Need Advice on Problems in a Business

hoot72 · 10-24-2008, 05:03

Guys,

Not sure if anyone has some good sound legal advice.

My brother and me are at loggerheads; I have shares in a small jeans and fashion store in Perth that is making money but is being picked apart by his wife and its affecting our ability to apply for more bank facilities and we need more capital pumped in to be able to buy stocks for the coming festive season.

1) Our share's in the company are worth AUD$150,000.00 each.
2) Our annual profit from the company is AUD$85,000.00 per year
3) His wife, because they can't get along and are not on talking terms, come's into the store, and demands cash from the till and claims for items, travel and so forth that is not allowed by him as managing director. She passes the reciepts, the cashier gives her the money or she makes a huge amount of noise scaring away customers
4) She has taken, over the last 4 years, AUD$600,000.00 in cash from these claims without his approval.
5) She is entitled (as are we both) to AUD$2000.00 in director's fees, AUD$1000 credit card allowances and AUD$1000 in allowances for a car per month. Thats only about AUD$50K per year and over 4 years, thats AUD$200K each.

She has clearly taken more than she is entitled to and whenever he asks her officially and unofficially to stop, she tears the memo's to her in front of him or tells him to piss off.

She is clearly out to destroy the company and couldn't give a damn when I talk to her or try to convince her to stop it.

The banks want to know why we are paying out so much to her and affecting the books. Have asked him to make a police report or get legal advice on how to stop her but he keeps telling me he can't do anything as she is still a shareholder.

I don't know what the hell to do because its killing the business and its affecting the moral of the staff.

Is there any advice anyone can give from a legal stand point whereby we/i can apply to have her removed as a shareholder for abusing company rules or regulations because the amount of cash she has taken is substantially more than what her/our shares are worth?

I am really at an end as far as what to do as I depend on the director fee's to help pay our home loan and part of me and my wife's car loan and the business will probably need to be sold if we don't get this stopped (her taking cash).

**Pete** · 10-24-2008, 06:19

To be Family sucks sometimes.

Time to move from family to business. Time to go see a local lawyer that does business law.

Get it stopped one way or the other. He is on your side or her side, have him make the choice.

But see a lawyer.

Paslode · 10-24-2008, 07:52

I had a similar experience.

It sounds like your wife, like mine thinks she is entitled. She has no idea, nor does she care about how a business is run or how you and your brother are accountable. She is also disrepecting you and putting you in the middle, same as mine did.

My wife would take money out of my business account and wouldn't record it. I couldn't tell you what she took or if it was more than reasonable or not, I can't tell if I was profitable during that period either. And it doesn't really matter, it should have never happened and she knows it.

My Solution, I opened a new account and she doesn't have access to it.

If she is named as part of the company I would get her removed.

If she ia a signator on the bank accounts get her removed.

An honestly family or not, if she is robbing the cash box I would get a restraining order to keep her out of the store and if she keeps it up I would file charges.

Business is business and family comes second.

Also ask yourself what would you do if it were your brother and not your wife.

And like Pete said, go talk to the business lawyer.

10-24-2008, 07:55

Quote:

Originally Posted by hoot72

Guys,

Not sure if anyone has some good sound legal advice.

My brother and me are at loggerheads; I have shares in a small jeans and fashion store in Perth that is making money but is being picked apart by his wife and its affecting our ability to apply for more bank facilities and we need more capital pumped in to be able to buy stocks for the coming festive season.

1) Our share's in the company are worth AUD$150,000.00 each.
2) Our annual profit from the company is AUD$85,000.00 per year
3) His wife, because they can't get along and are not on talking terms, come's into the store, and demands cash from the till and claims for items, travel and so forth that is not allowed by him as managing director. She passes the reciepts, the cashier gives her the money or she makes a huge amount of noise scaring away customers
4) She has taken, over the last 4 years, AUD$600,000.00 in cash from these claims without his approval.
5) She is entitled (as are we both) to AUD$2000.00 in director's fees, AUD$1000 credit card allowances and AUD$1000 in allowances for a car per month. Thats only about AUD$50K per year and over 4 years, thats AUD$200K each.

She has clearly taken more than she is entitled to and whenever he asks her officially and unofficially to stop, she tears the memo's to her in front of him or tells him to piss off.

She is clearly out to destroy the company and couldn't give a damn when I talk to her or try to convince her to stop it.

The banks want to know why we are paying out so much to her and affecting the books. Have asked him to make a police report or get legal advice on how to stop her but he keeps telling me he can't do anything as she is still a shareholder.

I don't know what the hell to do because its killing the business and its affecting the moral of the staff.

Is there any advice anyone can give from a legal stand point whereby we/i can apply to have her removed as a shareholder for abusing company rules or regulations because the amount of cash she has taken is substantially more than what her/our shares are worth?

I am really at an end as far as what to do as I depend on the director fee's to help pay our home loan and part of me and my wife's car loan and the business will probably need to be sold if we don't get this stopped (her taking cash).

Hold an emergency stockholder's meeting and vote her off of the board of directors.

Instruct the cashier not to give her any more money from the cash drawer, (if he/she does then fire them) board members and or stockholders legally can't demand/take cash from the till.

Run, don't walk, to a competent business law firm.

Your brother sounds very pussy whipped.

Bear043 · 10-24-2008, 16:01

Accidents happen in the home and workplace all the time; who knew that the pressure of flushing the toilet (luv, WC, latrine) could generate enough pressure to suck her small intestins out her rectum??????? Just a passing thought.

Bear(043)

AngelsSix · 10-24-2008, 16:12

As a woman..........I AGREE!! Do not let this continue. Get a court order if need be. Also, quietly opening a new business account at a different bank which she will not have access to is important. The banks needs to be aware of the problem. Any business associates also need to be advised that she is no longer to deal with anything to do with the business. I am probably repeating a lot of what the others have already said, but I believe that women should not be allowed to just take advantage.

Red Flag 1 · 10-24-2008, 16:15

hoot72,

Is this business in the USA, or Brunei?

RF 1

Gypsy · 10-24-2008, 17:44

Quote:

Originally Posted by Paslode

I had a similar experience.

It sounds like your wife, like mine thinks she is entitled.

...

Also ask yourself what would you do if it were your brother and not your wife.

And like Pete said, go talk to the business lawyer.

It's his sister in law, not his wife.

The woman is robbing you blind hoot, definitely get a lawyer and stop it. I hope it doesn't ruin your relationship with your brother, but damn I know I wouldn't go broke or allow a business to fail because of my brother's spouse.

Paslode · 10-24-2008, 17:57

Quote:

Originally Posted by Gypsy

It's his sister in law, not his wife.

The woman is robbing you blind Paslode, definitely get a lawyer and stop it. I hope it doesn't ruin your relationship with your brother, but damn I know I wouldn't go broke or allow a business to fail because of my brother's spouse.

A separate bank acount solved my problems as far as the business goes, it none the less continues to be an adventure in other areas.....but my number one goal is my kids continue to have smiling faces.

Gypsy · 10-24-2008, 18:04

Quote:

Originally Posted by Paslode

A separate bank acount solved my problems as far as the business goes, it none the less continues to be an adventure in other areas.....but my number one goal is my kids continue to have smiling faces.

I'm sorry, I meant for that last part of my response to refer to hoot...not you. My post is corrected.

That said, glad your business problems are solved...good luck with the rest.

10-24-2008, 18:19

Quote:

Originally Posted by Bear043

Accidents happen in the home and workplace all the time; who knew that the pressure of flushing the toilet (luv, WC, latrine) could generate enough pressure to suck her small intestins out her rectum??????? Just a passing thought.

Bear(043)

Is that what Teddy Kennedy did to you?

hoot72 · 10-24-2008, 19:32

Quote:

Originally Posted by Red Flag 1

hoot72,

Is this business in the USA, or Brunei?
RF 1

Its in Perth actually but I am living out here in Borneo (across the border from Brunei Darusalam.)

hoot72 · 10-24-2008, 19:38

Quote:

Originally Posted by Gypsy

It's his sister in law, not his wife.

The woman is robbing you blind hoot, definitely get a lawyer and stop it. I hope it doesn't ruin your relationship with your brother, but damn I know I wouldn't go broke or allow a business to fail because of my brother's spouse.

Agreed. Which is why I have engaged a half decent lawyer and am getting the auditor's to go back and account for every single claim and cash demand she has made for the last 3-4 years.

My brother doesn't seem to have a clue what to do anymore or how to get out of this mess; its obvious he now finally realizes what he should have done sooner. His lack of control from the start allowed this to get worse and worse without my knowledge and now, I am trying to save what I can.

I just wonder if someone has shares in the company worth x but takes cash and advances without the permission of the managing director thats more than what the shares are; does it mean they have to return the cash or can you negate or cancel the value of their shares?

hoot72 · 10-24-2008, 19:45

Quote:

Originally Posted by WCH

Hold an emergency stockholder's meeting and vote her off of the board of directors.

Instruct the cashier not to give her any more money from the cash drawer, (if he/she does then fire them) board members and or stockholders legally can't demand/take cash from the till.

Run, don't walk, to a competent business law firm.

Your brother sounds very pussy whipped.

Understatement of the year. I can't believe he has folded and given in to the wife. Its sad to watch them both arguing the way they do; its embarrassing to say the least because the things she says to him point blank in front of the staff.

No person (male or female) should be treated that way or had that sort of stuff said to them, after 20 years of marriage.

Its sad but, he has only himself to blame. And no one else.

I am just doing what I can to salvage what I can from the business and hope to put a stop to this.

82ndtrooper · 10-24-2008, 22:26

Deleted by Richard - the poster's title says it all.