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Thread: Close Corporation - Member interest dispute

  1. #21
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    Hey Greig, that is some good advice. What Samual needs right away is a good commercial attorney. Good attorneys bring the sparring partners round the table and by-pass the courts.

    Samual, get hold of such attorney. You're the type that needs one

  2. #22
    Silver Member Greig Whitton's Avatar
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    Quote Originally Posted by desA View Post
    Practically, the legal profession in SA is essentially useless against business hijackers. (Discussed to death on another thread).
    This is factually incorrect. If there was no legal remedy to business hijacking, then no-one would bother starting a business or investing in one in South Africa.

    Quote Originally Posted by desA View Post
    The 60% partner appears to be in the process of taking/commandeering/stealing/whatever the 40% partner's assets/rights/income/whatever.
    "Appears to be" is the critical qualifier here. We don't know what, exactly, Samual's partner is doing (and, by the sounds of it, Samual is not 100% sure either). Advising someone to misappropriate assets legally owned by a CC that they only have a 40% share in, on the basis that the majority partner might be breaking the law, is extremely irresponsible. This is not a school playground where you can afford a "two wrongs makes it right" attitude. This is a matter of serious business consequence where a cavalier approach could have devastating consequences for Samual and any of his dependents.

    Quote Originally Posted by desA View Post
    The legal system in the current SA climate, serves little use here - sadly to say.
    This is factually incorrect.

    Quote Originally Posted by desA View Post
    Only at 75% control is virtual autonomy unchallengeable - not 60%. So, the fact that the 60% hijacker can do whatever he wants - with full protection (criminal & civil) against the poor 40% fellow who attempts to assert his 'rights' - is all well & good, then? Nonsense all round.
    We've already established that Samual's partner can't do as he pleases with only 60% ownership. But, legally, he does have considerable autonomy. Again, we don't know for sure whether he is using that autonomy lawfully or not. And even if he is using it unlawfully, stealing from the CC is a stupidly reckless attempt at solving the problem.

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  3. #23
    Platinum Member desA's Avatar
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    ^ You will learn.
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  4. #24
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    Hi All

    Thank you for all the advice. I have persuaded my partner to meet for us to put an agreement in place. After much consideration, the following are the steps I am going to take:

    1. Meet with him to discuss the the way forward and what the expectations are
    2. If the meeting does not go well, i will advice that we go into mediation
    3. If he chooses not to co-operate, then we shall go into arbitration

    Greig Whitton, i will PM you should i require access to legal representation.

    This partnership is poisonous and i need a resolution now (whether we can agree or whether a judge needs to make a decision) as i feel this is consuming me and it will end up making me bitter and resentful.

  5. #25
    Platinum Member desA's Avatar
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    All the very best towards a successful outcome.

    Observations:
    1. You are the anxious party - not the hijacker.
    2. You are being played - towards frustration.
    3. Your partner has the upper hand, in all aspects
    4. Very unlikely that you will succeed.
    5. A business hijacking is in progress. A slow-moving train wreck.

    I repeat:
    Grab what you can, while you still can, & get out of dodge! Argue from a position of strength. There are no laws left to protect you or your interests - even if you get past that hurdle, the courts offer no solution unless you purchase justice - despite fleecers claiming otherwise. It is a no-win scenario.
    In search of South African Technology Nuggets(R), for sale & trading in South East Asia.

  6. #26
    Platinum Member desA's Avatar
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    Dear Samual,

    I do apologise for the directness of my earlier posts, but, I see myself where you are now sitting - in April 2013. I can see where you are hoping, against all hope, it will end up.

    My experiences along the road you are now hoping to walk were frightening to say the very least. You will need to have a substantive amount of your own savings to burn, if you ever want to see justice - also allow for 3-5 years resolution period. Do not expect to see returns from your business until the matter is fully decided - even then, you will still have to draw it out of the person. It is very likely, if your partner is an experienced business hijacker, that he will simply ignore all attempts at either arbitration, or intervention & sideline you.

    You will also burn up significant amounts of your own time, without compensation. Be well prepared, with a large war-chest on hand.

    For most of us, who believed in the Law's ability to protect us, or rescue us from a dire situation - forget it. That was the SA of 20 years ago. Today, SA is a sad place, where dog eats dog; the poor are downtrodden & no self-respecting fleecer will even give you the time-of-day before he's checked your war chest. Better to take the risk of the hijacker squealing like a stuck pig when you move critical assets to a safe place - to be returned upon successful resolution of the dispute. Give the hijacker a written notification & receipt for the items you are holding pending resolution. Leave the onus on him to get a court order to retrieve. Oppose, oppose, oppose.
    Last edited by desA; 05-Jun-14 at 07:25 PM.
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  7. #27
    Site Caretaker Dave A's Avatar
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    Let's hope Samual isn't dealing with the kind of people you were, Des.

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  9. #28
    Platinum Member desA's Avatar
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    ^ Dave, I really do also hope so. What an awful experience to go through.

    Hardened, experienced business hijackers have absolutely no regard for the law whatsoever. It is easy to pay a fleecer to put up an offensive/defensive position. Members are pure collateral damage on their way to putting money in their own bank account.
    In search of South African Technology Nuggets(R), for sale & trading in South East Asia.

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