I am a 51.25% Owner a New Jersey company which is a Franchisee for 7-11.
Company was formed and started in 2007.
I had entrusted my partner with my initial expenses, which he reported $416000.
In spite of repeated requests, Till date he has not given me proper receipts for the expenses.
We have an initial agreement, which distributes shares based on this $416000.
But the agreement also says, if any time itís found that any partner cheated or misrepresented the company, then he must sell his shares to other partner at initial face value and get out.
Against our agreement, my partner also had involved his brother in the business, who stole case up to $50,000 by entering fake invoices.
We are supposed to deposit our daily sales - cash - into 711 corporate account.
My partner used to take this case and deposit a check from his other company.
This went on for nearly 1 year, maybe up to $70,000.
I have been afraid to take any action, as he is the registered Franchisee and I was a minority share holder .
But now Im 51.21% holder and fed up of him.
I also have proof now that he showed $87500 paid to 711, but only $63500 have been paid.
Is it too late to take action against him ?
As per our agreement, can I buy out his shares at initial face value ?