Some legal advice in group dispute.
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Some legal advice in group dispute.
Some friends of mine are part owners of a group owned aircraft. All the owners except one want to sell the aircraft, but the one who is refusing is a named trustee for the group (one of two). The rogue member is clamming the aircraft cannot be sold unless he signs the paper transferring the aircraft, which he says he will refuse to do. His parting shot was make me an offer I cannot refuse!
The group have contacted the CAA who seems to have backed the member’s position that he has to sign. I find all this very hard to comprehend, so is there anybody on the forum who can give any advice?
Rod1
The group have contacted the CAA who seems to have backed the member’s position that he has to sign. I find all this very hard to comprehend, so is there anybody on the forum who can give any advice?
Rod1
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Been there!!!
First question is what do the group rules say about winding up the group? Often a forgotten part of the rules, but deadly if not included.
All decisions for us are based on a majority vote, although we do have a fall-back in critical decisions that the vote is weighted by proportion of shares owned.
The Trustee does not in himself have a veto - he is just the named contact required by the CAA. The group could write to the CAA and explain the situation and ask that a change of contact should be registered - these should be the names on the trustee grid they already have registered with them
First question is what do the group rules say about winding up the group? Often a forgotten part of the rules, but deadly if not included.
All decisions for us are based on a majority vote, although we do have a fall-back in critical decisions that the vote is weighted by proportion of shares owned.
The Trustee does not in himself have a veto - he is just the named contact required by the CAA. The group could write to the CAA and explain the situation and ask that a change of contact should be registered - these should be the names on the trustee grid they already have registered with them
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Why is he refusing? Is it a question of not wanting to part with the aircraft or is he unhappy with the price?
Joint ownership of an aircraft involves all of the owners having an interest in the proceeds of sale plus any profit derived from the operation. The trustee holds the aircraft on behalf of the beneficiaries of the trust (ie the co-owners). A trustee is under a legal duty to act in the best interests of the other owners and any owner can require the sale of the property.
The trustee cannot unreasonably refuse permission for the aircraft to be sold and you could obtain a court order removing him/her as trustee or requiring him to allow the sale to go ahead. Although there would be an expense (possibly quite a lot) to taking the trustee to court he is likely to be liable for the costs.
If he is not amenable to discussion, your best bet would be for the other owners to write to him threatening legal action and pointing out that he will be liable for the costs of such action. Better still would be to get a solicitor to write although this will cost you a few quid.
Joint ownership of an aircraft involves all of the owners having an interest in the proceeds of sale plus any profit derived from the operation. The trustee holds the aircraft on behalf of the beneficiaries of the trust (ie the co-owners). A trustee is under a legal duty to act in the best interests of the other owners and any owner can require the sale of the property.
The trustee cannot unreasonably refuse permission for the aircraft to be sold and you could obtain a court order removing him/her as trustee or requiring him to allow the sale to go ahead. Although there would be an expense (possibly quite a lot) to taking the trustee to court he is likely to be liable for the costs.
If he is not amenable to discussion, your best bet would be for the other owners to write to him threatening legal action and pointing out that he will be liable for the costs of such action. Better still would be to get a solicitor to write although this will cost you a few quid.
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Legalapproach,
Thanks for the advice. He does not want to sell and is attempting to get the rest of the group to allow him to buy them out at a price he cannot refuse, ie a lot less than the agreed value. The value of the aircraft is agreed by the group every year, so should be no problem there.
Rod1
Thanks for the advice. He does not want to sell and is attempting to get the rest of the group to allow him to buy them out at a price he cannot refuse, ie a lot less than the agreed value. The value of the aircraft is agreed by the group every year, so should be no problem there.
Rod1
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The persons on the CAA register are trustees, which means that they hold the register in their name on behalf of the group as a whole. Subject to any rules to the contrary, the group can vote to remove any person as trustee and add someone else. The retiring trustee would then be obliged to sign to remove his name from the CAA register. If he were to be voted off the group then he would no longer be part owner of the aircraft.
Unfortunately, if the individual concerned refuses to sign the only way forward is an application to court. Maybe the threat would be enough.
Unfortunately, if the individual concerned refuses to sign the only way forward is an application to court. Maybe the threat would be enough.
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He does not want to sell and is attempting to get the rest of the group to allow him to buy them out at a price he cannot refuse, ie a lot less than the agreed value.
Why not suggest it is marketed and then he, with his intimate knowledge of the beast, can bid a quid more than the best offer and buy it if he wishes. That way is fair to all (except perhaps the poor sod who puts the offer in).
It's not unreasonable to expect him to pay a fair market price and for the others to accept market value rather than a figure they would like it to be worth.
Mike
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Hi Mike,
I think the guy wants the aircraft a substantial discount and is attempting to blackmail them into it, but that is just my personal opinion.
Again, thanks for the advice I will make sure it gets passed on.
Rod1
I think the guy wants the aircraft a substantial discount and is attempting to blackmail them into it, but that is just my personal opinion.
Again, thanks for the advice I will make sure it gets passed on.
Rod1
