NSW Assign a contingent asset?

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TTS

Active Member
19 August 2020
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I am about to sell the majority of shares in my pre-CGT company. There was a large amount of money stolen from the company several years ago, and there is the potential to recover some of that through legal action. The purchaser doesn't want to pursue the legal action, as he's paying nothing for the contingent asset and doesn't want to be exposed to the potential costs of the action. Could the "cause of action" be transferred to another entity controlled by me, so that I can pursue it?
 

Rod

Lawyer
LawConnect (LawTap) Verified
27 May 2014
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Yes, but see a lawyer so it is done properly.
 

TTS

Active Member
19 August 2020
5
0
31
I am about to sell the majority of shares in my pre-CGT company. There was a large amount of money stolen from the company several years ago, and there is the potential to recover some of that through legal action. The purchaser doesn't want to pursue the legal action, as he's paying nothing for the contingent asset and doesn't want to be exposed to the potential costs of the action. Could the "cause of action" be transferred to another entity controlled by me, so that I can pursue it?
Thanks Rod, I'll get some advice.