We can assist you in understanding your legal rights and obligations and in resolving any business-related disputes.
A dispute between the partners of a business can have far-reaching consequences for the business. Disputes can arise about who owns the partnership business assets, what happens if a partner wants to leave the business and what happens if a partner dies. Our solicitors can help you to find a commercially beneficial solution, quickly and cost effectively.
To speak to a dispute resolution solicitor about a dispute with a business partner, contact our Leeds, Sheffield or York office by calling 0333 323 5292 or by filling in our enquiry form and letting us know a suitable time to get back to you.
Types of Partnership Disputes
We are able to help you with the following:
- Dissolution and termination of partnerships
- Drafting a partnership agreement
- Division of partnership assets and property
- Winding up and insolvency
- Advice on tax
Our team has years of experience in advising on the construction of partnership agreements and the rights partners have when there is no written agreement. Equally important, we are able to deal with the complex issues that often arise when one or more partners seeks, or forces another partner, to leave the business. In such circumstances, the rights and obligations of both the departing and continuing partners may be central to the continued viability of the business.
We regularly deal with issues that arise in the context of traditional partnerships, as well as matters that involve limited liability partnerships (LLPs) and their members. We recognise the personal dynamics that are often a feature of such disputes and the need to find solutions that take these into account.
Do I Need a Partnership Agreement?
The best form of defence in a partnership dispute is a strong, written agreement that clearly addresses the following:
- Profit split based on time, effort and capital each partner has invested
- What happens when one partner dies, retires or leaves the business
- Whether or not a partner can be forced out of a business for unacceptable behaviour
A partnership agreement also lays out how disputes should be handled and how certain decisions should be made, ensuring you are not just automatically subject to the default rules of the Partnership Act 1890. The Act states that:
- there should be an equal split of the profits if partners go their separate ways (undesirable if the partner has more capital invested than other partners);
- the business should dissolve if any partner dies, retires or leaves the business;
- there is no power to force anyone out of the business if they are imprisoned or declared bankrupt.
The Partnership Act 1980 states that any partner liable for the business’s profits is also responsible for any losses. This extends to your personal assets unless you are in a limited liability partnership (LLP) or it is otherwise stated in an agreement.
Contact Us for Help
We provide advice on a wide range of legal issues to clients around Yorkshire and beyond from our offices in Leeds, York and Sheffield. For an initial discussion about your case, contact one of our specialist solicitors today using the details below.