Legal Question in Business Law in Maryland

Re: business partner fired

If the business was incorporated he has a statutory right to inspect certain records, and if they can't resolve this, he could file a legal action for an accounting and get access to the business records through the lawsuit.

Re: business partner fired

It depends on the terms of the Shareholder's Agreement if the business is a corporation, or the Limited Liability Company operating agreement if the business is an LLC. There should be either an operating agreement or a shareholders agreement, because SBA usually does not grant women owned or minority owned status without one of these agreements.

In addition, under Maryland Law your father may have the right to petition the court to break up the business. An LLC can be broken up if it fails to operate in accordance with its Artciles of Organization or its Operating Agreement. Closely Held Corporations can be broken up for all kinds of reasons under Maryland Law, including oppression, fraud, etc. A break up would force a sale of the businesses' assets and your father would get paid something.

But break up litigation is very expensive.

You father does have the right to examine the books and records regardless of whether the business is an LLC or a Corporation.

If you want further information on this matter go to www.businessbrawls.com. David Kaufman is an excellent litigator on these matters.