So this investor has set me an ultimatum as he doesn’t believe anymore in me and my business and thus now wants to get his money back.
He either wants me to pick between paying him some day dividends, that I sell the company at some point or that I find another way to pay him back. Is that a legit request?
He only has 4% in the company and I hold more than 80% in it. There are no board seats and there is no specific clause on dividends. It’s an UK limited private company.
Do I really need to decide today if someday I want to sell the business or not? And if not, am I then forced to pay dividends to him or find another way to get him the money back? Does he really have any power to tell me what to do with the company? Can’t I decide that on my own?
What if I would indeed become some day a lifestyle business making 1M in revenue with no intention to go public or to sell the business? Would I then have an obligation to pay him back?
What are my obligations here?
[link] [comments]
from Entrepreneur https://ift.tt/2qYTq0w
Business News Live devoted itself to sharing articles about Business, Entrepreneurs and Business Matters. It is fond of sharing knowledge and experience on the blog, our main goal is to deliver interesting articles that is worth a reader's time.