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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3498
Experience:  Solicitors 2 years plus PQE
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Can someone please explain To me in plain English what

Customer Question

Hi.
Can someone please explain To me in plain English what the voting rights are of ex partners (partnership ) who still work for the company but resigned their share but still haven't received their full agreed settlement .They have received 2/3 rds of money owing.
Can they interfere with the decisions to the majority vote of existing partners or are they even allowed to attend partners meetings..
Please help.
Peter Elliott
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Is this a partnership or a limited company?
Kind regards
AJ
Customer: replied 1 year ago.

Hi AJ

You've helped me before.

It's a partnership

Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
Did you sign a deed of resignation?
Are you being paid in installments?
Kind regards
AJ
Customer: replied 1 year ago.

They signed a resignation letter that's all

But they are getting paid in quarterly instalments

To be honest it's only one ex partner and one remains partner (best friends ) that are causing grief.

Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
My apologies for the further questions but can you confirm whether you are the only partner left in the partnership?
No the ex partners are still working for the partnership are they paid a salary (less PAYE and National Insurance)?
Kind regards
AJ
Customer: replied 1 year ago.

No problem AJ.

They are self employed

Customer: replied 1 year ago.

No problem AJ.

They are self employed ..

There are 3 partners and 4 ex partners 3 ex partners still working on a self employed basis

Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
I am just typing a response now.
Kind regards
AJ
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you for your patience.
When a partner resigns from a partnership they should be paid out their capital (if any) and any income they are owed.
However once they have resigned that is it - they can no longer bind the partnership or participate in its management. In absence of a partnership agreement the law of partnerships is contained in the Partnership Act 1890.
The only circumstance they could continue to be involved is if their resignation was conditional upon being paid out. I presume this was not the case?
Kind regards
AJ
Customer: replied 1 year ago.

Thanks AJ.

They think because they are still owed money they have a financial interest in the company therefore still have a say..its a joke but they have a partner backing them up..!!

Expert:  Alex J. replied 1 year ago.
Thank you.
Did you agree to pay out their capital in instalments? Do you have a contract detailing the instalments?
Kind regards
AJ
Customer: replied 1 year ago.

It was in their resignation letter but yes , quarterly payments until December 2016

Customer: replied 1 year ago.

Hi AJ.

Any update?

Customer: replied 1 year ago.

Hi AJ.

I am having a meeting tomorrow with the ex partners have you got anything for me?

Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
My apologies for the delay.
As long as the resignation letter did not say the resignation was conditional on being paid the installments then the resignation will be effective as of the date detailed in the letter. The letter does not need to be a deed.
I would just say that they cannot attend meetings or participate in the voting when they are not a partner. Practically it is dangerous because you will be allowing someone who is not a partner to potentially bind you as a partner to liabilities and contracts.
Kind regards
AJ

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