I have a partner who did not do what he said he would do. Now he has equity but is uninvolved. What do I do? I'm really wondering if I should just dissolve the company and start a new one, but worried of the legality of this. Not looking to spend $10,000+ on legal fees to challenge their equity shares.
It's not always a black and white situation. When there is conflict, it is ALWAYS the best way to start with a good casual meeting with the entity involved (bar, restaurant) and loosen up the pressure that normally both sides feel for that many reasons. You should first try to find a beneficial solution for both. You should try to understand what he feels his contribution to the current moment is, and what is the reason he is uninvolved. If he just don't have the time, or other reason, you should together find a solution to compensate both him for the contribution, and possibly you for missed opportunities. As suggested above, you can offer him a buyout valued at his contributiions, or if possible to split assets, and provide him with assets of that size.