Questions & Answers
Suing a partner for mismanagement of funds and causing losses
I'm a partner in a company.
My partner who is also a manager ruined the company. There's a big load of debts in the market which also crossed the capital.
Is there any way, according to the law, by which I can sue him for mismanagement of funds and get my investment back?
If the capital is gone and further losses are more than the capital, what are my legal rights in this situation?
As per your query, the 49% share of both the parties was decided into half or in any other ratio? Was there a separate side agreement regarding the percentage of share?
As per the facts stated by you, there is misrepresentation, fraud, and mismanagement created by the other partner.
If all his actions prove to be a gross error for the company and also to other partners, then it is legitimate to file a case against him and claim the negligence and criminal fraud (if any) done by this person in the capacity of the partner/manager.
And also, he was a manager of the company and his actions caused losses to the company and to other partners, which eventually, as per company law, gives you the right to sue him and claim back the loss.
You have the right to file both civil and criminal cases.
However, we have to see relevant evidence to come to that certain conclusion.
Please contact us via phone or email for further assistance.
