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Roger
Roger, Attorney
Category: Business Law
Satisfied Customers: 31015
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I am an equal owner in an Llc with 2 other business partners

Customer Question

I am an equal owner in an Llc with 2 other business partners in Colorado. We are in a dispute and they are trying to buy me out. They have cut me out of all financials where I am unable to view the bank statements, point of sale system etc. I have been requesting this information for over a year and through my attorney they are refusing to give it to me. I know I can take them to court and get it, but that will be costly. Our business uses a CPA firm that is paid for by our business, what legal duty, if any, do they have to me as an equal business owner to share with me detailed financial information about my business when I request it? Can my other business partners control what information the CPA gives to me?
Submitted: 8 months ago.
Category: Business Law
Expert:  Roger replied 8 months ago.
Hi - my name is ***** ***** I'll be glad to assist.
Unless your corporate bylaws or operating agreement requires a majority vote to access financial documents from your accountant, or unless the bylaws/operating agreement provides only the manager has the right to access this information, then you should have just as much right as they do to this information as a member.
Expert:  Roger replied 8 months ago.
If your request is refused, you can file a lawsuit as a member for an accounting and subpoena the records. Even if you don't go through with the suit, you can still use it in order to have the ability to get the subpoena issued.
Customer: replied 8 months ago.
Yes, I know this. The question is, does the CPA firm have any legal obligation to give me the information when requested. I am legally privy to this information. In other words, can the CPA firm be implicated in refusing me information when I request it?
Expert:  Roger replied 8 months ago.
As a member, you are entitled to the information unless your operating agreement or bylaws provides otherwise.
Expert:  Roger replied 8 months ago.
If the CPA firm is told by 2/3 of the membership not to provide this information to you, then that places the firm in a predicament, and it may refuse based on the direction from the other 2/3.
Expert:  Roger replied 8 months ago.
The CPA firm would likely have a legitimate defense to any claim by you that they improperly withheld the information.....but if you issue a subpoena, they can't refuse that.
Expert:  Roger replied 8 months ago.
The thing you have to look at is the CPA firm works for the company ---- not any one individual ---- so if 2/3 of the organization is telling it not to disclose documents, it's probably going to listen as the CPA firm has no duty to know and understand the bylaws or operating agreement, etc. Instead, it's just doing what it's told.
Expert:  Roger replied 8 months ago.
Please let me know if you have any additional questions. Also, please take time to positively rate our conversation so I may receive credit for assisting. Thanks again!
Expert:  Roger replied 8 months ago.
Please let me know if you have any additional questions. Also, please take time to positively rate our conversation so I may receive credit for assisting. Thanks again!