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Post Info TOPIC: Director/employee unfair closure of business
Anonymous

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Director/employee unfair closure of business
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My husband partnered up with two associates about nine and a half years back, as he was unable to open up business accounts, etc to grow his business. About a year and a half ago his partners changed it to a PTY Limited. He was the only director who worked for the company (A) and earned a monthly salary. Business have been up and down. Four and a half years ago his business did so well that the other two partners decided to buy him a double cab to use for business. The last year has not been so great and there were times where his partners’ business (B) had to help out financially to pay salaries. There were other occasions where the partners (B) also borrowed money from his business (A) and in time paid it back. About two months ago his partners took out R200,000 from the business account (A) and never put it back, said they didn’t have the money as their business (B) haven’t been paid. They never discussed this with my husband. This ended up resulting in my husband not being able to pay his main supplier and therefore he could not supply his customers. The one partner a few years ago also took R200,000 out of the business account (A) as a loan to his son-in-law, which he pays back in small amounts every month (not sure if he is currently only paying back the interest or the capital. My husband does not have access to the bank accounts or financial details. The end result is that his partners say that the business (A) owes their business (B) R980,000. He has for years argued this, saying that the bookkeeper never captured the finances correctly. Even with the stock capturing there was huge differences in the actual vs the captured stock. He had to many times request the office lady to amend her figures as she captured invoices, etc incorrectly. On Thursday, without warning they called him in to say they are pulling the plug and closing down the business. They also emailed all his suppliers that morning closing down his accounts. They took his bakkie, the eight deep freezers, the delivery truck and gave him one months salary and dropped him off at home. He still had over R200,000 owed to his business that his partners are collecting. Further that morning there was a rebate from SARS to the amount of R95,000 that they never told him about. They said as he was a director he cannot get a letter of retrenchment, thus not being able to claim from the UIF. My questions: 1) Can one not force an independent audit to be done on the books? 2) Is this not a form of “unlawful dismissal? 3) Could they not have resigned as directors and leave him with the company and left his accounts open for him to sort out? 4) Would we be able to go to the CCMA with this? We are not in a financial position to afford legal advise.

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