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Need legal advice regarding business agreements

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nolly


Arresto Menor
Hi Atty,

After my retirement from my job in the Philippines, I invested some of my retirement money in one of private schools in Davao city. We had an agreement signed by an attorney, the school administrator, me as investor and two witnesses. Under the agreement, I shall receive a 5% monthly share from the total amount I invested. and that I can withdraw my money without impediment provided I issue a month advance notice. The agreement is renewable every year. However, after I got a job here in Saudi last year, I have not followed up renewing of the contract. I told the administrator to just have it accumulated and I will just take it once my Saudi contract is done. Last March, I came home for a vacation and also to see the administrator but seemed she kept on hiding from me. I left the country again without seeing her. I sent a letter to the administrator before my vacation, stating my intention to withdraw my investment but she never replied.

What legal advise can you give me? I have only my wife in Davao who can represent on my behalf.

ano po kaya ang pwde kong gawin makuha ko lang yong na invest ko including my share interest?

I really appreciate we have this kind of site. Malaking tulong po sa aming mga ofw.

Salamat po in advance.

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nolly


Arresto Menor
I will appreciate receiving a reply soon.

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Lunkan


Reclusion Perpetua
I know only a bit of the Filipin laws, but I answer in point of view of them and how it's in some western countries (the Phillppine lawshave many influences from Spain and USA).

The assistant would get harder to avoid contact, if your wife GO to school to look for the assistant.

First I would try to check how are the business result and assets. =Check if it's worth going to court IF necesary.

I GUESS you haven't got pay by the school are short of money.
Is the administrator also owner? It's possible the administrator have put your 5 % per month in his/her OWN pocket. If so it's FRAUD.
Fraud can give PRISON
while doing bad business CAN'T.

It's a question of too how big/small share you would get if it the school company will be liquidated.

Do the contract say it's an
/investment
/or a loan?
(You call it "investment" but the details you tell seem more as a loan.)
If I have understood corect, it's against the law to get 5 % interest per month for LOANS Smile - BUT a big part of the loans in Philippines don't follow that law, BUT it can perhaps be a problem if going to court, having such document as proof...

Do the contract say anything about collateral?
If liquadation there is a priority order.
I suppouse there are such order to be paid. (I don't know which position salaries have in Philippines, but probably before investors.)
1. Taxes
2. Registered collateral loans
3. Not registered collateral loans.
4. Depts to suppliers
5. LAST investors.

What type of company is the school? (=Limited or one person responsible for debts? But mostly it isn't any big difference, because not much extra if the responsible person don't have any other assets.)

If you believe there would be enough left for you, you can go to court, but such take long time, and can cost much money.
If the school have any money, you can try threatening to go to court.

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nolly


Arresto Menor
Thank you for this advise.

The contract says it's an investment with principal earning 5% every month. There is a written agreement between the two parties. As of this writing, my total investment would have gone to more one million pesos, by 2015 it would be 2.5 million pesos.

You're right the administrator also is the owner of the school. It's a corporation actually, owned by it's faculty (whom investors themselves) and some outside individuals like us.

so much for me is at stake here..while the school is making business, some (investors) are not receiving what was due to us.

The agreement does not say anything of collateral or liquidation in case the school declares bankruptcy.

do we have strong case if we file a case of FRAUD?


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Lunkan


Reclusion Perpetua
Well. A bit odd calling it an "Investment" in a company, but not give you any shares, so PERHAPS it can be seen as a loan (which is better Smile =Higher priority than share holders if it become liquidation.

I don't know the Philipplines laws for when a company have to liquidate, but I suppouse it has to if it has to litle assets compared to depts.

If it's fraud or not depends of how the school business RESULT is and what's done with the money there are any profit.
/IF the school don't earn enough to pay the costs, then it's just an unpaid loan/bad investments. That's IF the owner have got NOTHING.
/But IF the owner have got something SELF, then it can PERHAPS be fraud. Not sure if the owner have got ust a common level salary, but MY oppinion is it's fraud if the owner have taken more than that (perhaps even if have taken salary) but I don't know what a court would say.

---
May I ask what you have worked with/what knowledge you have?
I ask because perhaps I will start a Franshise within education Smile and perhaps you are interested in having a district of it. (But it's a much other type than a common school. This is hard work the teach days, but only few teach days needed per month. I know it's a big NEED for such in Philippines, but I don't know how hard it is to get students, who can pay the fee - which they earn back fast if they use what they are teached.
In difference from your investment, the franshisers KEEP CONTROL over almost whole the investment =The equipment they need SELF, (which rather many have allready anyway). The start franshise fee will probably be very low, because I realy want this to be spread, because the Philippines realy need to be better at this type of knowledge. But I haven't decided yet if this will be what I will start when I have moved there, because I will have to travel much more than for other business idea, and I don't like traveling Smile

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garthbishop


Arresto Menor
I have just WON 2 CASES AGAINST A SWINDLER FOR "COLLECTION OF SUMS OF MONEY'. One of the cases was for UNPAID INTEREST.... The Lending Company called itself xxxxxxx LENDING INVESTORS but (NOT REGISTERED TO DO INVESTING)... On the contract i was called THE INVESTOR... But the JUDGE called the CONTRACT just a LOAN... I had proper LEGAL CONTRACT DOCUMENTS... THE SWINDLER JUST CLOSED HER LENDING BUSINESS WITHOUT NOTICE TO ME...

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iceman_reman


Arresto Menor
Hi Nolly, you have to verify first with the school, if it is still existing, whether your investment was legitimate. Otherwise, you may file a swindling case against the administrator and his conspirators. If indeed your investment was legit, your recourse would be against the school itself with the current administrator. In either case, you may file a civil case against either of them for the recovery of your money plus damages and attorneys fees.

I hope this helps.

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nolly


Arresto Menor
Lunkan wrote:Well.  A bit odd calling it an "Investment" in a company, but not give you any shares, so PERHAPS it can be seen as a loan (which is better   Smile   =Higher priority than share holders if it become liquidation.

I don't know the Philipplines laws for when a company have to liquidate, but I suppouse it has to if it has to litle assets compared to depts.

If it's fraud or not depends of how the school business RESULT is and what's done with the money there are any profit.
/IF the school don't earn enough to pay the costs, then it's just an unpaid loan/bad investments. That's IF the owner have got NOTHING.
/But IF the owner have got something SELF, then it can PERHAPS be fraud.  Not sure if the owner have got ust a common level salary, but MY oppinion is it's fraud if the owner have taken more than that (perhaps even if have taken salary)  but I don't know what a court would say.

---
May I ask what you have worked with/what knowledge you have?
I ask because perhaps I will start a Franshise within education   Smile   and perhaps you are interested in having a district of it. (But it's a much other type than a common school. This is hard work the teach days, but only few teach days needed per month. I know it's a big NEED for such in Philippines, but I don't know how hard it is to get students, who can pay the fee - which they earn back fast if they use what they are teached.
In difference from your investment, the franshisers KEEP CONTROL over almost whole the investment =The equipment they need SELF, (which rather many have allready anyway).   The start franshise fee will probably be very low, because I realy want this to be spread, because the Philippines realy need to be better at this type of knowledge. But I haven't decided yet if this will be what I will start when I have moved there, because I will have to travel much more than for other business idea, and I don't like traveling   Smile

*******************************************

Well for almost 1 and a half years, there was no problem at all. It was only last year that I am not receiving my share in full and when I had the chance to work outside of country I had no in anyway been able follow up regarding my share because she kept hiding from my wife and no deposits have been made from then on.

I know the school is earning. It even has a school canteen and a book store business operating in the same building they're renting. The school is very much involve supporting scholarship programs like sports and for poor/ out of school youth. Sunday school also is offered free for barangay scholars who could not afford. The owner is in fact the president of all private schools in the country. She's a graduate of Ateneo de Davao University. Teachers are also well paid and they are also part of the corporation.

So you are planning of moving huh? May I ask from what country are you?

Well I had been in teaching work before after I finish my engineering degree. I can teach mathematics if you're planning putting up one school he he he.

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nolly


Arresto Menor
garthbishop wrote:I have just WON 2 CASES AGAINST A SWINDLER FOR "COLLECTION OF SUMS OF MONEY'. One of the cases was for UNPAID INTEREST.... The Lending Company called itself xxxxxxx LENDING INVESTORS but (NOT REGISTERED TO DO INVESTING)... On the contract i was called THE INVESTOR... But the JUDGE called the CONTRACT just a LOAN... I had proper LEGAL CONTRACT DOCUMENTS... THE SWINDLER JUST CLOSED HER LENDING BUSINESS WITHOUT NOTICE TO ME...

 Crying or Very sad  then how should I proceed with my case? You have just won two cases..well, can you represent me? for the cases you have just won, may I ask how much were at stake?

Thank you in advance for responding.

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nolly


Arresto Menor
iceman_reman wrote:Hi Nolly, you have to verify first with the school, if it is still existing, whether your investment was legitimate. Otherwise, you may file a swindling case against the administrator and his conspirators. If indeed your investment was legit, your recourse would be against the school itself with the current administrator. In either case, you may file a civil case against either of them for the recovery of your money plus damages and attorneys fees.

I hope this helps.

Hi there Mr. Iceman,

first of all thank you for taking time.

The school still exist in fact the owner is the current President of all private schools in the Philippines.

I am just confuse regarding investment legitimacy. We have a signed agreement contract, both parties, two witnesses and signed by an attorney. It says there that the contract is renewable every year. I have still the document and a certification of investment bearing the owner signature with school seal on it. Can this be considered legit? One thing I flawed was I haven't followed up for a renewed contract since I was receiving my share for more than a year... but I have investment certificate . I know this is not legal per se well what business entity even banks give such high interest value for capital...it was just trust between parties this agreement was drafted..she needs computers, additional classrooms for kindergarten and Info tech class..so 3 investors agreed to loan including me... the school depends on tuition fees before we get the share..

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iceman_reman


Arresto Menor
check the certificate if its genuine. kindly confirm it with the school concerned. if its genuine, you need not to worry coz even if you have not express your renewal, it doesnt mean that your capital and the shares in the profit are forfeited. you may still insist in getting them. but if the certificate is not genuine as confirmed by the school, then we have a case of swindling.

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