Legal Question in Business Law in California
I have a 50-50 partnership in a bar but the other owner is nothing but a liability on the business by drinking on site not charging customers an deceiving the books. Is there any legal recourse to vacate him based on his actions?
2 Answers from Attorneys
The short answer is "Yes", but it is not simple. You will need to consult with an attorney to formulate a plan on how to proceed. The partnership agreement and all the facts will need to be reviewed.
Mr. Dorfman is exactly right. If there is a written partnership agreement it has to be reviewed to see if there are provisions for dissolving and winding up the partnership. If so they must be followed and if necessary a lawsuit filed to enforce and control the process. If no agreement exists or it is silent on dissolution and winding up, then you have to follow the Corporations Code rules, which almost invariably involves a lawsuit for dissolution.
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