What rights do I have as inventor and minority shareholder?

Hi there,

I have a question that I am hoping somebody can help with. About 4 years ago I invented a product and eventually brought it to market with the help of the business partners I took on. In fact they did most of the work after I took them on as they were much more experienced with dealing with large retailers.

Skip on two and a half years and after 6 months of ok sales it looked like the venture was dying as the one large retailer we had an exclusive contract with said they would not order from us again until we met a new, cheaper, competing product's price. To cut a long story short, it didn't seem like we would make any money and my business partners suggested that I sell the majority of my shares to them in case they could salvage anything and I would get a chunk of money as a pay out. At the time I needed the money as I was hoping to emigrate so I sold them 30% with me still keeping 10% of the company.

Recently however, the large retailer has been selling my product again and we have also taken orders in Australia, New Zealand and have one in America in the works - so things have picked up.

Now I have asked my partners about getting some dividend payments and they have said that they do not intend to take any for at least another year as they have been paying out for patents fees in different countries. They suggested that if I want regular payments then we should strike a royalty/licensing deal where I get 10% of the profit from each unit sold. This would be in return for me selling them the rest of the shares.

I discussed this with my other half and ended up turning them down as I am not in need of the money right now and I could lose out if they sell the company etc.

I have just received an email saying that the licencing deal is better for me as I currently have very little control and "theoretically if partner A bought out partner B he could pay himself a salary and no dividends" obviously this was followed by a statement saying this is not their intention but it has got me a little concerned.

Could they do this and I be squeezed out from getting any money if I don't take the licencing/royalty deal?

Would a licencing/royalty deal a good option or should I keep the 10% ownership? I have no idea and would like to avoid paying for a solicitor at this stage.

Also, they have been very bad at giving me the sales and finance details I have asked for repeatedly as they say the accountant is setting up Sage and they will send the details to me soon. Is there any way I can get this information publicly?

Any advice would be great.

Thanks very much!!