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Thread: What happens to loan account when CC closes

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    Thank you I will stick to that. What about the shares though? I am being held "hostage" because I am a 50% member so although it is most unpleasant to be there I still have to perform certain duties which my partner is very capable of doing (like handing over a file to the messenger for the accountant). How will it impact my loan account if I sign the shares over?

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    Quote Originally Posted by Lilla View Post
    Thank you I will stick to that. What about the shares though? I am being held "hostage" because I am a 50% member so although it is most unpleasant to be there I still have to perform certain duties which my partner is very capable of doing (like handing over a file to the messenger for the accountant). How will it impact my loan account if I sign the shares over?
    Did you not read my post?
    On no account do you sign your shares over until your loan account is paid. Once you have your money, it is no longer your concern about your duties, you are no longer part of the company. You can resign as an employee at anytime, but I suggest you remain inside until the deed is done. At least you can have an overview of what is happening, and if you are not happy with the way the business is heading, you can request a liquidation to prevent further losses.
    Your loan account can not be touched by your partner while you are a share holder. Your partner can not sign any agreements, or accept any liabilities with out your consent as a 50% share holder. Remember that you may have signed personal surety for previous business activities, and part of the signing over of the shares will be to recall these sureties. This may be an over draft at the bank, a supplier credit application, and so forth. You must approach each entity one by one, and cancel/revoke/get back the original surety you signed, and get the current member to be the sole surety holder in the cases that you signed jointly in sureties. This is a very important step!!!!!! If you do not get this sureties annulled, the holders of the sureties will enforce you to pay for the amounts, irrespective that you are no longer a share holder in the business, to be quite frank, they do not care, they have an agreement which usually says "jointly and severely", in other words when the time comes to pay up, they can sue both members together, or if they see that you are able to pay and not the other member, they will sue you directly for the full amount, and will let you go through the process of suing the other member at your own expense.
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