In 2015 I purchased a residential property with 2 other people, using a PTY. All 3 of us are directors and shareholders, I have 49% shares and the other 2 have 37% and 14% respectively. Shares were allocated based on the investment of each director/shareholder.
As per an agreement, each director agreed to pay a percentage of the mortgage, property running costs, maintenance etc. Note that the "company" does not generate it's own funds but relies on the directors to pay expenses. The company is not registered for VAT.
The director with 37% shareholding has not kept up with their agreed payments and is refusing to pay (in excess of 24 months). In order to prevent losing the property, I have been paying the contributions for this director, putting myself under financial strain.
Our accountants set up loan accounts for the directors, including the initial investments and payments made by each. Currently they are deducting the non-payments of the 37% Director from their loan account.
Question: What happens when this loan account reaches a zero or negative balance. Is there any way to "get rid" of this director?
I have proposed numerous "buy out" offers, which in turn have all been declined!
Surely there must be some form of repercussions for the non-paying director??