Falling Out With Your Business Partners - Is a Formal Partnership Dispute Inevitable?

Even if a business partnership started out on the best of terms with a positive relationship. Things happen over time which can cause the partnership to end on bad terms. A dispute of this kind can be fairly time consuming and stressful.

If a business partnership dispute gets to the point where the partner simply cannot come to an agreement between themselves - one of the partners has seriously betrayed the other's trust or acted against the partnership's interests - it may be that the best and only option is to end the partnership entirely.

However, the process of ending a partnership because of a business partnership dispute is nowhere near as easy as many people think. Everything is not simply split in half for each partner. The outcome and legal situation is highly dependent on several factors. For example, if one or more partners want to leave the business whilst the others remain, you will need to consider whether or not there is a written partnership agreement is in place, and if so what are the terms - the alternative being that the business relationship is governed by the Partnership Act.

Unfortunately, there is a high correlation between any business partnership dispute and the failure of the business. This is because it is hard to smoothly run a business when there is dispute in the partners, or if the partners are not exactly seeing eye-to-eye, and may even refuse to work together in any capacity, until the issue has been resolved.

Many complications can arise in these sort of disputes. One partner may want to end the relationship and even the business itself, whilst another may want to continue to keep the business open. Third parties may be brought into the equation to try and come to a solution through either mediation or arbitration. If a solution can't be found, the next step is usually trying to reach a resolution through the courts.

Sometimes litigation is the only option if all other avenues have been exhausted. However, if there is a business partnership dispute in which one or both of the partners thinks that the end of the partnership is inevitable then it may prove impossible to rescue the relationship.

Dissolution of the partnership may lead to the sale or closure of the business; make sure that this is done legally and correctly, and try not to be in a hurry to sell, as it's likely that you won't get the best deal possible.

If you and your partner are currently having a business partnership dispute and need legal advice, it is absolutely essential that you receive the best and specialist legal advice available so that you can analyse all of the options available. If your partnership looks like it is going to end, along with the business, be sure to take the appropriate steps and get legal advice as early as possible.

Are you going through a partnership dispute? Get in touch with Bonallack & Bishop on 01722 422300 -Solicitors who specialise in business partnership dispute advice.

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The Problems With Silent Partners - And The Threat of Business Partnership Disputes

Unfortunately entrepreneurial flair is not the only thing required in the start up of a new business! Obviously a capital is also required, this is where many people find themselves turning to relationships with silent partners.

Having a business partner who will invest in your idea and leave you to get on with it may seem like a dream come true, but this is never the case. People with money to invest didn't come by it by accident - they will be a shrewd investor who will expect their investment to make money for them.

To avoid partnership disputes with a silent partner, everyone involved must be clear about where they stand from the outset -and that involves getting the right legal advice and the right legal documentation at an early stage. Responsibilities and duties should be clearly defined, so that any misunderstandings which may occur later and lead to a partnership dispute can be avoided. Both parties will have clear objectives. The silent partner is not just a Father Christmas figure, and will want to see that their investment is managed properly. At the same time, the other partner will need to make sure that they have sufficient funds to start the business on a professional footing and have a surplus to see them through slow trading periods.

It must be understood at the outset that the silent partner will be just that, and the daily running of the business will be left to the partner who has the skills to make the business work and grow.

These points, and many others, should be discussed to avoid partnership disputes. The investor, or silent partner, will need to be assured that his or her capital investment is being managed in a professional manner, and will show a profit. The other partner will also need to make the business grow, so that they can make a living wage and satisfy the silent partner's investment.

All partners should look the big picture: a bad month or a bad week may be just that, and this may have nothing to do with the overall state of the business. If any partnership disputes do arise, all partners should discuss them together. For the right needle advice, talk to a specialist business law solicitor, to resolve any partnership disputes, which may lead to a partnership dissolution and the end of the business -not to mention the end of the dream which everyone involved had at the beginning. Impartial legal advice costs less than proceeding without it.

Are you in need of a Salisbury legal advice on your partnership dispute? Contact Bonallack & Bishop - Salisbury Solicitors specialising in advice on business partnership disputes.

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Business Partnership Disputes Among Three or More Partners

Running a business means examining both incoming and outgoings, and in a partnership, this means that all partners must have a responsibility for their own areas, and be able to handle them efficiently and report back to the company.

Failure to communicate efficiently about all aspects of the business will inevitably lead to business partnership disputes.

When starting a business, it is vital to understand how many areas should be concentrated on within the company and how many partners are needed to oversee each part. Marketing, accounts and other essential roles need to be discussed. Can one person carry out more than one role? If not, extra staff will need to be brought in to cope with these jobs, and this must be taken into consideration. Are all partners really qualified to take on their assigned roles? If the business is to succeed and prosper, all those involved must be competent to carry out their duties. These may seem to be small matters when you are starting a business with a great sense of optimism, but failing to address the responsibilities of partners at the start of your company will inevitably lead to business partnership disputes.

There is little point in having a partnership where roles overlap. This will only mean that two or more people are trying to do a job which one person should be able to carry out alone. So clear understanding of roles should be outlined at the start of the business, or partnership disputes are sure to occur. Ideally, one partner should deal with financial matters, accountancy and bookkeeping, while the other will have the responsibility for more creative aspects of the company. Of course, day-to-day discussions are important for the business, but it must be clear at the beginning which partner has overall responsibility for each aspect of the business, to avoid the prospect of any business partnership disputes. For further clarification, outline the various responsibilities to be held by each partner in a professionally drafted partnership agreement prepared by a specialist commercial solicitor.

Try as you might, businesses are subject to outside influences, and what seemed like a good idea in the beginning may need to be adapted. If one or other of the partners are unable to look at things in a more flexible way, it is certain that partnership disputes will arise. All partners should realise the benefits of discussion and mediation, and keeping in touch with experienced professionals, such as your solicitor, accountant and business banking staff, to prevent any potential business partnership disputes in the future.

Looking for a Solicitor in Salisbury for specialist legal advice on your partner dispute? Contact Bonallack & Bishop - Salisbury Solicitors specialising in business partnership disputes.

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