How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask WCLawyer Your Own Question

WCLawyer
WCLawyer, Attorney
Category: South Africa Law
Satisfied Customers: 14815
Experience:  L.LB (UOVS)
32244620
Type Your South Africa Law Question Here...
WCLawyer is online now
A new question is answered every 9 seconds

I have signed a associate agreement with a partner. He is now

Resolved Question:

I have signed a associate agreement with a partner. He is now taking so much control over my business and i am becoming a victim and forced to sell shares. How can i get out of this, or what can make the agreement null and void? Please help.
Submitted: 1 year ago.
Category: South Africa Law
Expert:  WCLawyer replied 1 year ago.
Good day.

This is an info request to assist you better. Please continue on this thread.

How are you forced to sell shares?
Customer: replied 1 year ago.

I dont want to sell me share. but he is implementing policies and procedures in the company without my consent, making decision making contributions impossible. the working conditions is also unbearable.

Customer: replied 1 year ago.

we are suppose to have a 50% partnership, but he is taking 100% control, doing just what he wants. surely the agreement becomes null and void if the partner is not favouring the other partners. how can i solved or get him out of this?

Expert:  WCLawyer replied 1 year ago.
Let's begin from the start:

Do you have your own company and he has his own company and you entered into a kind of a joint venture company?
Customer: replied 1 year ago.

no it is my company. i had a problem with some funds and was looking for a partner to get more funds. he invested R150K for 50% shares in my company.

Expert:  WCLawyer replied 1 year ago.

And is this a CC or a Pty Ltd or was it a Sole Proprietor when he bought?

Customer: replied 1 year ago.

cc

Expert:  WCLawyer replied 1 year ago.
Did you and the other person draw up an association agreement when he came into the CC?
Customer: replied 1 year ago.

yes, we did, that is my question.

Expert:  WCLawyer replied 1 year ago.
And, with how he conducts himself now, is he in contravention of that agreement? Is he doing things that he is not allowed to do in terms of agreement?
Customer: replied 1 year ago.

yes he is

Customer: replied 1 year ago.

The agreement does not mention anything about behaviour. It mentions that whatever is done for the business must be done mutually by both members. But he assumes that he is running the business.

Expert:  WCLawyer replied 12 months ago.
And this is causing damage to the CC or to you personally?
Customer: replied 12 months ago.

Damage to both me and the cc. I have started this company from scratch 3 years ago, and i thought that the partnership will help, but all turned the other way. what can I do? i want him out.

Expert:  WCLawyer replied 12 months ago.
Other than buying him out at an amount that is agreeable to you both, the only other thing that you can do is to approach the High Court to order the cessation of his membership interest under Section 36 of the Close Corporations Act.

A copy of the Act can be obtained here.

It is, unfortunately, going to have to be High Court and you would have to obtain the services of an attorney. The Section says that the court can make any order it deems fair, which can include an order that you pay him back the loan, but if your attorneys address the issue of damages, chances are that the court will take that into account before it makes a decision on whether he is entitled to anything.

It is, other than a negotiated settlement, your only option, unless the association agreement makes provision for a procurement of the membership interest from one member to another.

I am not sure what else I can advise you on, but if you have follow up questions before you rate, feel free to ask them at no extra cost. If you are satisfied with the service, kindly rate it positively. I do not get anything unless you rate the service.
WCLawyer, Attorney
Category: South Africa Law
Satisfied Customers: 14815
Experience: L.LB (UOVS)
WCLawyer and other South Africa Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • PHINEAS MOTAUNG

    Attorney

    Satisfied Customers:

    113
    BACHELOR OF LAWS
< Last | Next >
  • http://ww2.justanswer.com/uploads/tumi65/2009-12-28_9197_BABA_I_FRIENDS_013.jpg PHINEAS MOTAUNG's Avatar

    PHINEAS MOTAUNG

    Attorney

    Satisfied Customers:

    113
    BACHELOR OF LAWS
  • http://ww2.justanswer.com/uploads/emil102/2010-05-04_160842_IMG000806.jpg Emil's Avatar

    Emil

    Attorney

    Satisfied Customers:

    33
    BCom Law LLB, 3 years post article experience as attorney
  • http://ww2.justanswer.com/uploads/Lurine/2010-10-04_101308_LCP.jpg LCP's Avatar

    LCP

    Attorney

    Satisfied Customers:

    21
    BCom (Stell) LLB LLM
  • http://ww2.justanswer.com/uploads/KimGAtt/2009-11-04_164526_Profile.JPG K. Groenewald's Avatar

    K. Groenewald

    Attorney

    Satisfied Customers:

    19
    LLB (Pret). Extensive litigation experience in general civil & family law matters. Debt Counsellor.
  • http://ww2.justanswer.com/uploads/SA/SATOPLAW/2013-9-13_13566_IMG20130304WA000.64x64.jpg Shaie Zindel's Avatar

    Shaie Zindel

    Attorney

    Satisfied Customers:

    1052
    All areas of commercial and contract Law - specialist in property advice.
  • http://ww2.justanswer.com/uploads/IN/inciteadvisor/2013-9-5_193316_incitead.64x64.jpg inciteadvisor's Avatar

    inciteadvisor

    Commercial Lawyer

    Satisfied Customers:

    814
    B.Com LLB Registered Corporate lawywer
  • http://ww2.justanswer.com/uploads/AN/AntonSmith13/2013-2-21_17147_Snapshot.64x64.png AntonSmith13's Avatar

    AntonSmith13

    Attorney

    Satisfied Customers:

    45
    LLB, LLM, Cert. International Law Attorney with 12 years experience