Legal Question in Business Law in Maryland

partnership restrictions and laws

I am co-owner of a retail clothing store. since the store opened last month. my partner believes that she has the majority share in the company because her name is written first on all our documents, but we have legal papers to support that it is a 50/50 partnership. She is hiding papers vital to the business from me and saying that I can do nothing concerning the business, She is writing sole proprietor on forms she sends to suppliers. Every idea I have to help the business grow she disagrees with no matter how good it is. She had my company debit card with my name on it cancelled without my knowledge or consent. It has become so unbearable that we cannot even work the same hours. She has hired someone that spies on me to work as an employee in the store. I have put my foot down and stated that I will not work with this person. She is performing as if she alone has ownership in this company and I need to know what my legal rights are.


Asked on 10/12/00, 4:26 pm

2 Answers from Attorneys
Lawrence Holzman Holzman Law Firm, LLC

Re: partnership restrictions and laws

It is unfortunate that you are having such problems after such a short time in business together. Your intuition is correct, if you own 50% of the business, you have a right to equal say in management issues and a right to see books and records. There are many possible strategies to deal with your facts, including dissolution of the partnership. However, developing a proper strategy is not something that you are going to be able to do without legal counsel. Given your circumstances, you need advice from a good business transactions attorney, and you also need counsel (perhaps a separate person) who is skilled in litigation. Please feel free to give me a call. I'll be happy to chat briefly with you, without charge, to see if the lawyers from our firm can assist, and if not then I will be happy to direct you to other competant counsel.

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Answered on 11/06/00, 5:28 am
Daniel Press Chung & Press, P.C.

Re: partnership restrictions and laws

You are entitled to an equal voice in management, and are entitled to access to books and records. If you cannot agree, the partnership will have to be dissolved. You need to retain counsel immediately and be prepared to file suit to protect your rights.

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Answered on 11/06/00, 12:05 am


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