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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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We are the major shareholder in a property business set up

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We are the major shareholder in a property business set up in November 2009 which has 70 plus properties in it's portfolio. The properties are rented out and we are responsible to pay repairs and maintenance . It became impossible to control due to it's size and constant bickering with the remaining five shareholders.We suggested that splitting up the portfolio would be the best course of action.After much to and froing both parties agreed who would have which properties based on their rental income- we would have 45% and they would have the remainder. The main administrator of the portfolio put together a scheduled plan which was that from OCT 1st 2012 we would have the financial split i.e. both parties would be responsible for repairs and maintenance of their properties, we would pay our share of the mortgage payments and they would pay their side of the mortgages due.The rental income would also be split to each side of the split and in this interim period it was verbally agreed that any rental income which belonged to our side but was paid in error to the the other side would be credited and repaid to us.
They failed to honour this arrangement and maintained that we owed them money which of course we did not as prior to October 1st 2012 we did not exist as a split business and therefore ALL accounts payable and receivable up to this date were the responsibility of the pre- split company. They are now still arguing that as we do not have a LEGAL CONTRACT then we have no right to take in rental payments although they reckon that we still have to pay all the accounts payable . From our perspective, we took them at their word as per their written schedule and set up our own company to look after our part of the portfiolio in October 2012 and with the complete split of the portfolio to take place from November 1st 2012. We reckon that as we had agreed who had what properties , we paid our part of the mortgage payments each month and we paid for all the remedial work from Oct 1st that this agreement became legally enforceable based on the acceptance of both parties of the terms in the schedule which THEY put together.
Your views please

This is rather complicated for a Q&A site such as this as you need to appoint a solicitor who is able to review all the relevant documentation and advise accordingly on how to protect your interests.

From what you have said, there is an express and implied agreement about the changes agreed and such an agreement would be enforceable in the courts as there were lengthly negotiations which took place prior to the October 2012 split and the fact that you formed a new company to manage your properties.

You appear to have good grounds to bring a court claim against them for the money which you are seeking from them and a good solicitor should be able to represent you against your former shareholders.

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