Can I Force My Business Partner To Buy Me Out?

Unfortunately, it is not uncommon for business relationships to breakdown. There are often differing opinions on how a business should be run which can often lead to the dissolution of a Partnership. In this article, can I force my business partner to buy me out, we will take a look at the options open to you. The article relates to a business that is not incorporated and is simply a partnership.

Free Initial Telephone Discussion

For a free initial discussion on how we can help you sell your share of a business, get in touch with us today. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help stop matters escalating, saving you money and also avoiding the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.

Initial Considerations

Take stock of your circumstances and carefully consider what may result following the dissolution of your Partnership.

If following consideration you still feel compelled to dissolve the Partnership, it is important that you attempt to keep matters as amicable as possible. An acrimonious dissolution could potentially open the floodgates to litigation, which may prove expensive and time-consuming.

Consulting your Partnership Agreement

The first step in dissolving your partnership would be to consult your Partnership Agreement.

This Agreement would typically detail the factors that may lead to the dissolution of the Partnership and the procedure that needs to be followed to dissolve the Partnership. The Partnership Agreement may also set out a disputes resolution process such as Mediation which could assist the parties in reconciliation, if appropriate under the circumstances.

We appreciate that reviewing your Partnership Agreement may seem daunting however we can assist you in interpreting the legal terminology and taking the necessary steps to begin the process.

What if there isn’t a Partnership Agreement in Place?

If you find that there is no Partnership Agreement in place, the dissolution of the Partnership would be governed by the Partnership Act 1980.

This particular statute sets out the necessary procedure, in place of a Partnership Agreement. For example, it details how assets and liabilities must be dealt with upon dissolution.

We can assist you in interpreting the technicalities of The Partnership Act 1980 and applying the necessary provisions to your particular circumstance.

So, Can I Force My Business Partner To Buy Me Out?

Ultimately this will depend on the terms of the Partnership Agreement.

If there is no Partnership Agreement in place, then your Partnership will be governed by the Partnership Act. Under the terms of the Partnership Act, you cannot in theory force your business partner to buy you out. Rather you can serve notice of dissolution which would have the same effect. Following notice of dissolution assets and liabilities will be dealt with as well as any profits that need to be distributed.

How we can help

We have a proven track record of helping clients when they are dealing with a partnership dispute. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact our Corporate Solicitors

It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of reducing risk, saving you money and ensuring you achieve a positive outcome.

To speak to our Corporate solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Corporate, News Tagged as