Hey guys. I have a question regarding the Corporations Act, at least that's what I think it is about. We have a company constitution (which I believe is pretty much the standard one, if there is such a thing) and on the front of the document it also says "Corporations Act" and "A Proprietary Company Limited by Shares".
By the way, I have marked this as NSW as that is where the company is registered, but I am located in WA.
So anyway, I am involved in a company with several others and we usually each put in money into the company in the form of "loans", which I think is the correct term. However we have one useless member who doesn't do anything, is never around and for the last loan installment never put any money in.
So, to help get this member to put money, the directors recently issued a new share offer, which obviously if said member doesn't pay in time their stake in the company will decrease.
However, I myself am also not in a position to buy the new shares as I'm currently out of work and don't have the funds.
Now seeing as I have probably put more work into this company than anybody else, I do not want to lose any stake in the company; however I realize that if I don't buy the shares I will, basically if the useless member and myself don't buy the new shares than my stake will go to about half of what the other member's will have.
I have spoken with the directors about this and said I'd be ok with it if I could then have the opportunity to repurchase said shares when I am able to, but they told me that they cannot offer just my shares without offering everyone else shares too - is this correct?
Is there anyway under commercial law that I could get my stake in the company back after the fact or would the best idea just be to cancel the share offer until I have the funds to buy the new shares?
Thanks!
By the way, I have marked this as NSW as that is where the company is registered, but I am located in WA.
So anyway, I am involved in a company with several others and we usually each put in money into the company in the form of "loans", which I think is the correct term. However we have one useless member who doesn't do anything, is never around and for the last loan installment never put any money in.
So, to help get this member to put money, the directors recently issued a new share offer, which obviously if said member doesn't pay in time their stake in the company will decrease.
However, I myself am also not in a position to buy the new shares as I'm currently out of work and don't have the funds.
Now seeing as I have probably put more work into this company than anybody else, I do not want to lose any stake in the company; however I realize that if I don't buy the shares I will, basically if the useless member and myself don't buy the new shares than my stake will go to about half of what the other member's will have.
I have spoken with the directors about this and said I'd be ok with it if I could then have the opportunity to repurchase said shares when I am able to, but they told me that they cannot offer just my shares without offering everyone else shares too - is this correct?
Is there anyway under commercial law that I could get my stake in the company back after the fact or would the best idea just be to cancel the share offer until I have the funds to buy the new shares?
Thanks!