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Reply To: My minority shareholder owns 40% and is unreasonable. I have had to put in 140k of family money into our business to keep it surviving and I need to extend the bank loan to survive. What do I do?

Hi Ryan

This is something that is perpetually an issue with small jointly owned businesses – I don’t know how many times I have provided advice on these sorts of issues of my 35 years in restructuring.

It really boils down to getting the right advice before committing to introducing more funds or providing additional security, and armed with that advice deciding whether it is time to pull the rug maybe, or try and enforce a resolution with your business partner [can depend on terms of shareholders agreement and other things, so isn’t a generalistic approach].

A shareholder dispute under the uncertain times will either get pushed to its limits, or you never know be the catalyst for getting a resolution.

I’m happy to talk to you off line – you can reach me via http://www.arcadidanconsulting.co.nz, or alternatively you could reach out to a http://www.ritanz.org,nz accredited insolvency member or insolvency lawyer to get advice based on your specific circumstances. You should get free advice in the first instance, would only be subject to charge if the adviser starts to expend significant time and effort, so just watch out for that.

A shareholder dispute under the uncertain times will either get pushed to its limits, or you never know be the catalyst for getting a resolution.