Back when you first started your business, you probably imagined that your fellow director was going to be a trusted partner, an indispensible asset, the Jay Z to your Beyoncé.
The honeymoon period rarely lasts long though. When you’re working together so closely, it’s inevitable that there are going to be times when you have differences in opinion. Sometimes, this can prove to be productive in terms of bringing an exciting dynamic to the working relationship and how you bounce around ideas. But occasionally, a whole host of other problems can rear their heads.
You’re passionate, you’re motivated, and you want to take things up to the next level. So what are you supposed to do when your fellow director doesn’t just isn’t pulling their weight?
If it were an employee, the process would be fairly clear-cut. You’ll hopefully have policies in place to tackle performance issues head on. However, when the problem is your business partner, things become a lot more complicated.
First of all, let’s not blow things out of proportion. It may just be down to a lack of communication, and it’s very possible that an open and honest chat could clear the air and give you both an opportunity to revisit your expectations, and then move forward with a mutual understanding of what needs to be done. Sounds easy right? Initiating the conversation can be tougher than you think though!
If this option has been exhausted, then there may be a need for more drastic measures. Ideally, you’ll have created a written Directors agreement outlining provisions for if and when this type of circumstance could arise, and buying out your partner could be one of those provisions.
As a last resort, dismissing a fellow director is an option, but you’ll need approval from more than 50% of any shareholders that you might have. Always refer to the legislation, and seek out professional guidance to prevent things from getting unnecessarily nasty.
Whichever option is best for you, it’s important is to take action ASAP. Dragging things out could have a serious impact on the rest of your workforce, they will pick up on your issues quickly and will soon start to feel nervous and insecure about the future if things are going wrong at the top, which will undoubtedly have an impact on employee performance and your business results. It may even affect your own or your business partner’s health and wellbeing.
If you’re having problems with a director and you don’t know what to do for the best, get in touch for a confidential chat. We’ll help you to understand your options, and guide you right through the process of deciding which route is best for you and how to make it happen.