Starting is business with other two partners who did not invest


I started a business with two other partners who did not invest. It was decided that we will be equal partners in profit sharing. Other two partners will not get any salary but only equal profit sharing. They will start getting salary once they invest in the business. Then they will start getting salaries according to the recent market value. Thet wew happily agree but now after seven years they started saying that they want salaries from the day one and equal profit sharing as well. Till today they are withdrawing money according to their monthly expenses. Throughout the whole tenure i remained reluctent and I did not get any profit sharing because I have given them signatory authority.
My question is what it should be better solution to go ahead to keep on running business?
Do for they have not invested but claiming they have invested their precious time to set up business from scratch.


asked Jan 24 '13 at 16:37
6 points
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1 Answer


First, how formal was this agreement (legal document, letter, email, verbal conversation, "assumed")? That should serve as your reference. Secondly, depending on the geography, they can legally claim rights to minimum wag, going back to the day since they started.

Also, you say "invested" - invested what? Money, time, resources? All are quite important and you'd need to review your agreement from 7 years back.

Nobody can tell you if you should continue - it depends on the level of headache and your profits. I would get in touch with a local lawyer and explain this out. Usually the initial consultations are free.

answered Jan 24 '13 at 18:58
649 points

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