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i'll just try and locate the deed and have a look. i'll get back to you shortly.
ok great. my accountant is just emailing me a copy now so should have for you very soon.
Is there a way in which i can email you the Deed? I seem to be having troubles doing it through this website.
i was advised yesterday via email that my information on the Unit Trust had been forwarded to you? just wondering if you had received it?
Several pages individually scanned came through. It would have been much easier if it was all one document, and there are also sections of the UTD that are missing. Of the 11 pages sent through, there is nothing about how to terminate the trust early (although Termination Date is referred to several times). So that kind of leaves us back at square one.
But there might be another way to proceed here.
Of the four unit holders, they all presumably contributed 25%, plus someone also coughing up the additional 25% for this chap who now wants out. Is that correct?
Was it ever put in writing that this fellow who now wants out, that he would pay for his 25% share in the Trust?
The schedule in the rear of the unit trust shows the amount required for his 25% share and that 'he' is responsible for this 25% share, however his actual payment was never forthcoming. The only discussions held was that once the company was cashflow positive that his share of net profits would firstly contribute to his 25% share payment before he would be eligible to receive further net profit distributions. This was generally understood between all however this was never stated in writing.
Our bank account when set up clearly shows 3 deposit payments totaling 75%. His share was not expected at this time,but it was understood that things did have to 'even' out at a time when the company was cash flow positive. However he is now exiting at a time when the company is trading in negative territory, and seems to be taking the position that he wants to remain as a silent partner (25%). My preference is to see him sign over his 25% share back to the other 3 Unit Holders in lieu of having to immediately pay his $$ share.
The schedule in the rear of the unit trust shows the amount required for his 25% share and that 'he' is responsible for this 25% share, however his actual payment was never forthcoming.
Then the Trustee should commence proceedings against him in The Victoria Magistrates Court for whatever the amount was for the 25% as per the Trust Deed.
Obviously you would need a lawyer to assist with this, but depending on where in Victoria you reside I may be able to recommend a good solicitor who could help. Just let me know if you're interested.
If you're satisfied with the results of your question, then I'll ask you to please provide positive feedback so that I will get credit for the time spent on your question.
Before i commence legal proceedings would it be best to try and resolve the issue by asking him to sign over his 25% share due to his non payment? ( i suppose i'm referring to clause 27 of the deed). From what i can understand reading clause 27 is that we have the trustee and other unit holders have the right to exercise that option?).
Yes if you know a lawyer in Melbourne then that would be great.
Happy to provide the feedback so you can get credit, not a problem at all. How do i do this?