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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10623
Experience:  Barrister 17 years experience
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I invested in a property development with two other partners

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I invested in a property development with two other partners and we established a deed of trust. At the time I was going through a separation with my partner and had taken on a new job, I found it difficult to concentrate on the day to day running of the business which was mainly left to my associates. one of my partners remortgaged to help secure the property,
And in agreement this was to be repaid through the sale proceeds. At one point I injected more money into the project to keep it going above my initial input, which was to be paid back as part of my investment.
Once the property was sold, we began the process of auditing our books, only to find a large sum of money missing, which had been spent buy the person who remortgaged his property.( He is the main share holder) upon questioning, he initially denied any abuse of our business account so we had a proper audit done through our accountants, who came to the same conclusion. He then apologised saying that he'd used the wrong card in error! But what also came to light, was that he had set up a direct debit with a finance company through our Ba account.
In our deed of trust, we evoked a clause which is basically two against one. We instructed our solicitor to only release our initial input, and to retain the profit until we have a account on where the money went.
This has provoked him and is now questioning by way of legal advice my shares in the project through lack of involvement.
Does he have a case against me?
Regards
Gary
Submitted: 1 year ago.
Category: Law
Customer: replied 1 year ago.
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Expert:  Buachaill replied 1 year ago.
1. Dear *****, in a partnership such as this for property development, there is no rule of law that a partner's share is dependent upon input into the project. Accordingly, your business partner who is now questioning your lack of input into the project cannot reduce your share as a result. In essence, he has been caught with his pants down and he is reacting badly to it.
Expert:  Buachaill replied 1 year ago.
2. What governs in a situation like this, is the Deed of Trust or any shareholders' agreement which might have been entered into by the partners. Involvement might determine what salaries, if any have been agreed, that the respective partners might receive. But it does not govern the respective shares each partner receives.
Expert:  Buachaill replied 1 year ago.
3. Be aware that it is fear on the part of the partner who misappropriated the money which is driving this issue. he could be prosecuted for fraud. Both criminal and civil sanctions could lie against him. His solicitor has told him this and this is now his method of "fighting back".
Expert:  Buachaill replied 1 year ago.
4. There is also the issue that this partner who misappropriated the money may now not get back what he had planned. Chances are that he is in financial difficulty as a result, so this is why he is so aggressive now.
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