What right does a shareholder have to Financial Statements

[4GH1RH]

My parents have been living in Australia on a 4 year temporary business visa. In this time they have been partners and shareholders in a business. In order to apply for permanent residency, they need the Financial Statements from the business in order to prove that they are finanically stable and not likely to be a burden.

The problem is that the other partner in the business is stalling on the Financial Statements, despite numerous requests going back well over a year. The other problem is that the accountant for the business says that he has not been given the neccessary figures to prepare the financial statements for the past couple of years. Yes, it is a disastrous situation I know, but its the only hoe my parents have for remaining in Australia, as they are too old now to try again for another business visa.

Any ideas what rights they would have as shareholders to force the other partner to stop holding them ransom and get the financial statements done? We dont want a legal battle, as someone has to loose in that case, but no amount of pleading with this guy has helped.

I have not been involved as if I get involved there will be other legal issues and possibly a news headline!

Any thoughts most welcome, as their time is running out fast.

Thx

Cam

 

[geoffw]

My only thought (not helpful, sorry) is that if there's so much trouble getting the statements, there may be something to hide- and even if you do get those statements, they might not help.

I suspect it's time to get some legal advice- a preliminary consultation should not cost much.

 

[likewow]

Exactly my thoughts Geoff. The other partner might be 'cooking the books', what other motive would he have for not making them available beside stalling long enough for their visa to expire and them told to leave the country and him and the accountant left with the business....hmmmm... am i paranoid? No, just cautious when it comes to money. Perfectly normal people can do strange things when i comes to money, ive seen it happen.

See a commercial lawyer ASAP, do not pass go, do not collect $200.

 

[4GH1RH]

Thanks guys

I think primarily it is a greed and a power play rather than cooking the books. Secondarily I think it is disorganisation - a case of one person trying to do everything and succeeding at nothing.

I have engaged the services of a migration lawyer as a first step as that is the immediate problem. Will speak to the family lawyer next, and find a specialist lawyer if required.

I am still learning the value of paying for good advice, and I think spending some money earlier would have avoided this situation.

Why can't life be dull just for a little while...