[Question] How to get rid of a member of a CC ?

[InDieStront]

Hi all, as my nick name suggested, I am in the sh!t.

Wel not as match as my co member of our CC. let me elaborate.

We are trading under a cc as dentists. No for the problem:
Member X, not me, is charged with fraud. This might meen the end of the business, if it became public knowledge.

How do I get him out? Don’t want to but I have no choice. Will the remedies in the new Companies act help, and what are they?

PS: He only got his citizenship 6 months before the CC was formed.


Please help.

[BusFact]

You negotiate with him. You try and make it worth his while to leave. Its a business deal that must take place between the two of you. How you manage to convince him depends on the specific circumstances of your situation.

Some suggestions are: Pay him to leave, threaten to leave yourself, offer to sell your share to him, etc.


I don't see how the citizenship is a factor.

If he is later found guilty of fraud and gets a criminal record, then that will change the matter and he may be forced to resign (not sure of the specifics). That however could be years down the line, depending on the case.

[Blurock]

If this is a new cc, why don't you just liquidate the cc and go your separate ways? Does the cc own any assets? Trading under your own name may buffer the association with a fraudster?

I am of the opinion that a good reputation is worth more than money in the bank.

[adrianh]

But if the member of the cc is charged with fraud would the cc not also be investigated as a matter of course to determine the extent of his fraud?

[PieterPan]

Good day.

What about Section 162 or 165 of the new companies Act?

Regards