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Investment Withdrawal

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1 Investment Withdrawal on Thu Jun 09, 2011 10:14 pm

rafaelnandito


Arresto Menor
Sir,

Four years ago we were invited by our former bosses to form a company after about hundreds of us were offered early retirement from our previous company.

We were able to gather about 100 investors each investing a minimum of 300k to several millions.

The set up is simple, only active investors are allowed. Every investors have to be working for the company to be allowed to join.

This is because of the objective to have an Initial Public Offer in two or three years.

Several investment houses are created with about 20milion per investment house capacity. They assigned investors to this investment houses in preparation for the promised IPO.

I invested my hard- earned -the -future of- my- kids 3 million separation pay.

We were told from the start that we will have two roles: One is as an employee - that we will do our job and deliver the sales results and we will get paid for it.

Second is as an investor- that we just have to wait when the the dividends will be given or when to attend the investors meeting which is done annually.

So far no dividend has been issued since we started to us saying that the company is not doing well and always in the red and the prospect of doing the IPO is really almost impossible to happen.

At the same time January of last year there was a leak that several of us and now all of us know that the salary that the board members awarded themselves is incomprehensible at 500k to 150k a month.

Every year end since we are always in the red. They are now saying that the value of our investment is only 45%.

That if we are to leave the company now we can only get the 45% of our investment money.

Is there a way I can force them to give back the whole amount of my investment the moment I resign now?

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2 Re: Investment Withdrawal on Fri Jun 10, 2011 12:10 am

attyLLL


moderator
income of the board should not exceed 10% of the annual net income of the company.

unless you can clearly prove fraud, such are the risks of business investments.


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3 investment withrawal on Sat Jun 11, 2011 7:34 am

rafaelnandito


Arresto Menor
Thanks indeed for the response.

I understand the 10% rule.

My concern right now is if i can withdraw my investment and resign from the company.

Is it possible to get the whole value of my investment at least, I am not interested anymore with the interest or dividend.

I just want my money back and out of the company.

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4 Re: Investment Withdrawal on Sat Jun 11, 2011 10:58 pm

attyLLL


moderator
the answer is a qualified 'no'. you can sell your stocks to anyone at any price (unless you are a close company), but you cannot force the company to buy it back at a price it will not agree to.

there are certain instances where you can force the company to pay you the 'book value' of your stocks. this is called the appraisal right. read here: http://www.chanrobles.com/legal5title10.htm

or if you have leverage, then you can negotiate to get your investment back. but this is more a factual issue rather than a legal one.


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5 investment withdrawal on Tue Jun 14, 2011 10:19 pm

rafaelnandito


Arresto Menor
Thanks really for this.

But for now, I think i am not in a position yet to ask for it.

Plus the fact, I am really to my last thousand of pesos just to survive.

My fear is that the more I ask for it the more they will take it against me.

I don't really want to lose my job, at the same time not to be able to get my investment.

its really a choice between two unpleasant choices.

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6 Re: Investment Withdrawal on Wed Jun 26, 2013 1:54 am

rafaelnandito


Arresto Menor
Thanks for all the help.

Last year i raised these issues.

I am now in a different company.

but my investment is still in my previous company where i invested my retirement pay.

Question1. If we are not a close company can they cancel my shares of stocks if i sell it to other people aside from "active investors" as 'verbally' agreed during our incorporation where the buyer will be willing to give back at least 90% of the par value of my shares?

Question2. When you say leverage,what kind of leverage can i have to encourage our company to give back at least a fair value of my investment?

Question3: Can we as investors, at least demand a official status of the company, and official valuation of our investment. How do we do this?

Thanks so much...

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7 Re: Investment Withdrawal Today at 11:34 pm

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