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Thread: What to do with CC member interests?

  1. #1
    Silver Member Darkangelyaya's Avatar
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    What to do with CC member interests?

    I am part of a CC with the only asset being a valuable piece of paid-off property, and no liabilities.
    Since I believe in ridding myself of 'dead weight', I am looking for suggestions as to how I can cede or sell my membership interest.
    The other members are not interested in buying me out, even though I am willing to accept way below market value.
    Any (legal) suggestions?
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    Diamond Member Blurock's Avatar
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    Lots of questions arise.
    Is the property generating an income? Who benefits? If not, who stays there and why are they not paying rent? What is your share and why will the other shareholders not buy your share? Can you sell the property? etc etc
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    Silver Member Darkangelyaya's Avatar
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    Quote Originally Posted by Blurock View Post
    Lots of questions arise.
    Is the property generating an income? Who benefits? If not, who stays there and why are they not paying rent? What is your share and why will the other shareholders not buy your share? Can you sell the property? etc etc
    Property is not generating an income. Three of the members (original owners) stay there, paying rates and taxes, but otherwise rent-free. They are octogenarians and their right to remain there was included in the agreements. The other members will 'benefit' once they pass away.
    My share is 10%, the others won't buy because they don't have the money.
    No, the property cannot be sold. and the main 'shareholder' plans to make it his own by default, once the others have passed away.
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    Diamond Member Blurock's Avatar
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    I can not give you a legal opinion, but it appears as if you are stuck with something similar to the useafruct rule. At best you can hope to inherit something?
    Excellence is not a skill; its an attitude...

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    Silver Member Darkangelyaya's Avatar
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    Quote Originally Posted by Blurock View Post
    I can not give you a legal opinion, but it appears as if you are stuck with something similar to the useafruct rule. At best you can hope to inherit something?
    Yes, some more of the same 'shares'
    ~Anything or anyone who does not bring you alive, is too small for you~ Carina
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    In a nutshell you can only dispose of your share with the written consent of all of the remaining members. This consent is at a minimum recorded or indicated by them signing the CK2 form.

    I am not sure what you mean by "the main 'shareholder' plans to make it his own by default, once the others have passed away."?

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    Darkangelyaya (14-Nov-12)

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    Silver Member Darkangelyaya's Avatar
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    Since he will have controlling interest, he will definitely decide to occupy the property, which would mean that the rest of the members would
    a) be steamrolled;
    b) not be remunerated
    and honestly, I have no intention of going the legal route here to sort this out - I want to give up my shares completely, but one of the members refuses to sign.
    ~Anything or anyone who does not bring you alive, is too small for you~ Carina
    ~The moment you think you know it all, is the moment you know nothing~ Carina
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    The key here may well be where is the liability; the property, being an asset, must have a corresponding liability or equity. In other words, the asset is either offset by members loans (liability) or member's contributions, which is equity, but which is as per the CK1 / CK2.

    That being the case, do you have a loan balance due to you? If so, and there are no funds to pay you, well then ... you know what to do.

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    Darkangelyaya (14-Nov-12)

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