Profit share investment query

Roziebzz

I recently took early retirement and with my lump sum, invested in my son-in-law and daughters business. I presumed that I would have some profits each month, but was told that the monies given each month were in fact my investment money being returned and that for me to get any profit it would be better for me to have my own business within their business. I went along with this and set up a business with companies house I have to pay them rental on rooms I use and wages for a receptionist who works for both businesses. I have become I'll with stress and have said I want to close the business and gift my product to them. I must sound stupid, but can't cope with it anymore. My son-in-law signed an agreement to pay back the small amount of investment money and I signed an agreement to keeping the business open but sending them all monies from it. Now though due to extreme stress I want to close it. Does the agreement stop me from doing so? Thank you in advance for any response. Hope someone can help.

eskbanker

Realistically nobody on here can answer that question as it's dependent on the terms of the agreement(s) that you signed.

I could be wrong but it does sound like an unusual arrangement that seems to benefit your daughter and son-in-law more than you - were you just signing paperwork they put in front of you or did you take independent advice for your business setup and the relevant agreements?

Malthusian

See a registered solicitor immediately. Random people down the pub will not be able to usefully help with this beyond moral support.

OldMusicGuy

Like the others said, this sounds really unusual. Normally to invest in a company you would buy shares which usually (not always) entitle you to some form of dividend from the profits. Alternatively, you would make a loan which would be repaid in an agreed manner.

Maybe you have agreed to some form of joint venture? In a joint venture, costs, expenses and income are shared between the JV participants in an agreed percentage split. JVs are between legal entities so this may be why they wanted you to set up a company and you are thus sharing costs.

You say you have some form of "product" that you want to gift them, so this seems to be more than you just putting money in (if I understand you correctly). Like Malthusian said, you need to see a solicitor to help you understand what kind of agreement you have in place and how you get out of it.