Hi All,
Seeking advise desperately please... Here is my story
I had naively entered into a business with my friend as a sleeping partner years ago. I was given 15% of the shares of the Private Limited Company X. Company X then bought over Company Y and Company Z. I am not a registered director of any of the Company X, Y and Z.
While Company Y is doing ok, Company Z is bleeding badly and we could not realized any profit throughout the years. In fact, we exhausted all the initial cash capital and had to pump in some company loans. I trusted my friend a lot and never once asked for a financial statement throughout the years. I did suspect some amiss and my hubby also warned me to be careful but I was in denial. So my bad and I totally deserved what happened next.
Recently, my friend approached me to discuss cash injection instead of putting in company loans. We have creditors chasing us for debts of Company Z. My hubby did an ACRA search and he found out that somehow Company X no longer owes the profitable Company Y. Company Y now owed by my friend and another of her new business partner. Company X only owes Company Z which is in bad shape financial.
I am very upset and depressed. What are my options knowing that:
1. There is no value in Company X which I owe 15%. In fact it is in debts because of Company Z.
2. Company X no longer owe Company Y. Which I wasn't informed.
How can I clear this mess?
1. Can I legally disown my shares 15% in Company X and give up them all up to my friend? (Major Concern)
2. I understand that I might have to write off all my initial investments, but can I chase back the company loans that I had pumped in (Minor Concern)
Do I have any other options?
Appreciate your advise
Sotong44