You’re hiding overdue bills from your business partner.
A partner cannot help manage obligations they cannot see. Rebuild the shared facts before another purchasing or payment decision is made.
Corporate Recovery Partners
01 / 06
A co-owner is making decisions without the overdue bills
Two owners run a fabrication business. One manages sales while the other handles accounts. The accounts owner has stopped forwarding overdue notices because the sales owner becomes angry about cash. A new materials order is now being negotiated on the assumption that suppliers are current. Concealment is turning a financial problem into a decision-making problem as well.
List overdue and upcoming bills, notices, disputed items and any private payment promises. Reconcile the list to statements and bank transactions. Include debts that have been kept outside the normal reporting folder.
Identify the legal structure and each person’s role. A business partner, shareholder and company director can have different rights and duties; get advice rather than relying on the label used in conversation.
Present the position with documents, dates and known gaps. Explain which earlier reports were incomplete and correct them explicitly. Do not bury the largest arrears in a long list of minor expenses.
If direct discussion is difficult, involve the accountant or another appropriate independent adviser. The purpose is an accurate shared decision, not allocating blame before anyone understands the obligations.
Review orders, withdrawals and promises currently being made. Tell the responsible people which financial assumptions need reassessment, without disclosing confidential information beyond their role.
ASIC expects directors to remain informed about company finances. If both owners are directors, one person handling accounts does not make the other’s need for reliable information disappear.
Agree access to bank and accounting records, responsibility for creditor communications and a regular arrears review. Use a clear distinction between verified figures, estimates and unresolved disputes.
If the business cannot pay due debts, obtain specialist advice promptly. Restoring communication is necessary, but it is not itself a solution to the cash shortage or the consequences of past decisions.
