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Written contract for 15% ownership of a business, and 30% of access cash flow.

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Cloudpuncher

Junior Member
On 6/1/2012 I signed a written contract to run an automotive repair shop in Houston, Tx for 5 years. The contract said that I would obtain 15% ownership over the 5 years, and receive 30% of access cash flow, and the owner would sell the business in year 5 and give me a cash payout equal to my 15% ownership. Well this has not worked out to well for me at all! The owner has not tried to sell the business, and shared no access cash flow with me at all during the 5 years. When confronted the owner says there is now access cash flow, and does not seem to recognize my ownership as legitimate. We are now approaching year 6 in June. The owner has offered to owner finance the business to me, and put the 15% ownership as a down payment. The new contract has over valued the business in my opinion, and I don't want to make an even bigger mistake with this person. The owner has kept me in the dark about certain financials of the company. Do I have any legal rights at this point to my ownership or did I just waste 6 years of my life chasing a big carrot? The contract was written by the owner, and signed by both share holders, and myself. I am currently still running this business, and not sure what to do at this point......Thanks in advance for any legal advice.
 
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LdiJ

Senior Member
On 6/1/2012 I signed a written contract to run an automotive repair shop in Houston, Tx for 5 years. The contract said that I would obtain 15% ownership over the 5 years, and receive 30% of access cash flow, and the owner would sell the business in year 5 and give me a cash payout equal to my 15% ownership. Well this has not worked out to well for me at all! The owner has not tried to sell the business, and shared no access cash flow with me at all during the 5 years. When confronted the owner says there is now access cash flow, and does not seem to recognize my ownership as legitimate. We are now approaching year 6 in June. The owner has offered to owner finance the business to me, and put the 15% ownership as a down payment. The new contract has over valued the business in my opinion, and I don't want to make an even bigger mistake with this person. The owner has kept me in the dark about certain financials of the company. Do I have any legal rights at this point to my ownership or did I just waste 6 years of my life chasing a big carrot? The contract was written by the owner, and signed by both share holders, and myself. I am currently still running this business, and not sure what to do at this point......Thanks in advance for any legal advice.
Have you received any payment at all for running the business? If so, has it been enough to be considered a reasonable salary?
 

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