By continuing you agree to eChinacities's Privacy Policy .
Sign up with Google
Sign up with Facebook
Q: How to get rid of a useless business partner?
A local Chinese lady, my buddy owns the company, signed an agreement with her but she does nothing, we can generate full profit without her.
Waiting for suggestions.
1: Buy her out.
2: If she has no idea whats going on, move funds around. Make it look like its losing money and will need a huge infusion of cash to keep it going. Give her an out if she doesnt want to pay her share. If she does want to pay, once you get the money use it to force her out.
3: Pay an old man to tell her the feng shui with this company is bad. It will bring her bad fortune.
Swirl:
Get some Chinese guy to pose as an official from the Provincial Tax Bureau to come and visit the office and ask who the owner are because there is going to be some legal issues forthcoming and that woman will not want to be part of the company.
Who's name is the company in, hers? Does the company rely on her connections?
It might not be that easy to get rid of her.
Eorthisio:
My buddy's name, she is his relative that's why he involved her, now he regrets, she is useless, she has no guanxi.
Stiggs:
Then in that case she really is dead weight and any or all of the suggestions here should be considered.
1: Buy her out.
2: If she has no idea whats going on, move funds around. Make it look like its losing money and will need a huge infusion of cash to keep it going. Give her an out if she doesnt want to pay her share. If she does want to pay, once you get the money use it to force her out.
3: Pay an old man to tell her the feng shui with this company is bad. It will bring her bad fortune.
Swirl:
Get some Chinese guy to pose as an official from the Provincial Tax Bureau to come and visit the office and ask who the owner are because there is going to be some legal issues forthcoming and that woman will not want to be part of the company.
Here are a few more to add to Mike's already good list. Obviously they depend on if your buddy wants to keep good relations with her.
4. Get a lawyer to play around with words on a contract and tell her to sign it. Something like her share will be horribly diluted (like Mark Zuckerberg did to Edwardo Saverin) to make way for future public investment. Then buy out her low shares and give her the boot. If she has no connections she won't really be able to fight it.
5. Create a ton of issues for her that don't exist. I am sure she has to have SOME responsibilities in the company. Just create a ton of fake meetings and issues to burden on her. Make it look like she is doing such a bad job that she will leave on her own or offer to buy her out at that point (which she will probably take as it will become too ma fan for her).
6. If she won't budge, do the Chinese method... hire a bunch of thugs to follow her around and scare her until she signs it away. I don't recommend it, but that's how Chinese handle their issues sometimes lol.
Reading your question and your comment to Stiggs I can derive from it that your buddy signed an agreement with a relative and now regrets that.
As they are both Chinese so I assume that both want to keep good relationship as only very small percentage of Chinese will want to become independent from her/his family.
It means you can forget all the legal ways and any tough biz measures.
I suggest you ask your buddy if the relation to the relative is important. If it is (what I assume) so let him/her handle it - very small chance for you to assist as long as you want to keep the relation to your buddy.
If not so it's very easy business process of agreement cancelation (certainly concluded under Chinese law what makes it easier).
But you shall always keep in mind that Chinese way of contract understanding is different from the Western one. Chinese like to say: 'Contract is dead but the people are alive'. By this they mean the relationship is more important than the contract - therefore I assume the best is to leave in your buddy's good hands.
jetfire9000:
Reading your comment I can derive that you derived that his buddy signed an agreement with a relative and now regrets that.
You can take some business connection that you have built in this company and set up your own company or talk with her directly about the situation to make her agree on you hold more shares.
The one who creates the profits hold the power.
Feed her to the pigs Errol
icnif77:
'Do you know who I am? GOOD! That will save me some time....
...you gotta starve the pigs for few days......you gotta shave the heads of your victims, and pull the teeth out for the sake of the piggy's digestion......they will go through a bone like butter....you need a least 16 pigs to finish the job in one setting, so be wary of any man who keeps a pig farm .....'
Pay her a salary to stay home. Just negotiate it before hand. After that, you will have a free hand.
Pay her a salary to stay home. Just negotiate it before hand. After that, you will have a free hand.
Create a a new company that does exactly the same as you do now. Make sure the name is almost exactly the same (don't worry about rip-offs - no-one cares). Move all your customers over to it - you can do this by just contacting them with the new (almost identical) email addresses, etc etc. No-one will notice a thing until it's too late.
This is actually probably quite legal here in China... 
eg - Eorthsio - instead of Eorthisio.. (or maybe make a 'o' an '0' or something...
And, yes, I know it's not yours - I'm just using an example).
We're onto movie scenarios here.u have to have a chinese partner in china to do biz u can never have majority ownership and if she says u owe her money your passport will be taken away till the case is settled it could take up to 5 years your in china
