Hi,

I am involved in a new start up. There are 2 directors of which I am one.
I own all the shares in the new business.
The start up has been registered for 7 months but is dormant and has never traded. The balance sheet and P&L are completely blank.
There are no employment contracts in place for either director, this was an entirely speculative project that has not lead to anything.

I would like to dissolve the business and go seperate ways.
The other director is trying to claim her expenses which have not been agreed, and any such expenses (if there were any?) were incurred by both parties knowing full well this was a speculative project with no means of recourse.

What is the position with the other director, she does not have shares in the business, there is no arrangement for recovery of expenses, and the spirit of the agreement was for us both not to burden the new start up with any such costs.

I will disolve the business, but could she have any claim on a company which has not traded. Her work was negligable, of no value, and not agreed upfront.

Thanks for comments
Z