Question

What Should I Do If The Managing Partner Of A California Business Is Dishonest?

Sponsored Answer
Mark B. Wilson - Business Litigation - Super Lawyers

Answered by: Mark B. Wilson

Located in Newport Beach, CAKlein & Wilson

Newport Beach, CA
Phone: 949-478-0521
Fax: 949-631-3703

View Profile
Answer

Most partnerships work harmoniously but, on occasion, honest partners can be victimized by a dishonest managing partner. This problem is not limited to partnerships. A dishonest “manager” can take advantage of others in closely held corporations, limited liability partnerships and limited liability companies. When a person is in control of a company either through company documents that appoint the person as a “manager” or because that person has a majority equity interest, the law still provides remedies to keep a dishonest “control person” in check. Sometimes the corporate documents, operating agreements or partnership agreements place limits on the powers of a control person. When those documents are silent, the law generally imposes a fiduciary duty on a control person.

When a person owes others a fiduciary duty, that means the fiduciary must act with the utmost good faith for the benefit of the other person. In other words, the fiduciary must put others first, and when he or she fails to do so, the law can impose harsh consequences.

If you find yourself in a dispute with a dishonest partner, you need the advice of counsel who understands how to address breach of fiduciary claims in a business setting. Klein & Wilson has significant experience handling partnership, corporation and other business entity disputes. If you have fiduciary duty questions, call Klein & Wilson at 949-478-0521 and ask for Michael LeBoff.

 

Disclaimer: The answer is intended to be for informational purposes only. It should not be relied on as legal advice, nor construed as a form of attorney-client relationship.

Other Answers By Mark B. Wilson

Photo of Mark B. Wilson

I Think My California Lawyer Committed Malpractice. What Can I Do About It?

Most attorneys care about their clients and diligently pursue their matters. Unfortunately, even careful attorneys sometimes make mistakes that have …

Sponsored answer by Mark B. Wilson

Photo of Mark B. Wilson

What Should I Do If My Neighbor Sets Up A Sober Living Home In My California Neighborhood?

Sober living homes have become a troublesome epidemic in much of the United States, especially in California. While some of these homes are well-run …

Sponsored answer by Mark B. Wilson

Photo of Mark B. Wilson

What Should I Do If Another Company Infringes On My Trademark In California?

Trademarks can be a valuable company asset. Unscrupulous competitors may recognize the goodwill associated with a trademark and attempt to copy it or …

Sponsored answer by Mark B. Wilson

Other Answers About Securities Law

Photo of Nicholas Berg

Can I sue my stock broker in Louisiana?

If you feel your stockbroker has mismanaged your account or wronged you in some way, you may be left wondering what your options are. Fortunately, …

Sponsored answer by Nicholas Berg

Photo of Nicholas Berg

What can I do if I think my broker defrauded me in Georgia?

When you invest through a stockbroker, you expect them to put your best interests first. In fact, the law in most states (including Georgia) provides …

Sponsored answer by Nicholas Berg

Call Me
949-478-0521

To: Mark B. Wilson

Super Lawyers: Potential Client Inquiry

Disclaimer »
Privacy Policy »
*Required fields
Page Generated: 1.2953321933746 sec