A partnership dispute can arise when business partners or members of an LLP disagree over operational or financial decisions. Whereas many business vehicles have a clear hierarchy of who has final say over decisions and disputes, the equality of a partnership makes it a more complex area. The far-reaching consequences of partnership disputes mean it is essential for those involved to seek external legal advice on the best way to proceed.
In addition to partnership tax issues, property matters or disagreements over the day-to-day running of the business, one of the most common reasons for a partnership dispute to arise is that partners feel their contributions are not equal. Hughes Jenkins can help you resolve these issues.
If disputes cannot be resolved they may lead to the dissolution of a partnership, which in effect means the end of the business. Alternatively, the expulsion or removal of a partner is sometimes an option if other partners want the business to continue.
In any case, it is essential that a partnership agreement is drawn up to cover the potential consequences of a dispute between partners or members. Without an agreement, you cannot expel a partner or member, adjust the distribution of profits, or continue the partnership if one partner serves notice of dissolution. Any solid partnership agreement will contain specific measures for mediation or arbitration in a dispute.
Hughes Jenkins team of expert partnership dispute solicitors offer advice on disagreements and problems. We also strive to achieve partnership dispute resolution with the best outcome for you and your business, whether by providing mediation between parties, or assisting in the dissolution of a partnership.
Please call 01685 886 611 or contact us online to book a free consultation.