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Thread: Reckless Business Partner

  1. #21
    Silver Member Greig Whitton's Avatar
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    Quote Originally Posted by HR Solutions View Post
    Greg I did open your link and stopped reading after it mentioned "Trust" ........ which is irrelevant here
    If you bothered to keep reading, you would have learnt that the presence of a trust was not why the High Court held the suretyship invalid and that the case does have potential relevance to this thread.

    But you've made it very clear both here and in multiple threads that you're here to troll, not to learn.

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    But you've made it very clear both here and in multiple threads that you're here to troll, not to learn.
    Do you feel good now ? .................. being a doos !

  3. #23
    Silver Member Greig Whitton's Avatar
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    Quote Originally Posted by HR Solutions View Post
    Do you feel good now ? .................. being a doos !
    If you make factually incorrect statements, you're going to get fact-checked.

    If you willfully ignore those facts, you're going to get called out on your bullshit.

    If you don't like it, stick to the social forums and leave the advisory stuff to the professionals.

    Founder of Growth Surge - Helping entrepreneurs create more wealth and enjoy more freedom.

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    Greg if you still think you are right lets stick to that ok. At the end of the day an attorney will advise the correct thing to do regarding signing surety.

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  6. #25
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    What about the option of putting in an application to liquidate the business - if i remember correctly there are certain special circumstances \ scenarios where not all the members approval is required if certain things can be proved...

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    Once again, thank you for everyone's input. I spoke to a specialist attorney yesterday who deals with these matters. He said basically I don't have many options as I have signed personal surety with the banks, the membership % does not count here as he owns nothing and I have personal assets. The banks will obviously first go after assets in the business and then if that doesn't cover it (which it wont), they come after the members. Even if I handed over my membership to my business partner, I am still personally liable for the debt and have then relinquished any control over the business which could further jeopardise me. The business is over R1m turnover so certain loopholes for small businesses don't count here AND the debt owing is too small to warrant going to court to get him forcibly removed (the legal costs will out weight the gain). At the end of the day, the moral of the story is DON'T EVER SIGN PERSONAL SURETY unless your partner/s have MORE assets of than you. I now need to check how the overdraft surety is worded because although its only R100K now, my partner (being majority) could up that to R500K or whatever he likes putting me deeper into the hole. The sad thing is that even though I as the minority shareholder have very little rights and my partner has full decision making powers - the opposite is true when it comes to liability - I have all liability because I own personal assets! Seems very unfair to me.

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    Sorry about that Tiger but at least you have heard it from a qualified person now. Hopefully you will recover and rebuild and perhaps recover some of the money from your partner.

  9. #28
    Silver Member Greig Whitton's Avatar
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    The only other options I can think of (assuming your partner doesn't catch a wake up) are:

    1. Applying for business rescue; or

    2. Applying for a court order declaring your partner a delinquent director / member on the basis that his negligence is prejudicial to your rights and interests as a member.

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    Diamond Member Justloadit's Avatar
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    From what I gather, all sureties must have a fixed amount, or to cover a specific debt.

    I would contact the bank and request to recall your Surety for the over draft, but be prepared to clear the overdraft. This may be a cheaper way of getting out of the responsibility.
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  11. #30
    Silver Member PlatinumWealth.co.za's Avatar
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    Quote Originally Posted by Tiger1977 View Post
    Also, he is the "key man" in the business with the industry specific expertise and does all daily operations. I was always supposed to be a silent partner but landed up doing all the admin and business end on a part-time basis. I am concerned that I am going to be held accountable for not enforcing certain parameters. However his attitude has always been one of "I'm the majority shareholder so I make the decisions" so he is very difficult to control.
    That's a k@k position to be in, have any family friend in a very similar situation.

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