H&R Block subsidiary RSM McGladrey has terminated its service agreement with McGladrey & Pullen, two months after M&P also moved to terminate the agreement.
In an SEC
Under the administrative services agreement, RSM provided accounting, payroll, marketing and other administrative services to M&P in return for a management fee. The two entities also had a cost-sharing arrangement under which M&P would reimburse RSM for certain costs, mainly for the use of RSM-owned or leased real estate, property and equipment.
Either party had the ability to terminate the agreement after giving 210 days' notice. According to Blocks SEC filing, Following such a termination, M&P generally is prohibited for a period of three years from engaging in businesses in which RSM engages or soliciting RSM clients.
Disentangling the two firms has been difficult since M&P filed to terminate the agreement on July 21, however. Many of the staff and accountants had worked for both M&P and RSM, and the two parties have been engaged in both mediation and arbitration. In the SEC filing, Block noted, The notice by RSM is intended to make certain that mutual consent is required for any reconciliation between M&P and RSM.
In a