My question involves business law in the state of: Michigan
Hi. A year ago my mother-in-law passed away unexpectedly without a will. She had a lot of personal debt and no real assets. She was the sole proprietor of an fairly successful internet business. (To be more specific, it was a phone sex service. She owned multiple websites related to it that were used to bring in calls/business.) She has no debts related to this business except for some unpaid taxes. Since her passing, my brother-in-law's girlfriend (whom I'll call "Anne,") has been running the business, as she had worked for my mother-in-law prior to her passing and has some knowledge of how the business works. Basically she has been "running it into the ground" and is now threatening my father-in-law, telling him to sign the business over to her so she can "properly run it" or she's quitting and starting up her own similar business. She has offered him 20% of the profits to sign it over to her. My father-in-law has no ability to run the business but relies on it for money to support himself. "Anne" has access to the business' merchant account in order to pay the employees and she gives my father-in-law money but barely enough to live off of. Meanwhile, she uses it for her personal needs (taking her family out to dinner, etc.) She also has transfered the websites and 1-800 numbers into her name,which she feels justified in doing since she claims she has done some of the site designs, which she was paid to do.
At this point, my husband and I want to take over the business, at my father-in-law's request, so we can stop "Anne" from ruining it and stealing from it. We're not sure what the legalities are for transfering it and/or how we can persuade her to give us all the passwords, info, etc, related to the business.
Any info would be appriciated. Sorry for the length of the post!