Legal Question in Business Law in Massachusetts

My business partner refuses to show me bank statements, is opening up numerous dba accounts under people's names, and is failing to pay the rent and bills for where we lease. What can I do?


Asked on 6/10/15, 12:03 pm

2 Answers from Attorneys

Assuming you have a partnership agreement, demand that he show you the books and the bank statements. If he is opening accounts in other persons names he better have an authorization to do that and more importantly, why is he doing it.

If he refuses all you can do is sue him and dissolve the partnership. If he shows you the books and you understand what he is doing, terminate the partnership and get away from him as fast as possible.

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Answered on 6/10/15, 12:13 pm
Edward Wiest Edward R. Wiest, PC

It's impossible to give a firm answer to a question like this without knowing how the business is organized (oral partnership, partnership pursuant to written agreement, LP/LLC/LLP) and review of the governing documents (if any). If funds are being diverted or assets moved to different names, counsel may have to get involved quickly to freeze what's left. Without review of the papers in place, it's hard to give more specific advice.

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Answered on 6/10/15, 12:29 pm


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