[Question] Selling members interest in a cc and my rights

[urbanfx]

Hi all,

Firstly, let me apologise, as this thread is pretty similar to a recent one. However, there is a bit more to my story, and besides, I hate hijacking threads

So on to the story...

It's not a new story, I hold 20% share in a cc and my partner the other 80%. My partner's wife works for the company and recently her and I had a set to. With it being a family run business and me being the outsider, to keep the peace I resigned from the company. However, since resigning from the company the wife has restricted my access to bank statements, financials and other pertinent information. My 'partner' and I are still on good terms so I asked him what the story was and he said that I would have to discuss it with his wife which I found pretty laughable. Anyways, knowing how this was going to play out, I asked his wife for access to the information only to be told that it is none of my business.

Just to make something clear, I purchased the shares in the cc from a previous member. As the story always goes, we got caught up and never got round to doing the association agreement or anything else for that matter. So as a 'minor' member in the cc, what would my rights be in so far as access to financials etc?

Secondly, as I can clearly see who is now running the company, I would rather not be involved at all. With there being no association agreement etc. what are the legalities of selling my interest in the cc? I have no problem offering my partner first option, but I know for a fact they are in financial trouble and won't be able to come up with funds. If I put the shares on the market as such, do they then legally have to give me and the prospective buyer access to all the necessary information?

Sorry for the long post, but I wanted to try and make it as detailed as possible. Any input would be greatly appreciated.

Thanks in advance for the help!

[Dave A]

A letter from your lawyer is probably the best way forward.

This would set out your demands/expectations/requirements in terms of access, financial reports and your interest in selling your member interest.

It's a whole lot cleaner than trying to argue the situation yourself - especially if you've already "retreated" from active participation as a result of the hostile environment.

[Yvonne]

Just as a matter of interest, years ago a member of a CC had some legal implications for a certain number of years after they ceased to own shares!
Regardless of how or to whom the shares were sold, or disposed of.
Especially with regard to record keeping and S.A.R.S.

Please make sure you verify all potential areas of possible legal liability!
Yvonne