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Good Evening,
A issue has arisen, which would be quite tremendous were I to understand what rights Members have in this issue.
Simply put my father and his friend bought a business. They registered a CC, with 50% equal share. The business was bought for R1,8 Million, however on the CC documentation the investment share is noted as R1. After this had been done they decided to bring in a Third partner, who then had 34% of the CC Share , leaving my father and his friend with 32% each. The CC documentation was then updated to reflect three members, all having a R1 share. In verbal discussions at this point the third new member promised to pay his R600k into the business. Initially he did some construction work on the premises equalling R120K. He then refrained from ever participating in the running or maintenance of the business in any way shape or form. Unfortunately there was no initial agreement specifying this third member pay R600k. The initial two members have then contributed all R1.8m to complete the transaction. The third member put in these efforts until he was placed on the CC documents and then withdrew entirely.
My father and his friend have asked systematically for this payment to be made, but it has not been done. Roughly two years ago the members held a meeting which was minuted, in which it reflected this third member had not paid and that he should. He promised to do so but never did. Four years have now passed in total, two since this minuted meeting - and two things have happened 1. The third member has never paid and 2. My father and his friend have grown the business substantially.
What rights do the two original members have to forcefully remove this third member or compel him to pay?
Any input would be very welcome and perhaps an indication on the correct course of legal action that can be taken.
A issue has arisen, which would be quite tremendous were I to understand what rights Members have in this issue.
Simply put my father and his friend bought a business. They registered a CC, with 50% equal share. The business was bought for R1,8 Million, however on the CC documentation the investment share is noted as R1. After this had been done they decided to bring in a Third partner, who then had 34% of the CC Share , leaving my father and his friend with 32% each. The CC documentation was then updated to reflect three members, all having a R1 share. In verbal discussions at this point the third new member promised to pay his R600k into the business. Initially he did some construction work on the premises equalling R120K. He then refrained from ever participating in the running or maintenance of the business in any way shape or form. Unfortunately there was no initial agreement specifying this third member pay R600k. The initial two members have then contributed all R1.8m to complete the transaction. The third member put in these efforts until he was placed on the CC documents and then withdrew entirely.
My father and his friend have asked systematically for this payment to be made, but it has not been done. Roughly two years ago the members held a meeting which was minuted, in which it reflected this third member had not paid and that he should. He promised to do so but never did. Four years have now passed in total, two since this minuted meeting - and two things have happened 1. The third member has never paid and 2. My father and his friend have grown the business substantially.
What rights do the two original members have to forcefully remove this third member or compel him to pay?
Any input would be very welcome and perhaps an indication on the correct course of legal action that can be taken.
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