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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Im in a 50/50 business partnership. My partner wants to leave

Resolved Question:

I'm in a 50/50 business partnership. My partner wants to leave and set up another business for him self. He will be leaving his share in business, with me running it alone. Will I have restrictions with him not been there?.
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.

Alex Watts :

Do you have a partnership agreement at all?

Alex Watts :

I assume its a partnership rather than Ltd Company please?

Customer:

Yes We have a partnership agreement. The company is ltd.

Customer:

He won't resign his directorship, chq book requires both signatures. his wish is to control the business Without him been there. He has threatened to destroy business.

Alex Watts : Do the articles say about what happens if one leaves, or the agreement?
Customer: I don't know
Alex Watts : Can you check?
Customer: There was no contract as such. When we registered the business both our names were listed as also both having 50:50 shares
Customer: He thinks he's above the law. I can not believe that he has the right to start a company in competition with our business. It's not right.
Alex Watts :

He will always be a shareholder, you can not get him out unless it is in your articles of association.

Alex Watts :

You can run it how you want to without restriction.

Alex Watts :

There is nothing the partner can do - he can not re-instate himself as a Director.

Alex Watts :

So yes you can run it how you want to without any interference.

Alex Watts :

Can I clarify anything for you about this today please?

Customer: What about signing cheques, if he is to go then do I need his signature.
Customer: If he is to go, what about signing cheques. At the moment both are required .
Alex Watts : No, you can have him removed. He will not be a Director, just a shareholder.
Alex Watts : Does this help?
Customer:

He has a company debit card - will he have to return it back.

Customer:

He has a company debit card, will he have to return it, also is he entitled to any of the company savings that are in the bank. i feel he would want half of whats there.

Alex Watts : Yes. He can not have any running of the business. He can't have half the savings as it belongs to the company, not him.
Alex Watts : Does that clarify?
Customer:

sorry, regarding debit card, will he have to return it.

Alex Watts : Yes.
Alex Watts : Does that help?
Customer: Thanks Alex, you've been a great help. I feel more relaxed now. If in future I need your advise I know where to look.
Alex Watts : If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.Please remember that I am always happy to help if you have future questions, even if I am in Court I can normally respond within a few hours. For future information, please start them with ‘For Alex W’.Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/
Alex Watts :

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