Partnership Dispute (LLP)
I started a a new business with two friends a few years ago. Initially it was all well till we were building the business. At the time of incorporation, the two cleverly avoided me taking up a Designated Partner position in the LLP (reason stated that there can't be more than 2 such positions in the LLP at the time of registration). As a result, I was not given the access to the LLP bank account. I managed to get my status converted to a Designated Partner a little later with a lot of difficulty. However, I soon realized that the two had ganged up against me with an intention of swindling the LLP revenues to their personal accounts. They started transferring money to their respective personal bank accounts & using the account for various other day to day expenses, without my knowledge.
On subsequent discussions, when i asked for financial transparency & an access to LLP bank account, they blocked my access to all business emails/activities and stopped responding to all my requests. Till date I have not been paid a single rupee as Director remuneration, neither any share of profits. Over and above, the two tried to force me into resigning & exiting from the LLP, without any compensation for the work I did for setting it up during initial days. Also, I am not sure if tax fillings etc are being done in time for the LLP as all my accesses have been blocked and a new LLP has recently been formed by the two, to re-divert business revenues to the newly registered entity.
Q1: How do I safeguard myself from any tax liability/ penalty arising out of lack of compliance by these two
Q2: In what manner the laws can help in this matter. Is it even worth pursuing?
Asked 2 years ago in Business Law