Business Hijacking

[ians]

Unfortunately just like outstanding debts, unless you have more money than you know what to with it, you pretty screwed. If I had to calculate and I am sure most business owners would tell you the same, all the money I have been screwed out of since I started. I could have enjoyed a trip around the world, first class.

Rule no.1 in business

NEVER TRUST ANYONE.

Dave I cant give you anymore details with regards to my mate. What I can say is sometimes it is not wise to screw certain people, especially when they specialise in weapons training and gorilla warfare, it is just plain dumb. I doubt he will go the legal route.

[Justloadit]

In most times, the first loss is the cheapest.

In other words, walk away, use the new found energy in your own company.
Resign as a member of the CC, forget trying to get some bucks for the shares, you are not going to get a cent.

Once there is a letter of acceptance of the resignation, you are open to go hunting again in the same forest you were in before. Use the gained experience to make the hunt successful.

[desA]

Thanks Ians & Justloadit.

Rule no.1 in business - NEVER TRUST ANYONE.

So sad, but absolutely true.

In most times, the first loss is the cheapest.
In other words, walk away, use the new found energy in your own company.

In my case, anecdotal evidence & collected comments seem to point to these business hijackers being serial offenders, over the years. This is a strategy to make money from the unwitting & trusting.

These folks also tried to block use of a legacy, rather novel technology, in the process - while they asset-stripped, behind their attack attorney's cover. Little real chance of them being able to enforce this going forwards. (Enough said on that, for now).

Resign as a member of the CC, forget trying to get some bucks for the shares, you are not going to get a cent.

Once there is a letter of acceptance of the resignation, you are open to go hunting again in the same forest you were in before. Use the gained experience to make the hunt successful.

Absolutely, on the hunting analogy. Be a little careful on the simple CC sign-off process, however. The exiting member needs to ensure that the altered CK2A form is lodged & accepted by CIPC. Until this is done, the party remains a member of the CC. Beware if the hijackers delay submission of the CK2A, run up business debts in the meantime - cash out their gains & leave the sucker to carry the rest!

Remember, these hijacking-types are generally criminals & serial offenders - not just business-persons taking a one-off chance. The matter needs to be seen in context.

[ians]

I was screwed by Powerflow exhaust pipe manufacturer, when I moved his factory from Umilo Rd to Pinetown.

The way I understand it, (it might not be exactly as I put it but should be pretty close) he got so badly screwed by a company which apparently worked hand in hand with his auditor Michael Banks who was apparently working for an auditing company at the time, apparently this company got wind of his financial difficulties via an informant, who then became one of the managers at Pima force exhaust pipes. This I found out when I contacted the auditing company, to find he had left, so I then contacted the exhaust company to find he had become one of the partners, who apparently has since got the short end of the stick and suffered a small setback, bit of his own medicine.

My point...don't trust anyone, there are people, companies out there who specialise in f%^&* you, they will take the clothes off your back to make a quick buck.

Dave I do believe your thoughts about people targeting other people is right on the money.

[desA]

Now, what cost-effective remedies does South African Law allow the hijack victim to pursue, in terms of going on the attack?

In many cases, the chances of asset recovery are slim, if not impossible.

[Justloadit]

Absolutely, on the hunting analogy. Be a little careful on the simple CC sign-off process, however. The exiting member needs to ensure that the altered CK2A form is lodged & accepted by CIPC. Until this is done, the party remains a member of the CC. Beware if the hijackers delay submission of the CK2A, run up business debts in the meantime - cash out their gains & leave the sucker to carry the rest!

Remember, these hijacking-types are generally criminals & serial offenders - not just business-persons taking a one-off chance. The matter needs to be seen in context.

This usually applies to accounts in which you may have signed surety on it. Invariably the only way these offenders get away with debts is to liquidate the CC, which of course benefits you as well.

Most surety's state "jointly and severally", in your case because you are financially in trouble, the creditor will attach he who seems to have the most cash, and then let them sue the other members.
Also being 20% shareholder also means the debt is only 20%, and in any likelihood said creditor will go for the largest shareholder, leaving you out of it.

Another point in question here is that you were not in control of the bank accounts/payments, and can use this as part of your defense against said creditors, off course you need to get a lawyer on your side if it comes to this.

[Justloadit]

Now, what cost-effective remedies does South African Law allow the hijack victim to pursue, in terms of going on the attack?

In many cases, the chances of asset recovery are slim, if not impossible.

As said before, you need big bucks to go down this route.
Only when you have been down this route once in your life, will you appreciate the advice.
Financial legal cases can take up to 5 years to be resolved, and if it is over R250K (I stand to be corrected here), it goes to Supreme court, which requires advocates to fight your case. Very very costly, where court fees can be over R30K a day, excluding advocate and lawyer fees. All this is done with money up front, in other words, attorneys do not usually work on probono, and require deposits up front before proceeding with your case. This also does not take into account the regular visits to the advocate while the documentation is drawn up, and the emotional stress and drain that it will take, which off course hampers you in your daily work, causing even more loss because you take the eye of the ball of your current business.

[desA]

Thank you, Justloadit. You have raised a major point.

Now, would this be a reality the serial/professional business hijackers could/would use to their advantage?

How does the common man survive such a catastrophe, in South Africa?

Does everyone tuck tail between hind legs, crawl into a corner, sleep it off, then re-surface to begin again? Has SA become a nation of curs?

[sterne.law@gmail.com]

Magistrates courts have jurisdiction for R300 000 (you can still go to High Court if less)
The Supreme Court (SCA) is only an appeal court. The High Court result can then be take on appeal. (It may even go on appeal to the high court itself, and then only to the SCA.)

Yes, all very expensive.

[desA]

So, what recourse remains for the common man, with a light wallet?