?
I think they want to sell the building. Im not sure if there will be any business left by the time they want to sell. he doesnt really care about it and his sister does. he offered her to buy him out in the past but she didnt.
I'll bite. Tony, selling a business depends on a lot of factors. What type of business is it? What is their clientel/customer base like? What is the debt built up for?
The brother could run up debt to replace equipment that needed it and that is the reason why the debt exists or he could have used the money to add onto his own house.
Also, I think your view on incorporation is a common, but incorrect, view. Your female friend can sue her brother if he is an officer of the company and uses the company's funds in anything other than the best interests of the company. If she is a shareholder than he has a responsibility to treat her investment with a certain level of responsibility.
What your friend needs to do is find an attorney and a good one. Tell her to not be lazy and go find an attorney and go after him if he has in fact abused his power in the business.
its a shame because the business has been around for almost 40 years and is a staple in the community.
Tell her to counter his offer with an offer to allow him to walk from his debt obligations. Leaving without any debt obligations is a nice offer rather than leaving with debt hanging over your personal finances. That is essentially a "buy out". Otherwise as the other poster suggested get an attorney...this is no time to try and work this out as a personal family matter. This is business.
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