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Thread: Deadlock exiting CC

  1. #11
    Diamond Member Justloadit's Avatar
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    It could be your partner is counting on you giving up.
    But remember if you file for liquidation, your partner will oppose, but this does not mean that it will end there, it just means that it will take longer to achieve this means.

    A restraint of trade, is not a right your partner may force on you, simply because your partner will pay you off into the future, as what guarantee do you have, that he will pay, What recourse do you have, if he does not pay?

    I am of the opinion, that you do not get yourself in a position where you can easily become a victim of a nefarious partner. Always negotiate so that your are always in a position of power and control. Always assume the worst when negotiating in these conditions, as people will promise anything to get what they want, fully knowing that they will not fulfill their statements.

    Maybe it is time to visit a lawyer, who can advise a way to clear the situation.

    In the meantime, how are your earning an income?
    This at the end of the day is the most important part of any of your decision making, no income means that you will be in the dwang.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  2. #12
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    Thank you for your time.

    Neither of us had the finances for a drawn out fight. The company is barely surviving financialy and we have not had an income for a very long time.

    There is no way that my partner will generate the money to pay me off as we are not even able to generate extra income with both of us there. The draft contract that we have (and she refuses to sign because of the restraint of trade that she wants) has a clause that states that if she defaults the Whole amount becomes due immediately.

    I have consulted with a lawyer and the only option he gave me going forward is to apply for liquidation at my own cost.

    I have been tightening the belt since my husband passed away and living off my savings which is now almost depleted. I cannor afford to get into debt and that is why I have decided to leave and somehow try and generate an income for myself.

    Is it an option for me to inform my partner that I am leaving and not remove myself from the CC? Am I then liable for the debt that the CC gets into? Can I sue the CC for my loan account and not apply for liquidation? What would need to happen then?

    I am desperate....

  3. #13
    Diamond Member Justloadit's Avatar
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    With out full information of your involvement in the C.C., and on an open forum like this, it is not the place to offer any kind of legal advise or any further information.
    I suggest that you find a 'company acts' lawyer in your area, who you can then consult, place all your information at his disposal, and he can then make an informed decision.
    There is no simple solution for your situation, especially when there is a difficult partner. She may be acting like this because she may feel threatened that her life is also going into turmoil, and her defense in her mind may be that she is trying to keep the company all to herself, and that will solve all her problems. So keep this is mind when negotiating.

    Maybe do a Google search, or ask your accountant/book keeper to recommend a lawyer in your area.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  4. #14
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    Thank you.

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    Hi Lilla,

    I hope you have resolved this. IF not, here is my short answer. You have a few options. If you do not have some kind of co-operation agreement then you don't just walk away. You stay a member. If she succeeds, you still own half the assets. If you want to walk away, you can do so by applying to court on the grounds that it is just and equitable to do so due to the fact that there is no working relationship. You don't need to go all the way with the application. The threat to do so may be enough. She will also have to incur legal costs and at the end of the day she does not have the funds it seems to do so and therefore will negotiate.
    Hope this helps.
    Tania

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    Thank you so much Tania. Not resolved yet. We are maintaining a good working relationship but at the same time I have to start something to earn an income. If the situation does not get resolved soon I will do exactly as you advised. Am I correct in saying that I will not be held redponsible for any debt that the CC incurs after I leave as the CC is an entity on its own?

  7. #17
    Diamond Member Justloadit's Avatar
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    Quote Originally Posted by Lilla View Post
    Thank you so much Tania. Not resolved yet. We are maintaining a good working relationship but at the same time I have to start something to earn an income. If the situation does not get resolved soon I will do exactly as you advised. Am I correct in saying that I will not be held redponsible for any debt that the CC incurs after I leave as the CC is an entity on its own?
    Not if you have signed surety, and any credit requests over the years. The creditors do not care what is really happening. And this is one of the shortfalls of being a C.C.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

  8. #18
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    Yes you will first have to check whether or not you signed any sureties that you may not be aware of. And you'd also want to check what your loan account is...do you owe the CC money or do they owe you?

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    Thank you. Company owes me money. Will double check surety. I am in awe of everyone that takes time out of their busy lives to give me advice. May you reap what you sow.

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