Case Study
1. Lowe, Ball and Lynch were partners in a New York law firm.
Lowe, who was in failing health, advised the partners that she wanted to retire and that she had assigned her full interest in the partnership to her son Jessie Stringham. Stringham was a New York bar-licensed attorney with numerous years of professional experience. Ball and Lynch did not permit Stringham to attend management meetings or inspect the books. Stringham believes, as the assignee of his mother's partnership interest, he was entitled to do both. Is Stringham correct?
Explain your answer using legal references such as cases, statutes and other materials.
Case Study
2. Ralphael and Mitch have general commitments from several people to invest in their exotic animal park. Mitch wants to form a limited partnership, but realizes that every limited partnership must have at least one general partner who manages the business and is subject to unlimited liability for the business and its debts.
Mitch thinks this is no problem because the general partner can be a "shell" corporation with Mitch and Ralphael at its helm. Ralphael thinks an LLC might be the best approach because the investors are relatives that have opinions on the business, and some are professionals who could offer valuable expertise.
Compare the advantages and disadvantages of a limited partnership with an LLC and determine which is the most appropriate form of business for this venture.