Can LLC general partner legally withhold financial information?

I am a partner of an LLC which owns a 63-unit apartment building. The general partner has been ignoring my requests for the buildings financial information for the past year. Our operating agreement states that as a partner I'm entitle to company reports. Is withholding the information illegal?


Administrative Law Questions

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Partnership Questions

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Real Estate Questions

in California Posted 2 years, 4 months ago

2 Responses

Profile Picture of Shannon McDonald
Shannon McDonald

Attorney at Offices of Shannon K. McDonald

Yes, it is a violation of the operating agreement and of business law. You are a member of the LLC and as such have a right to demand records. You should make a formal demand in writing specifying how long he has to respond to the demand and exactly what records you are seeking and why. Then, if that is ignored, consult a business law attorney in California who can help you file with the court to compel your partner to release the records.

Please take the time to thank me if you found this answer helpful. I am not licensed in California so this is only broad information, i cannot give you any specific legal advice.

Best of luck,

Shannon K. McDonald
www.mcdonalddefense.com

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Profile Picture of Frank Natoli
Frank Natoli

Founding Partner & CEO at Natoli-Lapin, LLC

Hi,

Ms. McDonald is correct here. You can demand an accounting.

We help entrepreneurs with these matters across the country and internationally. If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient. I will not be notified if you respond through this format so I would advise emailing me directly if you care to respond.

Kind regards,
Frank
www.LanternLegal.com
866-871-8655
frank@lanternlegal.com

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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