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tdlawyer
tdlawyer, Laywer
Category: Employment Law
Satisfied Customers: 1096
Experience:  Lawyer with 9 years experience in employment related issues.
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My business partner a week ago announced he wanted to dissolve

Resolved Question:

My business partner a week ago announced he wanted to dissolve our 6 year old partnership because he says we are 'too top heavy' he also said he does not mind if he go's or I go but he wants it sorted by the end of the month. I am sure he was convinced that I would not be able to raise the money to buy him out but I can. I said fine I will buy him out so he agreed to go. Two day ago he turned up at the office and announced to the staff he has changed his mind and was now staying, and wants to make sweeping changes to the company. I can't now work with him, do I have any legal grounds to get him to leave? There are four partners my wife and me and my business partner and his wife however both wife's have no input with the business. I am afraid we don't have a partnership agreement.
Submitted: 3 years ago.
Category: Employment Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hi thanks for your question. My name isXXXXX can answer this for you.

tdlawyer :

Unfortunately, without a partnership agreement as to who can expel a partner, it is simply not possible to force one partner to leave the partnership.

Customer:

So if we can't now work together do we split the business in two? The company is a letting agency.

tdlawyer :

Neither of you have the right to the business at the expense of the other. If you can't agree, then the only thing to do is close it all down and start again.

tdlawyer :

This is what a court would do if the aggreived partner issued court proceedings.

Customer:

I think closing down the business and starting again would decimate the business, there is a lot of competition locally that would mop up our customers.

tdlawyer :

Yes, this is why it's essential that you try and agree something otherwise you both stand to lose out.

tdlawyer :

You could sell the business, as an option, and split the cash, or try and make sure you both get on with each other. The alternative, closing down the business, isn't good obviously.

Customer:

How do we decide who gets to keep the name and web site, the office and the staff? Is this just about negotiation?

tdlawyer :

Yes, it is, otherwise a court would compel you to cease the business and let the staff go, the office lease/tenacy expire/end etc.

Customer:

Ok, not good news. If we can't agree between us would you recommend engaging a solicitor to mediate?

tdlawyer :

Yes, it's worth getting a solicitor involved because it's sensible for you both to know the effects of what's being proposed immediately and yes, they can then hopefully mediate a resolution for you.

Customer:

Thank you for your advice Tony, I think another sleepless night is in store and a heated meeting Monday morning.

tdlawyer :

Sorry it's not better news!

tdlawyer :

This is why it's always crucial to get a proper partnership agreement drawn up.

tdlawyer :

Is there anything else you would like me to clarify for you?

Customer:

I don't think so, but I may get back to you after the meeting Monday morning. Thank you.

tdlawyer :

Yes, you can come back to me anytime. No problem at all.

tdlawyer and other Employment Law Specialists are ready to help you
Expert:  tdlawyer replied 3 years ago.
Yes, you can come back to me anytime. No problem at all.