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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31768
Experience:  Over 5 years in practice
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I am a one third shareholding Director of a subsidiary of a

Customer Question

I am a one third shareholding Director of a subsidiary of a larger Private Limited Company.
My company business partner supplied me with a form on Friday 27th Nov, entitled 'Acknowledgement of No Indebtedness' and has asked me to sign it before close of play today, to permit borrowing from banks to permit the acquistion of another company.
I have also been advised that by doing this, some equity will be released to the amount, coincidentally, of one third of what he advises is the value of the company.
I felt this was unreasonable to ask me to sign it without obtaining some legal advice.
His response was that if I didn't sign it, the money mentioned would not be released to me.
My concern is that he, as the 'majority' shareholder, is actually selling the company and needs me to sign this form to relinquish my share allocation. Is this what this form is used for?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you. I am a company law expert.
Can you copy the notice into this link for me to read?
What percentage of shares do you own 33.3%?
Kind regards
AJ