Private investment advice

[TimL22]

Hi there,

I'm really desperate for some help.

I was introduced to a guy (has a famous footballing brother) who is setting up a new social networking business/website. After exchanging various emails, calls and messages on facebook, I agreed to invest and sent them the money (8000GBP) in good faith (stupidly), believing that I would receive a contract and then a share certificate shortly after. This was in December 2009 and I have yet to receive confirmation of my share, and I still haven't received any type of paperwork or certificate.

Due to the fact that it has been about 5 months since sending the money and not receiving anything, I telephoned the CEO of the company today (which is now a PLC) to ask them to return my money as I don't officially hold a share in the company and I can't play a waiting game forever. He has basically fobbed me off and said that I need to wait another two weeks for the certificate and only then can I transfer/sell the share. However, each time over the course of the past 5 months when I have asked either the CEO or any of his team about certificates or whatever, I am told that they are "about to be issued" - always the same response.

As I am not actually tied into a contract (I haven't signed anything at all), they have the money that I sent them and I have nothing in return, what options do I have legally to persue the money? Surely, what they are doing isn't legal.

Any advice would be really appreciated as I feel so helpless and frustrated.

Thanks,

Tim

 

[TimL22]

Sorry to bump so soon, but just wondered if anyone had had a read of my post and had any opinion?

I was thinking of going to the police and the papers, as the website in question has already been in the press due to the famous brother and they would possibly cover this, although I'm not sure it would help get my money back

 

[LawHound]

There does not seem to be a dispute over the fact you have shares or have invested so the matter in the first instance requires you to put in writing and send to the registered office a request for a share certificate to be issued immediately. You can then follow that up, if that is ignored, by a legal letter. For further help email us or PM us on here. As they are now a PLC there are a number of options open to you but chasing a company dispute via the press and police is not the way to get the result you want.

 

[TimL22]

Thanks so much for getting back to me LawHound! I really appreciate the advice.

I'll PM you with some more details later on if that's okay

 

[The Resolver]

I assume the emails etc make clear that you were to receive shares in the company. In that case this is a simple matter of contract. Was the percentage of the shareholding agreed? Was the whole of the £8K meant as the payment for the shares or was most of it to amount to a loan to the company. There are many other matters you need tying down, especially a Shareholders Agreement. It would not be sensible to just let them decide how the monies are to be categorised and how much in the way of shares to be issued. If this was not tied down in the emails etc then now is the time to do so .

I agree with Lawhound that perhaps you do not want to be going to the police/press etc but what I would say is that they should be left in no doubt that the fact that there is a newsworthy hook due to the brother and the fact that it has already been featured in the press is a factor that will work against them if they play fast and loose with you. Its therefore in all interests to sort this out quickly. But you must not just take what they offer but make sure they stand by what they had said before and also fill in the gaps that would be filled in by a Shareholders Agreement.

I resolve company disputes of this nature (see www.boardroommediation.co.uk) and would behappy to help out.