A friend started a company with another person 1 year ago. This person has not contributed to the company and is unwilling to sell their shares without a settlement or to buy them out, the settlement is ridiculously high (basically making it impossible for them to buy). Legally he cannot start another company because he was told that it is against the company’s act/law to do so. It is something to do with a director acting against the good will of the company. He said that he is allowed start another company but not in the same line of work. (I don't know if this is even true)
He doesn't want to keep trading and putting money into this company if the person that is doing nothing is entitled to half of everything. This is why I would like to know what would happen if he liquidated the company or filled of bankruptcy.
Bit of a minefield I know but any advice would be warmly welcomed.
Roy