Legal Question in Business Law in New Jersey

A horrible business partner

My business partner and I bought a store about 1 year ago. It was evidence from the first day of business that my she had a major mental problem. This person has blocked every measure to improve the business, shouts horrible things in the store about me, not true things, lies, cheats, hides sales, and is untrustworthy at best. Spends money we dont have because she says it makes her feel good. I, for 10 months, would try to fix the problems she created and once I fixed that one she would create another. With the holidays her problem increased to an intolable level and one day she told me she was going to hit me. I had to get away from her so I left the store and she said she would buy my half. It is a corperation. That was months ago and still nothing. She is destroying the business with her spending and every question I ask about rent, bills, daily receipts, I am told it's none of my business. I need the numbers to file reports to the state. I have the right to see the books and know what is happening on a daily basis. How do I get her to give me the information I need? There is no talking to her, she never makes any sense. Oh, by the way, sadly she is my sister but it is time to take action. Help.


Asked on 6/07/05, 7:42 pm

2 Answers from Attorneys
Michael Carroll Michael D. Carroll, L.L.C.

Re: A horrible business partner

You may have to close down the business or seek to get an accounting from her. Mediation might be another possibility. You may want to consult with an attorney.

Read more
Answered on 6/10/05, 12:13 pm
Walter LeVine Walter D. LeVine, Esq.

Re: A horrible business partner

You need to consult an attorney promptly. You should sue for an accounting, production of the books and records, copies of all corporate documents, etc. How did you file the first year's tax return? You prepared it? Get a copy if it was done by an accountant. You may also seek to either have the corporation liquidated or force one side to buy out the other. If you can prove she has acted improperly, and taken funds, etc., you can ask the court to have her surcharged to return what she took. If there are employees, be sure all wages and tax withholdings were actually paid or deposited, as you are at risk if they have not been done.

Read more
Answered on 6/11/05, 9:56 am


Related Questions & Answers

More Business Law questions and answers in New Jersey