VIC Investor Trying to Force Me Out - What Can I Do?

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4 August 2014
My company bought the business legally and they transferred lease of the shop to my company name.

After a year, someone came to me as an investor, so he put some money and we change the lease to his company name. After nine month he is trying to force me out but I did not sell the business to him!

Can I do anything legally under commercial law or not?


Well-Known Member
11 July 2014
Hi there
You transferred the lease from your company to the investor's company, but you did not sell the business to the investor.

However, without being a party to the lease, your business is quite vulnerable unfortunately, even though you retain ownership and control of your company. You did not sell your business, however the transfer of your lease to another company gives that company rights which previously were rights held by your company. Another company which does not have your interests at heart but which is party to the lease (as with the company of this investor) can try to undermine your business by denying you the benefit of those rights which previously you had held (put more simply, they might try to kick your business out from its physical location).

What can you do to prevent this? Without being a party to the lease you're quite vulnerable. Depending on your relationship with the investor, you might try to negotiate a retransfer back to your company (of course, if he's trying to force you out that is pretty unlikely). Otherwise you might consider signing a new lease in a nearby location if that is an option for you.

Let's also see what other contributors have to say.
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4 August 2014
Thanks for your reply,
What about the stock which I had from my business in that premises and what about all work that I have done for his company, can I get anything from them?


LawConnect (LawTap) Verified
27 May 2014
Did you put any conditions on the lease transfer? EG Your business staying the premises?

Did the property owner consent to the change of leasee?

Did the property owner consent to the sub-lease?

What were the discussions around the investor investing into your business? Did you receive any money?

Did you transfer stock to his company? Have you got an agreement to charge him for work your company does for his company?

What happens if you move location and he is stuck with a lease he needs to pay? Does he have any income, or is he relying on your business?

Did he buy shares in your company? If so, what %?

Without more detail it is hard to know.