Legal Advice on Investments and Capitals

Hi,

Me and my 2 friends started an online company that caters outsourcing services. As part of a starting company we invested our personal money in it and for me it was less than say Php 200,000.00. Now this company was registered in DTI under only 1 name and its under one of my friends name. There were no articles of incorporation and other formalities for partnerships filed since we trusted each other. When the business started running, I was managing it but did not have access to the finances of our first project. My partner stated that our income was just enough to maintain our overhead expenses and I believed him. Later on, we added few more accounts and under my management, we lost substantial amount of money. There were too many reasons but they both pointed out it was my fault and that I should be out of the company. Now, they wont return my investments and the company is still running but I don't have access to it anymore. Do I have a legal claim on my investments?

hi,

did you sign any document which can prove that you gave your friend the money? if so, then we may have a cause of action for simple collection of money. It would be difficult for your friend to prove that the money was lost thru investment since the business was in her name alone.

There was no document/signed document proving that he received a money from me but I have documents and receipts of purchases that I am still holding. On the other hand, most of these receipts are under the company's name. Proofs that I have is one, the document I signed when I loaned the money from my aunt. Second, my friend who owns a computer store that I had transactions with upon purchases of our computers for the office using the money that I invested. Other than these 2, I cannot think a better evidence/proof for my investments.

Any responses on this one please?

imo, what you guys created was a partnership, although until that is proven, the presumption is that it remains to be sole proprietorship. i believe the proper remedy would be to demand an accounting of the company properties.

I see.. you mean the purchases made upon the start of the business. worst case scenario, can I ask our supplier to be a witness for the purchases I made though receipts were signed after the company? though I don't think this will give me a solid prof. If I take this case to court, what are the chances of me losing this case?

Any advice for the steps I am about to take? Thank you.