Q: I co-own a medical supply company me and my associate. We both contributed the same amount to start up the business.
Well the company ran on hard times. My associate took out a loan to pay some debt. However our company paid the loan back in full not him. No money left his account. So now he wants to switch owner ship from 50 and 50 percent. To him 90 percent and me 10 percent ownership. Just for the risk of him taking out the loan? I need help please
A: This does not sound like a very good deal for either of you. If he borrowed the money to bail out the company that you jointly own, and if the company repaid his loan out of company earnings, then he "paid" at least 50% of the payments because he owns 50% of the company. And you also paid 50% too. However, since the company probably would have gone under had he not rescued it, both of you would have lost everything. So it looks like he can rightly claim some amount of ownership more than 50%, but not the 90% he wants. How about a compromise at, oh say, 70-30?
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