Summary of the Problem:
Mrs. Zeze found a message in her personal email referring to a special offer from an exchange broker stating that the said broker was ready to purchase for her very profitable limited liability company’s shares, in consideration of obtaining nominal brokerage fee and he sent her his mobile number and his address. Zeze went to the said address, met the aforesaid broker in person, handed over to him a big amount of money for the purpose of buying 1500 shares and agreed to pay the brokerage fee after purchasing the LTD company’s shares and registering them in her name for the purpose of personal investment. after two days, Zeze contacted the broker but his mobile was closed, she visited his office and found out that the office was closed and one person in the building told her that the said person had nothing to do with the said office!!
Summary of the Solution:
It is quite clear that Mrs. Zeze has been exposed to a fraud crime, if she had consulted any lawyer, the lawyer would have told her not to accept such fraudulent offer under any circumstances!! Why?! For a specific legal reason, under laws of most countries in the world , it is known that the limited liability company has portions (not shares) , such LTD company’s portions are registered in the partners’ names and cannot be sold and purchased in exchanges, if one of the existing partners wants to sell his\her portion to a new partner , then , the seller and buyer must sign portions sale and purchase contract and thereafter , the LTD company’s Articles of Association and its valid commercial registration must be amended by removing the old partner’s name therefrom and adding the new partner’s name thereto . It goes without saying that it is known to every lawyer, exchange broker or any dealer who deals in buying and selling shares in exchanges in most countries of the world that the shares which can be sold and purchased in exchanges belong only to public shareholding companies and companies limited by shares!!
We hope that the fraudster shall be arrested, tried, convicted, penalized and forced at the end of the day to return Zeze’s money. Generally speaking, we say: in order to stop repetition of similar fraud crime against any other person, all persons must know the following important legal information applicable in most countries of the world: in the one hand, shares that can be sold and purchased in exchanges belong to public shareholding company and shares of company limited by shares, in the other hand, LTD companies have portions (not shares) and that the LTD companies’ portions cannot be sold or purchased in exchanges under any circumstances!!
Advocate\Faisal Ali Addabi
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