Partner charging too much to company, allowed?

Director charging company alot for Facilities

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Hi all, 

My partner and I are 50 50 partners, but he is the director, and has other business, recently we move the buiness in to one office space, he suddenly started charing the comapny £5k a month for "facilities" and not rent. we have a small company with 3 office staff, we were paying £600 a month in our old place. Is there anything I can do about this. He is taking all the profit into his other company which owns the lease this way. 

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By bernard michael
12th Feb 2024 10:16

How many signatures are required on cheques?? If 2 don't sign the cheques paying his invoices.

What does the partnership agreement say ??
I ask this tongue in cheek as I think I know what the answer will be

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By paul.benny
12th Feb 2024 10:42

If you aren't happy about the decision, you need to discuss with your co-director. The law rarely interferes in business decision-making like this.

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By fawltybasil2575
12th Feb 2024 17:23

@ Adrenalinrush (OP).

Have you questioned your "partner" (I assume you refer to domestic partner as opposed to a business partner) as to the reason for their his actions re the £5K per month ?

Frankly, as a general comment, it will be highly beneficial to you to do a little research (readily googled) on the subject of "The Rights and Duties of (i) Shareholders and (ii) Directors" - it is a very wide field but a little research will assist when you take the first necessary action (within the next two/three weeks) which is a meeting with a solicitor -in making such request you should ask that the person you see has recent and material experience in contentious company law matters.

Prima facie, and in intending no offence there is insufficient information to enable me to assess the gravity of your situation, the facts in your question cause me some concern.

Importantly, you (and the company law solicitor) should be taking at least a 5/10 year view of how your rights might be adversely prejudiced by your partner's current and future actions. Such view will probably enable steps to be taken, in order to protect your interests, re (inter alia) you and your partner's respective shareholdings; changes in the directorships; salaries; dividends; and much more (a material factor is the proportions of benefits, to the company, derived respectively from the work of each of you).

Basil.

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