Partner not disclosing the economic expenses of the the company.

875 votes

Every director has fiduciary duties to disclose the income and expense of the company. You can raise the question in the board meeting and ask for the details.
Regards,
Sadanand, gandhinagar, Bangalore

Advocate Sadanand Naik LawRato

746 votes

Question: Hi me and my friend have opened a company, but now the problem is after taking the money from me he is not ready to give any details on the money spent on the company and where has he spent it. So what should i do. How can I legally ask him and if he is not responding then what should I do?.

Ans: Your answer depends on what kind of company, whether private limited or partnership firm, etc.,
In general you have every right to seek for details of the expenses/profit/ etc., you can issue notice calling for details if you are not in talking term. filing to do so you can proceed according to the reply that you receive.

Advocate Girish Kodgi LawRato

789 votes

Hi, assuming that only you two are the SHs of the Company, first you need to look at the Shareholders Agreement and the Articles of the Company.Shareholders can enter into any arrangement in the best interests of the Company, but the only thing is that the provisions of SHA should not go contrary to the articles of the Company. Breach of SHA which does not breach the Articles of a company is a valid corporate action, but the parties agreed can get remedies under the general law of the land for breach of any agreement and not under Companies Act. These things can only be determined when you get you consult an expert lawyer with your agreements, we have considerable expertise in handling corporate litigation. Should you need any legal feel feel free to contact.

Advocate Ayantika Mondal LawRato