[camz]

Well if the partner was supposed to provide funding or capital to the company but failed to, then his ownership in the company is called into question. That partner failed to fulfill his contract to the company and doesn't have a legal right to the shares in the first place.

Realistically it depends ona number of factors. Is there anything in the company worth retaining? Ex a signed contract or sale agreement under the current company. If so, then you should fight to keep the company. Lawyer up and have him make a choice either pay more and lose his unearned share of the company or simply relinquish his unsubstaniated position.

If the company has nothing, then just start fresh.

[ashleyreddy]

Company just has letters of intent to put up signs. I don't this they are worth much as there is nothing binding.

[camz]

Then just start fresh because it's not worth the trouble in the future. If you build a great company today, then they could come back and stake a claim on your success.

A letter of intent is not as important as he business relationship you've built. They'll come with you when you move.

Just start over and tell them that the company was reorganized to increase efficiency.