Partnership firm not sharing profits details what can we do?

751 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.

Advocate Rajesh Kumar LawRato

791 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.

Advocate Raghav Awasthi LawRato

619 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.

Advocate Mansi Airi Gambhir LawRato

680 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.

LawRato LawRato