LLC Partnership – refusing to grant access to accounts
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
LLC Partnership – refusing to grant access to accounts
This is on behalf of my wife. She is in a 50/50 partnership and her partner has been handling all of the financial side of things for the past few years. Everytime my wife access for access she plays dumb and never grants it. There is a big distrust as we have seen where she has taken money out before. We are looking to dissolve or sell the business but we want to review the books, W2’s and credit card statements to ensure no other wrongdoing has been done that we need to sue for. How can we get access if she is unwilling to provide it? The majority of this is on business credit cards where she is the administration or primary holder and the credit card company will only provide details to her.
Asked on October 8, 2016 under Business Law, Texas
Answers:
B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If there is a written agreement or articles of incorp for the LLC, it will usually include procedures for the 'winding down' of the LLC. Winding down procedures usually involve an audit of the books so that everyone knows the state of everything before any assets are divided or sold. If there is not a written agreement, then you wife still has the right to demand the audit. If the partner refuses to tender the books for an audit, then your wife needs to send her a formal demand letter for the same. If she does not cooperate after a formal demand, then your wife should file a suit to dissolve the LLC and request an audit during that process.
I would recommend at least talking to a business attorney in person. They can review your wife's documents and see if there are any other options available within her contractual agreements.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.