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Minority Business Owner gets NO money

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Germanhoney

Junior Member
FLORIDA
I have a friend that is a minority owner in a dirt bike/atv repair shop. He owns only 15% of the company and has been a minority owner for 5 years now.

In this time he's only received about $2000. Half of that was parts for his own personal vehicles. He's asked why he's not getting any money when the majority owner drives brand new vehicles, goes on vacations and such. The majority owner claims they aren't making any money. Just breaking even.

My friend repairs about 5-6 rigs a week...average bill for these is anywhere from $400-500. That's just repairs and doesn't include people coming in buying new 4 wheelers or safety gear or parts.

It's a tiny little shop, no bigger than an average sized 1 bedroom house. The majority owner is constantly buying new parts and gear that he claims the customers are asking for but they've been sitting on the shelves collecting dust.

So my friend asked to see the books...see where the money is going but the majority owner claims he has no right to see the books since he only has 15% ownership in the company.

What can my friend do?? Is what the majority owner doing legal? :confused:
 


Hot Topic

Senior Member
Why should we offer advice when your "friend" is not concerned enough about the situation to ask for it himself?
 

Germanhoney

Junior Member
wow...I didn't anticipate that kind of a response. :eek:

Though I don't see why I have to explain the situation I will because I am looking for advice for him.

1) he works three jobs to support his family - one full time and one part time and then the job I had mentioned before.

2) he has no internet access at home so he can't check for a response the few hours he is home and not asleep.

3) he didn't know where to go for advice other than scheduling a meeting with an attorney..and per #1 he really has no time to do so.

I was doing this because I know how frustrated he is. He's put his savings into being a partner at a place he loves with the idea he would make some money. Now his savings has been spent and he has made jack since he became partner 5 years ago.

If you can't help..or won't help..so be it. I am just trying to help a friend out.
 

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