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Daniel
Daniel, Solicitor
Category: Australia Law
Satisfied Customers: 5466
Experience:  Bachelor of Laws (dist) Graduate Diploma in Legal Practise. Admitted NSW Supreme Court / High Court
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Background Info: I have 60% of a small company (xyz pty

Customer Question

Background Info:
I have 60% of a small company (xyz pty ltd) share while my business partner has the rest 40%.
My partner doesn't pay his share of expense on time for months and I have been 'forced' to pay the expense bills on his behalf. He just ignores my repetitive requests to him to pay his share with no comments. I can't afford doing this any further - the business might even be forced to close down very soon.
Question:
What are the possible remedies/solutions to my partner's attempt to not carry out his responsibilities, when the communication is no longer an option?
Submitted: 1 year ago.
Category: Australia Law
Expert:  Daniel replied 1 year ago.
HelloWhat are the amounts that are paid by him?How much?As it is a company, ASIC can be contacted to look into the situation for you
Customer: replied 1 year ago.
As per around 2016.06.20, the shareholder document states 180000 share owned by myself and 120000 shared owned by him.By 2016.03.31, I paid around extra 10k for bill in advance on his behalf.
Currently the company has around 30k bill be paid immediately.
Expert:  Daniel replied 1 year ago.
HelloThese are significant figures indeed. I would suggest a formal letter of demand that the amount be paid immediately. Failing that, you are at liberty to initiate proceedings against him in court, ie to sue him for the amount and also find him in contempt of not acting in a decent fiduciary manner in the best interests of the company. From what I can see, you have a good case, as he just does not pay. So there are more than reasonable prospects of success one would think. Please click accept and rate my service. I am able to answer further questions after accepting at no further cost after doing so.
Customer: replied 1 year ago.
The awkward thing is that I don't have any his comments regarding to whether he wants to keep going with the business, or whether he favors a business closing down, and he also ignored my tentative suggestion to talk to someone who is interested in buying his share.The business is growing slowly and I really hope the business to not be closed down. So can I have your legal advise on the overall legal action planning? For example, step 1 is a demanding letter and what if he doesn't respond and simply pretend he didn't receive the letter ...Very much appreciate you assistance!
Expert:  Daniel replied 1 year ago.
http://www.districtcourt.justice.nsw.gov.au/Pages/case_types/civil_cases/starting_responding.aspxThe above info is for NSW, but is standard really nationwide. He should not ignore the letter.
Customer: replied 1 year ago.
Thanks Daniel. Okay, I believe that he should not ignore the demanding letter.Am I allowed legally to initiate an auction of some of the company assets to pay some unpaid invoices then?If we have any fines, service interruptions and other direct losses brought about by him failing to pay his share, how is it possible for me to claim loss from him during legal proceedings?Regards,
Jason
Expert:  Daniel replied 1 year ago.
Well you are at liberty to do so if the company constitution allows you to.If you do not have a constitution, or it is silent on that point, then you are allowed to. You can claim all payments that he has neglected.
Customer: replied 1 year ago.
That's cool. My contract is silent on the point really. Any procedure/formality do I need to follow/obey for to to organize an auction?
Expert:  Daniel replied 1 year ago.
No, but do give him some notice in writing. Allow him to at least try and make payment say in 7 days or the assets will be sold off. Please click accept and rate my service. I am able to answer further questions after accepting at no further cost after doing so.
Customer: replied 1 year ago.
Thanks Dan. Let's say my partner keep refusing making payment for his share of expense, in what circumstance could I apply the court to force him to transfer his share over to me and how could I make that happen if I keep paying his share of expense to not incur service interruption.Regards,
Jason
Expert:  Daniel replied 1 year ago.
Well in the Statement of claim you can seek that order also. That in the event he does not pay, he will relinquish his interests in the company.
Customer: replied 12 months ago.
Thanks Daniel. Here a few questions that I hope you can clarify before I can come up an action plan, thanks a lot!1. What do I need to supply for a lawyer to write up a letter of demand.
2. Do you provide writing Letter of Demand service? If yes, can you please advise the rate.
3. Can you adivse how long it will generally take from the time we bring this case to court to the time a verdict can be reached?
4. Am I allowed to get the company to pay legal cost?Regards,
Jason
Expert:  Daniel replied 12 months ago.
1. Everything! Give lawyers all related documents.2. Sadly no, I just give info.3. Within 6 months generally. 4. Yes, if successful you can seek costs. Please click accept and rate my service. I am able to answer further questions after accepting at no further cost after doing so.
Expert:  Daniel replied 12 months ago.
HelloI have not heard a response from you?I wish to assist. Please click accept and rate my service. I can answer further questions after doing so at no further cost.​I look forward to hearing from you.