Good morning name is Tsholo, I need your...

Asked by Tsholo on 20-06-2022 11:22:50
Question posted in the General Law category relating to Gauteng

Good morning name is Tsholo, I need your help and your advise. The matter is as follows:My husband's been working for this company for almost 15yrs, he's a director and a 25% Shareholder in the company.When he started working for that company, there he signed a contract that stipulates that he'll be buying the 25% Shares, that the loan will be payable in 10yrs, that he will not be getting his full salary and dividends until the loan is fully paid. That contract was signed by the CEO, another director and himself.It's been almost 15yrs now and he's not getting anything. When he speaks to them about that contract they tell him that it doesn't exist anymore. It's a white owned company and my husband is the only black director, they brought him to the company for BEE purposes, using him as a front. The company is making close to R18mil a month and he's not getting anything not even his dividends at the end of the year. He's earning R30k net since he started working there, even now, other white employees are earning 3 to 4 times more than him.I'm written this with a broken heart ???? of how they have mistreated him. He's even scared to report the matter because he things most people from the Department of Labour take bribes, and he's scared that he might lose his job if he reported the matter. we don't even own a house, I'm writing this to you as my last resort because I don't know what to do. Please advice???????? 

Message from the Lawyer

Posted by Att. Patrick on 05-07-2022 15:00:15

Hi there and thank you for your question,

I am a practicing attorney based in South Africa and I will assist you with your question. Please feel free to ask as many follow up questions in order to clarify your question. If you have a new question, you must please open a new thread.

Please keep in mind that our discussions is for general information purposes only. Our engagement on this website does not create an attorney-client relationship. 

Do you mind if I take a moment to review your question? I will come back to you shortly!

Message from the Lawyer

Posted by Att. Patrick on 05-07-2022 15:06:45

Your husband needs to bite the bullet and go to a private lawyer and stand up for his rights! If he signed an agreement to buy shares, and the shares were going to be paid using dividends and some sort of salary sacrifice, then he is entitled to those shares. He can't just sit back and do nothing. 

By going to see a lawyer and fight for his shares, he will obviously upset his "partners", but what else can he do? 

If the shoe was on the other foot, I can guarantee you that the "partners" will fight tooth and nail for their shares. 

What documentation does he have? Is there a signed agreement? Was he ever issued with a share certificate, or is there a shareholders agreement?

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