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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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I was in partnership (without formal agreement) with one other

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I was in partnership (without formal agreement) with one other individual. The other individual gave notice to immediately dissolve the partnership on 26 March and he also declared all stock, which is jointly owned, as "frozen", pending a stock take on 12th April. Subsequently he has been selling off stock and pocketing the cash in the interim period. The stock is held on his property and I am no longer allowed access. What can I do to stop him selling and to get my fair share?
Submitted: 1 year ago.
Category: Law
Expert:  tdlawyer replied 1 year ago.
Hi thanks for your question. My name is ***** ***** I can assist with this.
Expert:  tdlawyer replied 1 year ago.
One partner cannot simply pocket the cash to property and expect to walk away with it. You have a couple of options really. If there is money that will be owned to both of you later, when the closing accounts of the partnership are settled, you can deduct from his entitlement the value of the property which he has wrongfully taken. This is recognised by s.29 of the Partnership Act 1890 (http://www.legislation.gov.uk/ukpga/Vict/53-54/39/section/29)Alternatively, you could seek the assistance of the court and prevent him from selling anything without your consent. This would be the more expensive option.
Expert:  tdlawyer replied 1 year ago.
You would only usually go down the court route if you believed significant assets were at risk or you had no other way of controlling what he is doing, such that you are likely to be left out of pocket. Of course, you could always sue him at a later stage for the monies he keeps, without taking immediate action to obtain a n injunction from the court to prevent him selling partnership property and then dissipating (if he is doing that) the proceeds of the sale. The costs of an injunction application of the time I mention could be something around £15k plus VAT or so. It's not usually the first route aggrieved partners would take unless the figures/circumstances justified it.
Expert:  tdlawyer replied 1 year ago.
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Customer: replied 1 year ago.
Thank you for your prompt response, and yes, that is most helpful, especially regarding costs of injunction which would far outweigh any gains. I think it makes most sense to sue at a later stage for whatever he keeps from me. I don't really know how this website works, are you able to act for me and write him a letter, or is it simply a case of questions answered here, in which case I need to seek help locally from a solicitor?