Results 1 to 3 of 3

Thread: CC member cannot be located

  1. #1
    New Member
    Join Date
    May 2015
    Thanked 0 Times in 0 Posts

    CC member cannot be located

    Good Morning I trust all had a great weekend so far..

    I have a client who is a member of a cc along with another person.

    For the last 2 years the company has been running @ a loss. So my client say he is person A and the other person is B.

    So here's my problem which on require advise on.
    Person A and Person B were both memebers in a cc person A put capital in the CC and was moving the company in the right direction Person B however was stealing from the company and was in charge of looking after the paperwork and taxes unfortunately that didn't work as person b never ever submitted anything to sars or dept of labour therefore the company could not get any tax clearance certificates. So what person B did was pay som1 to make false TCC and letter of goods standing. Anyway person B den disappeared.

    Now when person A contacted me for help with resolving all the tax issues with sars we discovered that there is a lot of monies and returns outsanding and @ dept of labour.

    Now person A wants to resign from the CC as he cannot find person B to resign.

    My question is.
    What will happen to monies due? Who will be liable for it?
    And what is another way to get a member to resign that cannot be found (in the event of person A not being able to resign as of unpaid funds)

    Please kindly explain.

    Thank you.

  2. #2
    Gold Member Houses4Rent's Avatar
    Join Date
    Mar 2014
    Cape Town
    Thanked 56 Times in 52 Posts
    If nobody took real care of the paperwork I guess might have CPIC de-registered the CC by default anyway. Maybe that helps to make the liabilities go away, but I doubt it
    "We treat your investment as we treat our own"
    Global Residential Property Investor / Specialized Letting Agent & Property Manager

  3. #3
    Gold Member
    Join Date
    Jun 2010
    Thanked 176 Times in 145 Posts
    Nah, highly doubt it. SARS will attack the members if the corporate entity fails. They will most likely try and attack all members, but probably focus on the ones that can be found and who have assets. As a director or member you're pretty much signing a personal surety on taxes.

    A cc is also more complicated than a pty in this case, because a member is also a shareholder, so you can't get a shareholder to "resign". You have to try and get them to sell their shareholding to you.

    Hopefully some others will come up with some alternative suggestions, but I reckon your best way forward is to stop trading in the cc, pay up all taxes and then close the cc down. Then start up the business in a new company if you wish to continue trading.

Similar Threads

  1. [Question] Is it Legal for a Home Prepaid Meter and DB Board to be located on the outside wall?
    By peAKs in forum Electrical Contracting Industry Forum
    Replies: 7
    Last Post: 11-Jan-15, 05:47 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts