I incorporated with a friend turned business partner, probably giving him too much of the company for the amount of work he was putting in simply because he was a friend. Since incorporation, he has become very unproductive, bordering on shirking off his business duties altogether. It's been about 3 months now, and I am looking to get him motivated to get his job done again. I've tried to give him the benefit of the doubt, giving him the chance to make up for it, giving him more to do, but it hasn't worked, and I keep having to pick up the slack.
Other things I've tried:
- Talking to him directly about it
- Setting deadlines (which come, and go)
- Having twice a week status meetings (recorded and emailed to both of us)
I want to give him credit for the work he had done prior to incorporation. After looking around, vesting his shares seemed like a viable solution, but I'm unclear as to whether/how I can do this after incorporation. (All the paperwork was filed, but I have never given him his actual stock certificate, if that matters at all)
Another suggestion I've heard is to forget about him doing more work and require that he put in more equity, but again, how can this be accomplished after the initial incorporation?
Needless to say, I should have thought about this beforehand, but that was my naive former self.
What are the options I have in this matter or am I out of luck?
My partner's % ownership was fair while he was being productive, but now that he has just stopped working, it's no longer right. Keeping in mind that incorporation papers have been filed and initial shares have been divvied up, I'm curious as to what I can legally do to remedy this and how to go about doing it?