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syed niaz ahmed shah (CEO)     16 May 2012

What are the legal means to make your share holder pay

what are the ways to make your partner/shareholder pay the liabilities to your creditors, banks to the extent to his share holding , when the partner/share holder becomes obstinate not to pay and abondns the other partner/share holder on his own , especially when he has already taken many a times withdrawals more than he should have from the companies he was directly handking and now is shying off to take the responsibility.

what are my safeguards and what action i have to take in order to get them pay and ensure my creditability is not eroded in the market. 

the partner /shareholders have already resorted in changing my share holding in some companies, and has shown no motives to come forward to pay the liabilities .



Learning

 2 Replies

Anjali Sharma (advocate)     16 May 2012

Being a partner one cannot shy away from his liablitity, for which you can take legal recourse, as per the partnership deed. 

S Jadhav 98336 98330 (Jadhav & Associates)     16 May 2012

Partnership is a joint and several responsibility which means that all partners have to bear the profits/losses good/bad due to the partnership business together as per the partnership agreemnet and if one or more of the partners do not take their responsibility then the other partners have to bear the burden.


Also, have you registered the partnership deed ? If not then under the partnership law you cannot even take recourse to the law against your partner as it is a private matter between you and your partners.

A good alternative to such scenarios is to get into a LLP where all partners do not share the accountability/responsibility equally.

S Jadhav


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