bit shocked

jkc

my sis has taken on a new biz partner, asking for 1500 for
his half of the biz, but hes paying in bits, and bats from the
profits. but whats concerning is the fact hes mentioned massaging
the figs in order to get a mortgage, and hes opened a business account
in the business name with out her consent.
any advice thanks

blobbyh

Worst limerick I've ever read: too many syllables and doesn't even rhyme.

(Sorry, couldn't resist...)

sharonj

blobbyh wrote: »

Worst limerick I've ever read: too many syllables and doesn't even rhyme.

(Sorry, couldn't resist...)

lol

The limerick packs laughs anatomical
In space that is quite economical,
But the good ones I've seen
So seldom are clean,
And the clean ones so seldom are comical.

Cullen

JKC,

My advice to your sister is to talk to her partner now, before she finds she is involved in something which she may later regret.

I would firstly challenge the partner regarding opening the bank account. Who is on the mandate? What type of account is it? If a current account, has there been any loans or an overdraft arranged? Is there already an account opened for the business? She needs to consider a worst case scenario, could the partner take funds or run up debt in her name? What safeguards does she need to consider? Both signatures on cheques or withdrawals? A maximum limit for values? If your sister is not happy with this bank account she needs to take steps to disassociate her business from this account. The bank should be able to offer advice.

Regarding massaging figures for the partner's mortgage: I would be very careful not to allow myself or my business to collude with this person. Your sister may want to review how much she needs this partner in her business. She needs to be very very careful.

blobbyh

Apologies for my first flippant comment, once again Cullen has shown me the error of my ways.

Essentially, I agree with Cullen. An investment of £1,500 isn't much from a partner who's bought himself a decent enough job title to (allegedly) help commit mortgage fraud and (possibly) defraud banks into parting with money. Have new company credit cards been applied for? The paying of the investment in bits and bobs also means there's very little risk from him now but potentially a great deal from your sister who could become complicit in any future trading irregularities, knowingly or otherwise (and let's face it, it would be fairly knowingly as she's already suspicious of "dodginess").

Clearly, alarm bells are ringing very loudly for your sister, for you and for us: doesn't that kind of say it all?

jkc

Hi
thanks, I really appreciate the advice, you have confirmed the seriousness of the situation. basically the business has only been running one year, no assets and no premises just
a small loyal customer base of about 600.
I advised against taking this partner on as soon as I heard the details.
the accounts been set up in his name and the business name, the bank want to see
evidence of activity in the account. The statements will go to his address. he also wants to
buy laptops, phones to increase assets as soon as possible.
The business hasn't even been signed over yet.
apart from the money he has paid ( which is dubious ) would he be entitled to any other
compensation and would there be legal implications if she decides to exit the agreement.
thanks again