In this country it is common for many businesses to be operated through either a limited company or a partnership. It is sometimes said that the worst ship to sail in is the “partnership”.
Unfortunately like a marriage relationships which once were terrific at the outset does not mean that you will continue to work in harmony.
A fall out amongst partners, directors or shareholders can have a significant impact on the business and the financial benefits which the individuals involved receive. Many businesses will have a partnership or a shareholder agreement in place to regulate how the business is operated and how a party must act or their entitlement if they seek to leave.
Having such formal agreements will assist in any dispute but their meaning and effect can still cause problems.
If you have no formal documents then the position will be governed by various elements of the law including the Companies Act 2006 and the Partnership Act 1890.
If you are unfortunate enough to experience such a dispute it is important that these are resolved as quickly as possible to ensure that the business suffers minimal disruption or that you receive what is due to you so that you can continue with other ventures.
We are able to offer specialist advice in respect of both the legalities and commercial realities.
Need help or advice?
If you have a dispute and would like advice please call us on 0333 577 5677 or complete our request for a free assessment.