Q: I am a 5% owner of a limited partnership (I file a Schedule K-1 every year) and am looking to cash out on my shares.
An estranged family member is the majority owner of the partnership and I do not have direct contact to him, only through his attorney. I would like to know my options of how to receive payout of my shares and what I am legally entitled to. The investment is incorporated in Delaware.
A: the answer to this is heavily dependent on the Limited Partnership document. Most family LPs have restrictions on sale/transfer of shares, and also some mechanism to value the shares (often at a discount) when a Limited Partner wants to cash out. This are usually set forth in detail in the LP Agreement. You want to review that with an attorney before contacting any other partners since indicating an interest in selling may be enough to trigger the provisions in the Agreement
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
