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Securing Your Assets: Tactics for Handling Partner Theft in Your Business

by | Apr 1, 2024

Can you trust your business partner?

In the complex world of business partnerships, trust forms the cornerstone of success. However, when that trust is shattered by a partner’s dishonest actions, it’s crucial to take decisive steps to protect your business. At Pitcoff Law Group, we understand the challenges you face and are here to guide you through the process of safeguarding your interests.

Step 1: Review Your Agreement: Check your company’s operating agreement for provisions addressing partner malfeasance. Look for options like terminating ownership, buy-outs, or limiting decision-making authority.

Step 2: Know Your Statutory Protections: Even without an operating agreement, statutory protections apply. Laws like the New York Limited Liability Company and Business Partnership laws offer safeguards. Use your right to inspect company books and records.

Step 3: Send a Demand Letter: Clearly outline your rights in a demand letter, setting an expiration date for compliance. Demand actions like book reviews, accounting, buyouts, or deadlock resolution. This signals potential litigation if resolutions aren’t met.

Step 4: Consider Legal Action: If necessary, file a lawsuit to ensure accountability. Seek injunctions to halt damaging activities, secure assets, or pursue claims for fiduciary duty breaches and unjust enrichment. Judicial dissolution might be necessary in extreme cases.

At Pitcoff Law Group, we specialize in navigating the complexities of business law. Our experienced team is here to provide expert guidance and support every step of the way. Don’t let the actions of a dishonest partner jeopardize your business’s future. Contact us today for personalized assistance and protect what matters most. We would be happy to assist you.