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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I am in a business partnership with 4 others. It is an

Customer Question

I am in a business partnership with 4 others. It is an expense sharing agreement but one of the partners has not contributed financuellr for several years. We have asked him repeatedly but excuses and delays are ongoing. He has assets and certainly can pay towards the costs. We feel it is unfair for the rest of us to bank roll him indefinitely. Is there any way we can force his hand. We are also trying sell the business ( 3 of us at 20% share each), he does not want to sell , and he is also making the sale difficult by delaying paperwork and instructions from ourselves
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.To be clear, is this a partnership rather than Ltd company? Is anything in writing, if so what does it say about disputes or termination etcAlex
Customer: replied 1 year ago.
No it's not a ltd company. There are no specific clauses in partnership agreement. That is the problem.
Expert:  Ash replied 1 year ago.
Ah ok. Does it say anything about dissolution?
Customer: replied 1 year ago.
I don't have a copy in front of me. I will get a hold of it and get back to you. Tx
Expert:  Ash replied 1 year ago.
Sure.
Customer: replied 1 year ago.
Ok. We have no partnership agreement in place the time we bought the business. I have just checked. The purchase agreement was signed by us 5 but no partnership agreement. I feel this has left us very vulnerable and very little options
Expert:  Ash replied 1 year ago.
Ok - well you have 2 choices at this stage:1) Sue the partner who isnt paying for the expenses incurred2) Dissolve the business and split the assets up (less his expenses which have not been paid)Option 1: You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.If the claim is for £10,000 or less it will be a small claim so you will not need legal representation. Over this value you would need representation for trial.Option 2:You send a notice of dissolution to all partners. This does not have to be agreed by all, one or all partners can agree to dissolve.The partnership is then liquidated and the assets sold, less expenses and debts owed by this partner. If you wish to sell the business in effect it is being dissolved as someone else (or a company) is buying it.Therefore there is a price to be paid, the partnership is dissolved and the defaulting partner can have his share deducted of the expenses not paid.Can I clarify anything for you about this today please?Alex
Expert:  Ash replied 1 year ago.
If this answers your question could I invite you rate my answer 3, 4 or 5 starts before you leave today.I am only paid for my work on this question if you rate my answer, using the star system at the top of the screen. Please do not forget! Thank you.Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/

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