I would like to know what are the steps to be followed when buying out another member's interest in a CC. No written agreement was ever signed, and this was never verbally agreed.
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Non member can be made to sell except by court order or liquidation of the CC.
Do you have membership agreement, if so look at the procedure in the agreement.
If not , then the procedure is to deliver a written offer. If their are more than 2 members the other members have to approve and consent to the sell of the membership interest.
There is no membership agreement in place. There are currently 3 members, member 1 and 2 would like to buy out member 3.As part of drafting the written offer, what things would constitute the offer? Is the offer drafted as at a certain date? Would the offer need to include future profit?
Normally a valuation is done on the CC by its accountants to come to a value. The value is determined by loan accounts, debtors, creditors and assets. Then a value is placed on the membership interest. The offer will in clude the offer of the lets say 33% at R ..... and to be paid with in 30 days of signature. This is the normal standards signed by the other 2 member either as purchaser or as member consenting to it. THe signature of the Seller is also needed.
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