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legal advice on LLP

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justiceseeker
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legal advice on LLP

Postby justiceseeker » Sat, 27 Aug 2011 11:58 pm

Hi. Would like to seek legal advice on LLP. A few months ago, we bought some shares from A, one of the 4 partners of a Tuition center (registered as a LLP). After paying the 5 digit amount to the center, we were endorsed at ACRA as the 5th partners. But after that, we repeatedly asked for knowing & meeting with all the other partners, discussing the center's business, requesting for partners' Agreement, financial report, the center's business condition / situation / update, etc. But we got no reply. Half a year passed, we don't even know the other 3 partners, let alone attending partners' meeting, information on the center's business status etc. I also could never get through the line of the only partner who I met once and paid the investment to.

After such a bad experience, I decided to quit. What to do to get back my investment and to protect my right as one of the partners?

Looking forward to earliest reply.

Thank you.

beppi
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Postby beppi » Sun, 28 Aug 2011 6:33 pm

It looks like you didn't do your due diligence before handing over the cash!
Since there are no general rules (laws) governing the relationship of partners in an LLP, such things are usually stipulated in the partnership contract. If you don't have such a contract, you are probably out of luck here.
In most cases things like paying out cash to a resigning partner need a majority decision of all partners. How high are the chances that the others agree to pay you anything?

justiceseeker
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legal advice on LLP

Postby justiceseeker » Mon, 29 Aug 2011 9:15 am

beppi wrote:It looks like you didn't do your due diligence before handing over the cash!
Since there are no general rules (laws) governing the relationship of partners in an LLP, such things are usually stipulated in the partnership contract. If you don't have such a contract, you are probably out of luck here.
In most cases things like paying out cash to a resigning partner need a majority decision of all partners. How high are the chances that the others agree to pay you anything?


Hi. Beppi. Thanks for your reply. You are right. I trusted the guy too much. All the other partners are his relatives or friends. Up to now I don't even have a chance to know them although I repeatedly asked for the meeting with them. Now I heard they are going to sell the Center. Am I legally able to stop it or do I have the legal right to request for detail of the sale? If I was not informed of the sale (by black-and-white), can I take any legal action on them?

beppi
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Postby beppi » Mon, 29 Aug 2011 4:16 pm

My understanding (as a non-expert on law) is that all decisions are made by a majority vote of the partners.
I guess it's time you see a lawyer about this!


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