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Partnerships, Accountings

Partners owe each other a fiduciary with respect to the affairs of the partnership. Anchor Centre Partners v. Mercantile Bank, 803 S.W.2d 23 (Mo. 1991). As part of this fiduciary duty, each partner has a duty to “render on demand true and full information of all things affecting the partnership to any partner.” King v. Bullard, 257 S.W.3d 175 (Mo. Ct. App. 2008); Section 358.200, RSMo. 

Under Section 358.210.1, RSMo, every partner must account to the partnership for any benefit improperly diverted from the partnership. There are specific circumstances in which an accounting may be had under Section 358.220, RSMo; specifically, any partner has the right to obtain a formal account as to partnership affairs when: (1) he/she is wrongfully excluded from the partnership business or possession of its property by copartners, (2) the right exists under the terms of the partnership agreement (or potentially other agreement), (3) as provided by Section 358.210, RSMo; or (4) whenever other circumstances render it just and reasonable.

Contact with questions about partnerships, fiduciary duties, and business litigation generally.