LawRato

Partnership firm not sharing profits details what can we do?


09-Apr-2023 (In Corporate Law)

Hello, i have joined a firm in partnership last year in july which is registered in US as LLC and operated from India for US customers. Also company is registered in Delhi as LLC. We had given partnership amount in seven figure through cheque in favour of company bank account in Delhi. And the partnership deed only shows amount in five figure to save tax as per them. Now they are cheating on us by not sharing the profit inspite of reminding them again and again. Please suggest what can we do now as we are feeling cheated as we have lost our entire savings and not getting profit as well.

Answers (4)

Answer #1
670 votes
It is registered firm or not, if it is registered firm every partner has right to ask for account and other related matter like your. For this you have to file suit as per valuation of the amounts as you are claiming.
Helpful? LawRato15+ LawRato
Advocate Rajesh Kumar

Adv. Rajesh Kumar

LawRato Delhi | 25+ Answers
Chat with Advocate Rajesh Kumar Chat 
Answer #2
553 votes
If the company is registered in India as an llc then it is a good idea to file a suit for rendition of accounts. Please move as expeditiously as possible lest you end up falling foul of limitation law. As reiterated earlier you have an excellent case on merits.
Helpful? LawRato16+ LawRato
Advocate Raghav Awasthi

Adv. Raghav Awasthi

LawRatoDelhi | 5+ Answers
Chat with Advocate Raghav Awasthi Chat 
Answer #3
634 votes
Hello! This is indeed a troublesome issue. I have some questions before I can advise you on the future course- You are a partner in the US LLC and therefore I understand that you contributed the 7 figure sum in the US LLC. Am I correct? I would like to understand if you signed the partnership deed which showed 5 digit figure? I (or any lawyer who will assist you in this matter) will require the LLP/LLC agreement, e-mails that you have exchanged with the U.S people so far and the bank money transfer receipts. Are they not sharing profits equivalent to your 5 digit share? What is your role in the Delhi LLP (we have LLP model in India and not LLC)? What work have you done so far for the Delhi LLP and the US LLC? How exactly are the Delhi and the US LLC connected? I (or any lawyer who will assist you in this matter) will require the LLP/LLC agreement, e-mails that you have exchanged with the U.S people so far and the bank money transfer receipts. You must have them before you meet a lawyer.
Helpful? LawRato20+ LawRato
Advocate Mansi Airi Gambhir

Adv. Mansi Airi Gambhir

LawRatoDelhi | 5+ Answers
Chat with Advocate Mansi Airi Gambhir Chat 
Answer #4
917 votes
As a partner in the firm, you are entitled to access and to inspect the the books of accounts. If the firm refuses, you can as per the terms of the partnership deed, file a suit for dissolution and rendition of accounts of the partnership. The acts are the firm are in violation of Section 34 and 35 of Limited Liability Partnership Act, 2008. Apply for investigation into affairs of partnership film under Section 44 of the Act for not making financial disclosures under S. 34 and 35 of the Act. The Government will appoint an Inspector to investigate the affairs of the firm and then the partners will be under a duty to produce their financial statements and if they are indulging in any fraudulent activity or irregularity pertaining to not sharing profit, that will be out in the open.
Helpful? LawRato14+ LawRato

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

Report abuse?

Connect with top Corporate lawyers for your specific legal issue
Connect with a Lawyer
Comments by Users

No Comments! Be the first one to comment.

"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

All Answers

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

LawRato