Legal Question in Business Law in Texas
Texas partnership LLC question:
2 women formed a 50/50 partnership, TX LLC in 2009, for a staffing business (�Company A�). The husband of one of the women had his own staffing business prior, serving a separate market. He retained his company�s infrastructure, conducting a few transactions under its name (�Company B�), but devoted the majority of his time to working with Company A as a non-owner, commission-only Recruiter. Part of the infrastructure of his old Company B included a subscription to a recruiting database product. He had customized and built a database for his company using the subscription product (�Recruiting Software�), and had a contract with the Recruiting Software company under his Company B name, which had no end date. He allowed Company A to use the subscription, and build onto his database. He continued to pay for the subscription monthly with personal funds, and was reimbursed up until recently for 1/3 of the monthly cost, from Company A�s checking account.
All along, he had been the sole Administrator of the database, maintaining it, customizing and improving it. He now feels that one of the partners is abusing the data, and she wants full administrative rights and ownership of the data. Does she have legal right to the data and its administration, or does he have the right to maintain it, and include or exclude the Company A partner(s) as he chooses?
1 Answer from Attorneys
As a Franchise Attorney I can say this. It's not possible to answer your question(s) without first examining all pertinent documents relating to the LLC and any agreements relating to the members of the LLC or affiliates. 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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