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Partnership Disputes

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MESMITH01

Guest
I am a 50% owner of a small business. my partner has recently started taking large amounts of money from the company, he calls his pay check. he pays no taxes, has let the liability insurance run out. and pays employees cash. he has control of the checkbook so i cannot access any funds. asked him to buy me out and he offered an embarrasssing offer. how do i shut the business down? what rights do i have as half owner. how can i keep him from selling off all the equipment a pocketing the cash?
we have no legal contract betwwen us. we are a corp.
 


JETX

Senior Member
The most obvious answer to your question is...
What does the partnership agreement say about the issue of disputes, finances and even termination of the partnership????
 
L

loku

Guest
You can bring a shareholder’s derivative suit against your partner. That is a suit on behalf of the corporation against him. The things he is doing are not legal and they are bad business, so the court would find against him for any damages he has cause, including the loss of goodwill. If a significant amount of money is involved, I suggest you contact a corporate law attorney in your state. If it is a small amount of money, then consider taking this to Small Claims court.
 

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