What are your rights as a business partner?

by advisemedisciple. Posted on Sep 15, 2020    1    1


My dad invested in a factory business last year. We are completely new to the industry but the partner is well established and has other factories. I know my basic rights as a partial owner but am not very business savvy to say the least.

I have been working in it but feel like I'm being constantly gas lit about certain issues, and being prevented from knowing important information such as where we buy material from and who we sell to. Another example is when I want to see the operational expenses and accounting records, the partner will say that I need to first learn about other parts of the business first and take it step by step. While I do need to learn, I feel like he is using my inexperience to gaslight me to prevent me from knowing important financial information.

So as a partner what rights to information do I actually have? Would it be ridiculous for me to ask for updated financial records on a monthly basis?

The partner is currently trying to pull in another investor; this would mean a change in percentage of ownership. But the partner hasn't told me exactly how we are going to cooperate with the new partner, only that ownership will change from (me)35/65 to (me)20/40/40. Surely he should give me a new ROI, tell me how much the new investor is investing, and give a detailed document stating how exactly we are going to cooperate?

Thanks in advance business savvy people


Comments

zaskar 2

You need to take your contract to a lawyer, beyond that advice nothing said here will matter.

I suggest finding a local angel investment group and asking them who they recommend for law firms.