Legal Question in Business Law in Michigan

Re: Business Partners & Fraud

A partnership ceases to exist as a partnership upon one or more of the partners leaving the partnership. Once the partnership ceases, the partners must dispose of the assets. If they cannot agree on how to dispose of the assets, or if they are not bound by a written agreement for dissolving the partnership, then any partner may seek relief in court to protect his/her interest in the partnership assets and to have the court decide the rights of the parties.

The assets of the partnership (or of a corporation or limited liability company) could range from tangible (i.e., desks, fixtures, machinery, etc.) to intangible (i.e., contracts, accounts receivable, business opportunities, good will, etc.). Unless authorized to do so by agreement or by a court order, no partner may take the assets to the exclusion of another partner. The assets of the partnership remain partnership assets, even if the partnership ceases to conduct business, until disposal of the assets in accordance with Michigan law. A court may issue an injunction (that is, a court order) which restrains the partners from disposing of or taking the assets without authority from the court. This will preserve the respective rights of all of the partners, until the court can hold a trial to determine what should be done with the partnership assets.

You should contact an attorney in your area who is familiar with partnership law, to discuss the specific facts of your matter. The attorney can consider all of the factors which affect your rights.

This response does not constitute legal advice and is not intended to be legal advice. No attorney/client relationship is created as a result of this response.

Re: Business Partners & Fraud

Hire an attorney to file an injunction amd then request the court through the attorney for an accounting of the partnership. Until the motion is heard the assets cannot be disposed of nor the partnership dissolved.