Legal Question in Business Law in Colorado

I am partners with 2 other people, we each own 33.3% of the company. The company owns 3 positions in 3 different network marketing companies. Recently, we have not been getting along. I was coming to the conclusion that we should dissolve the company or divide it up and go our seperate ways. I asked the other 2 people for a meeting (without telling them that this is what I wanted to talk about). Within minutes of getting my request for a meeting, they changed the passwords on all of our joint accounts - the 3 network marketing accounts, PayPal, our bank account, website hosting, domain names and everything related to the company. Is this legal? What is it called when someone does this?


Asked on 11/30/10, 11:19 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say it's not possible to answer your question without further info. When you are partners and each own 33.3% of the company, what does that mean? Are you one-third shareholders in a corporation; one-third partners in a partnership that perhaps owns a corporation, or what? Without knowing the specifics of how you set things up it's not possible to even begin to offer guidance. It sounds like you should consult with a good business or franchise attorney in your area for specific advice asap as specific documents need to be reviewed and action taken asap.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/05/10, 11:27 am


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