Legal Question in Business Law in Illinois
i am in a limited partnership and would like to be bought out of my shares. is there a formula for computing the worth of my shares or at least the return of my investment?
3 Answers from Attorneys
You need to look at the originiating documents. Often, a formula or method is set forth there.
Review your partnership agreement to see what the provisions are regarding buy/sell of your partnership interest.
Thank you for your question. The value of your partnership interests is generally governed by the partnership/operating agreement. If it is a typical agreement, there will be some formula that will determine what is known in the tax world as a current account. This is basically a calculation of money in versus money out. This is all assuming, however, a perfect world. You may encounter difficulty with the other partners, the partnership may not be able to afford it, etc, etc. Please feel free to contact me for further (free) discussion; [email protected]
Thanks -
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