NRI Partners in the FIRM Giving trouble us to sell our share
2 years ago
My father is being a share holder (10%) and his mother (10%) of the firm (Movie Theatre) since past 25 years with other relatives as partner (HUF), The managing partner and their children are NRI's being major partners (70%). They are unethical and combined with another local partner who is brother (10%) of my father, he is maintaining the firm since past 25 years and always tells there are losses and no good revenue orally, so due to less knowledge on those aspects my father used to believe them and always receives the less share amount as profit so far at present i have observed their fraudulent behavior and auditors also compromised with them not showing any accounts to us then we decided there is no more further business with them. We approached a party from outside and decided to see our share but they are refused to show our accounts, deeds & records for the share value estimation they neither buying our share nor releasing us to sell to outers since they are NRI's they have the local share holder support become rude and harrassing us. Is there any possibility to proceed against to them. Thank you.
The partners have what is called a fiduciary duty to the company. In general, this means they must act with the best interests of the company in mind, above and beyond their own self-interest. If your business partner breaches their fiduciary duty to either you or the company, it may be necessary to sue. Especially if the conduct is ongoing or severely harmful to the business.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
In the interest of the firm, it is always advised to avoid legal proceedings amongst the partners however if things go beyond your control you can file a lawsuit and go through your company documents as in clauses mentioned regarding the extents of liability of any partner etc. and see how these clauses can favour you.
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He may file suit for accounts and get settle the accounts or you may file criminal case against them and thus bring them for compromise. You may approach local advocate for getting more legal advise.
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