It isn't uncommon for businesses to be run by multiple partners. If you run a business with a partner who you feel is not satisfactorily executing their duties, you may feel as if you and the business may be better off without them. While you may think you can simply buy the other partner out, it isn't always that simple. In the event that your existing business agreement does not contain terms regarding a change of partnership in advance, here are three ways you can move forward to dissolve it:
1. Negotiate Directly with the Partner.
When you are unhappy with one partner's performance, the best route may indeed be to simply sit down with your partner and talk about what's going on. Explain to your partner about what they are doing wrong and how their actions are making you feel and/or how it is impacting business. Then, assuming the conversation goes well, you can both work with one another to determine a way to positively improve the situation. If this conversation doesn't go as well as you initially planned, you can move on in the process of dissolution of the partnership.
2. Consider Hiring a Professional Mediator.
If you have sat down with your partner and the communication between the two of you simply is not working, you may want to consider hiring a professional mediator. This allows a neutral third-party to come into the picture and help break down negotiations between bickering partners. It can help the partners put their personalities to the side. In many cases, this process can help increase the chances of reaching a new agreement. However, when this doesn't work or the partner isn't agreeable to such discussions, you may have another option.
3. Take Legal Action by Filing a Lawsuit.
If your partner does not understand that your desire to reach a new agreement or refuses to effectively cooperate with you or a mediator, then you may need to consider taking legal action. If your partnership agreement does not contain any level of exit strategy, then there may be a very costly dispute in your future. For that reason, before deciding to file a lawsuit, you will want to speak to an attorney about the best possible way to move forward that will not only benefit you, but that will also benefit your business as a whole.
Regardless of what aforementioned step you take, a lawyer can help examine your current partnership agreement and clarify what rights and commitments that you have. An attorney specializing in business law can help handle the entire partnership dissolution.Share
21 December 2015
While I took a few business classes in college, I left early to start my own business. I thought I had the knowledge I needed to become a great business owner and was eager to start my business. Soon, I had a new business that was actually performing pretty well in sales. Unfortunately, I hadn't taken any law courses in college, and I soon realized I made a few mistakes when starting my business that could cause me some legal trouble. Thankfully, a great business lawyer helped me correct my mistakes before I had any legal problems, but I then decided to take those business law courses. I want to help business owners and anyone else who would like to learn more about the law by starting a blog where I will share what I have learned and will continue to learn. I hope I can help you!