Small business partnership issue. One of the partner used company's money and playing hide and seek when asked for details.

I do not practice in Georgia and you should visit with Georgia counsel. However, every state has laws governing partnerships. In practically every instance, partners are entitled to inspect books and records. A failure to provide access is not only a violation of statutory law in most cases, it is also a breach of the fiduciary obligations which partners owe one another. It does not matter whether your interest is a minority interest. You have rights, unless, somehow you gave those rights away in the partnership agreement.

I think Y & Z should visit with Georgia counsel and make an enforceable demand (citing to Georgia statutory law) for the books and records so that you might determine what has become of your investment. If X does not respond to that demand, you may have to seek a writ compelling him to produce the records. Good Luck

I would have to read the partnership agreement. However, based on the information you provided, a lawsuit against the majority owner appears to be the appropriate action. You and Z should file as joint plaintiffs against X.

I am licensed in Georgia and practice business litigation. If you need additional information, please contact me.

Mr. Moilanen is correct. Much will depend on the terms of the partnership agreement and possibly Georgia law where the agreement does not address the issue. A written demand from an attorney and then possibly a lawsuit is probably the best route.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.