Problems with my rights in a CC

[keithback]

Goodday all. I hope that someone on this site has the required information I seek. I was or am still in a CC but I am not registered as a member on the CC documents. This was as I was going through a divorce and needed to lie low. There is no dispute as to my being a 50% member. My partner decided (remember all the paper work is in his name) that he didnt want me as a partner and wanted to run on his own. he gave me a lawyers letter stating that my partner wanted me to pack up and leave. I told my partner that I still owned 50% of the business and I was not just going to sell or hand over my share without a proper understanding. The understanding was that should anyone leave that the other 50% member would pay him half the value of the business. This is also not in dipute but obviously the value may be an issue. I stated that I would leave the office under duress as I did not want a confrontation. My partner threatened that if I di not leave he would phone clients and cancel their orders. I need to know what my rights are and what I can do

[wynn]

Legally, as you probably know, you might not have a foot to stand on.
The value of the business? is it in stock, other assets or just goodwill?
Is there anything of value that is in your name?

Strip what is yours, PC's furniture, assets, stock or equipment, write the rest off to 'school fees' let him go his merry way then go and start a business, across the road or mall, in opposition to him if that is what you want.

Just be aware if you have signed any sureties with banks, landlords or suppliers? get a lawyer to cancell them.

[sterne.law@gmail.com]

If I understand your post correctly, the only issue is the value of the business?
If the two of you try and achieve this it seems unlikely that an agreement will be reached as you both have 2 opposite agendas. Him to pay as little as possible and you wanting as much as possible.
I often put a valuation clause in the memorandum -
a) An agreed maths formula eg 18mths of last 3 years ave profit
or in event of sale...3 business brokers are asked to evaluate the business, and the average of the 3 is used.
Perhaps you should sugegst the obtaining of 5 valuations (exclude the lowest and the highest then average the last 3) or something to that effect.
Other than brokers the chamber of commerce, accounting bodies etc, ect can all give values, even some estate agents that are trained in valuation.

The next step then becomes the payment of the money, especially if the cash is not available.

[IanF]

Play valuation poker, ask him for a valuation with the proviso that the choice is then yours to buy his share or sell your share at that value. Then you should get a reasonable valuation.

[Erika Gordon]

Without a CK2, you may not have much of a claim. Have you signed surety with the bank for an overdraft? You must sort it out ASAP.

Have you signed an employment contract? Do you have any other evidence that indicates that you were also an employee of the business in terms of the labour laws?

What about a cup of coffee to "discuss" the way forward in terms of his offer. Try and get as much as you can within reason. Shake hands and wish him all the best. I am sure you understand the plan to follow ...