Are you planning to separate from your business partner? If so, it’s crucial for you to understand your rights before you begin the process.
The exact nature of your rights will depend on the structure of your business. However, they will typically include:
The Right to Access Essential Company Information
As a general rule, any individual who owns a share of a Florida company has the right to access basic business information, such as:
- Incorporation documents
- Share transfer records
- Meeting minutes, and
- Operating agreements
They can also ask for and review financial records, including:
- Bank statements
- Recent tax returns
- Balance sheets, and
- Profit and loss statements
Partners typically do not need to show any relevance or materiality to obtain this information. All they need to do is submit a request.
The Right to Share in Economic Benefits
It is, unfortunately, not at all uncommon for Florida business owners to refuse to share economic benefits with their partners once a dissolution has been initiated.
Such a refusal is almost always unlawful.
In the state of Florida, shareholders are usually entitled to share in dividends, profit distributions, and other economic benefits, even in the midst of a messy business divorce. Individuals who do not receive the money they are rightfully owed can take legal action against their business partner. This legal action generally comes in the form of a lawsuit.
The Right to a Structured Divorce Process
Business owners often try to force their partners to rush through the divorce process. However, their partners do not have any obligation to comply with such a demand. They have the right to a structured divorce process.
If the business has an operating agreement or another governing document that spells out the steps the owners should follow to go their separate ways, the partner has a right to insist this procedure is followed to the letter.
If no such document exists, the business partner can instead insist that the divorce is carried out in accordance with the provisions outlined in Florida law.
Protect Your Rights with The Frazer Firm
The knowledgeable business litigation lawyers at The Frazer Firm have been helping Floridians navigate the complex business divorce process for many years. If you need help standing up for your rights as you separate from your partner, please do not hesitate to give us a call or contact us online. We are always ready to assist!
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