As a Delaware County Business Attorney, I am often asked what someone should do if their business partner is not providing them with financial information about their company. The first thing you need to do is determine what kind of company you have. Your corporate documents will control the issue initially. Inside the documents will be the rights of each partner to certain financial information. As a owner, you are entitled to know the information that’s there.
There are statutory provisions with corporations with finances and transactions. The obligation to provide that information to you is voluntarily. If they refuse to give that to you, you have the right to request it in writing and they have the obligation to respond under a statutory obligation. If they fail to do so, you can go to court and request an order that requires them to issue the information.
There is a partnership provision in the Uniform Partnership Law of Pennsylvania that says that the individual partner has the obligation to report to his co-partner with financial information. You have a right to your company’s financial information. This is the obligation of each partner to the other one.
When you have a limited liability corporation, there is no law that obligates your partner to provide you with financial information. However, each member must account for their individual profits. If you are still not getting that information, you can file a request saying they are violating the obligation set forth in the operating agreement.
Is Your Business Partner not giving you any financial information about your company? Contact Delaware County Business Attorney Walter Timby to work for you.
This educational blog was brought to you by experienced Business Lawyer Walter J. Timby. Our law firm proudly represents business law clients throughout Delaware County, as well as Pennsylvania, the greater Philadelphia area, Delaware and New Jersey.
