Legal Question in Business Law in Indiana

I am dissolving a partnership with my brother. We own two companies. The partnership agreement was written for the main business that purchased the other. We are 50% owners in both companies. As part of the agreement it stated "in case of a dissolution of the company, the value of the company will be based on the machine(s) and other capital equipment only. The value on the customer base will not be a factor." There is still retained earnings that still should be considered. Is that correct? Should I ask for my retained earnings prior to dissolution? Do I have the legal rights to my retained earning that I have been paying taxes on?


Asked on 12/29/10, 1:26 pm

2 Answers from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say this. It's not possible to even begin to answer your question without a complete examination of the entire partnership agreement as well as all surrounding facts and circumstances. Obviously retained earnings is an important issue and appears not to have been dealt with, based on the limited information you provide. Which is even more reason to consult with a good business or franchise attorney in your area for specific advice.

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

Franchise Foundations, a Professional Corporation

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Answered on 1/03/11, 4:16 pm

Even though I am not a franchise attorney, I do agree with Mr. Murphy that there are more factors than you have provided and therefore you should consult with a local attorney. Good luck.

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Answered on 1/04/11, 3:58 am


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