Could someone advise me about my business please?
Question:
She has her cash & stock now, I cant understand why shes still clinging on?? could someone tell me if she has any legal ground, we never signed a loan/business shares agreement ?
Answer:
try citizens advice!
the problem is that no agreement was signed. if she was a friend then thats understandable. From the sounds of it, the monies from her should be treated as a loan and therefore she has become a creditor. in this case she would be entitled to her capital plus interest, but as no agreement was signed or made, then you could argue that its just the capital to be repaid. As you have already given her stock and cash to the value of the loan. she cannot demand anymore. She is not a partner and therefore not entitled to a share of the profits or remaining capital.
you could also argue that she loaned you the money personally and then you put it into the business as start up capital but this maybe a bit thin on the ground.
whatever you do, dont send her a copy of the accounts. she has no right to them as she is not part of the business and she hasnt filed anything to get the money back.
as far as you are concern she has been repaid and thats the end of the matter.
I would find a solicitor of firm of accountants if she pursues it further as they would of dealt with these kinds of disputes.
bottom line is she isnt a partner so not entilted of any other monies apart from the capital invested and she maybe able to claim interest at most so dont worry too much about it.
Was a legal note written with regard to the 'loan'of the £1000? I am thinking that is was possibly a personal loan to you unless there is something to say it was an investment towards the business. If it was, there is very little claim on the business for the return of the money.
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