Ask a Canada Law Question, Get an Answer ASAP!
Hello! My name is Debra (formerly known as Legal Ease). Thank you for your question. I'm reviewing it now, and will post back again shortly.
I am a lawyer in Canada and happy to help.
Did he sign a shareholder agreement with them?
When he earned his commissions was he an employee of the brokerage?
There is no need for a call. The site offers it. I am not offering it.
I am in Ontario.
So essentially, they owe him the money for the commission but he owes them the money for the shares.
If he sues he will succeed in getting his commission. But if he sues they will counterclaim and unless he can prove their breached their agreement with him they will win their lawsuit.
He made them a good offer but they are not required to take any offer.
So this is a civil and it may be that that rather than ending up in court he should retain a lawyer who can send them a letter threatening court if this cannot be resolved and then perhaps they consider a mediator?
There was a huge mistake made on all their parts and that is that there is no shareholder agreement so they don't have to buy his shares back. Had their been a proper agreement then there would have been a provision to deal with this.Does that make sense? He may not want to spend money on legal fees now but you can tell him that had he seen a lawyer from the start he would not be in this position now.Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.
He cannot force them to buy the shares back. He failed to have an agreement that would have had that provision in it.
His signature is not needed if their by-laws say only two signatures are needed. I don't know what they say, what they signed with the bank or what they agreed to.
But he has no leverage unless they are harming him or the corporation. If they are he can sue as a minority shareholder using an oppression remedy.
But he cannot simply decide not to pay what he owes them and expect that things will continue on. He owes the corporation the money unless he can prove they breached their contract with him.
He can sell the shares if they were his but he hasn't paid for them yet. He has to pay all he owes first.
He could do the sale at the same time as he pays off them off. That would work.
You are not charged for going up and back with me.
I thought there was on shareholder agreement. If there is then his rights are set out there.
He has a right to all this information and documentation.He would invest more because he agreed to do so. He is incorrect unless they breached their contract with them. This is not where there is an asset and a debt. This is a binding contract. It is where someone buys a house and then doesn't pay the full amount at the closing date really if you are looking for an analogy. Then the excuse could be they saw they were not getting what they were told they were getting.
I am sorry for the delay. I had an unexpected visitor.
I don't know what the charge is as I don't work for the site. I am a practicing lawyer and I just log in the way you do and see a list of questions and choose which to answer.
No the home buyers would not at all just lose their deposit. They would be sued for breach of contract and would be liable for all damages sustained by the seller.
The mediator has no decision making role. They are trained to assist parties to come to an agreement.
Is there anything more I can help you with at this point in time?