Drip Footwear Founder Lekau Sehoana Sued For A Third Of His Company’s Shares
Drip Footwear Founder Lekau Sehoana Sued For A Third Of His Company’s Shares. Contractual agreements are supposed to be done in good faith and parties that enter into one should be fulfill their contractual obligations as this will determine whether a business is run successfully. Drip Footwear Founder Lekau Sehoana is being sued for 34% shareholding of his popular sneaker brand, the company is being sued by Alfred Mashiya, who according to Sunday World took Sehoana to court to demand that he transfer 34% of Drip Footwear’s shares.
According to Sunday World, Mashiya and Sehoana came into contractual agreement, where Mashiya was to loan Sehoana and the company an amount of R45 700 that would be used to pay for 200 sneakers. Sehoana was supposed to repay the loan with R18 000 as interest before December 31, 2019, and also pay Mashiya R100 from every pair of the first 5 000 sneakers sold. Their contract also stipulated that should Sehoana delay making the payments, he would then be entitled to gain 5% of shares after 24 hours of non-payment and 1% for each day the payment was delayed. Sunday World also reported that Sehoana acknowledged the contract agreement between him and Mashiya in an affidavit, and he said he could not honour the agreement due to his company facing financial difficulties because of the Covid-19 pandemic.
Sehoana changed the terms of the contract and proposed to pay Mashiya R200 000 in instalments by 31 July last year and a further R300 000 by November last year. Since Sehoana defaulted in making the payments he was ordered by Mashiya’s lawyers to pay Mashiya the full amount he owes him and transfer 34% of his company’s shares to him within 14 days. Its very important for business owners or entrepreneurs to enter into contracts and be able to achieve the terms that are stipulated, this way they can avoid contractual disputes that end up costing them and their company lots of money.
