Hi, looking for a bit of advice as to what approach to take with a fellow director/shareholder...
We started a small online sales company this year which got off to a solid start and is turning over approx €3k per month with roughly 50% gross margins. Both directors took a 50% shareholding and I acted as a silent director (just a sideline for me, have a steady income from other company). The idea was to build up a few bob over the 1st 12-18 months and start taking the odd bonus/dividend and everybody is happy. We got a small business loan with an overhead facility and every thing was going along nicely until I recently found out that the loan a/c dd had bounced and we were almost €5k overdrawn. As it turns out, my fellow director has been withdrawing cash from the company visa to the tune of about 6 grand to fund his lifestyle! I feel like just resigning as a director and walking away however I'm reluctant to do so as:
1: The business has very good potential.
2: There is a personal guarantee from both directors on the business loan/overdraft.
3: Th original business concept was my idea.
I'd appreciate any advice on this (I'd really like to get rid of him from the company but dont want to get into any costly litigation) Should I just walk away from it and let him sort out the sht that he got us into??
We started a small online sales company this year which got off to a solid start and is turning over approx €3k per month with roughly 50% gross margins. Both directors took a 50% shareholding and I acted as a silent director (just a sideline for me, have a steady income from other company). The idea was to build up a few bob over the 1st 12-18 months and start taking the odd bonus/dividend and everybody is happy. We got a small business loan with an overhead facility and every thing was going along nicely until I recently found out that the loan a/c dd had bounced and we were almost €5k overdrawn. As it turns out, my fellow director has been withdrawing cash from the company visa to the tune of about 6 grand to fund his lifestyle! I feel like just resigning as a director and walking away however I'm reluctant to do so as:
1: The business has very good potential.
2: There is a personal guarantee from both directors on the business loan/overdraft.
3: Th original business concept was my idea.
I'd appreciate any advice on this (I'd really like to get rid of him from the company but dont want to get into any costly litigation) Should I just walk away from it and let him sort out the sht that he got us into??