A partnership dispute can be a serious threat to a business and its bottom line. Get expert legal advice quickly, and you’ll be able to minimise the impact and protect your business interests.

Business partners can fall out for all kinds of reasons, including:

disagreeing about the business’ direction and development
conflict of interest where one owner has an interest in another business
disagreeing over how the business is run day-to-day
disagreeing over the pay structure
poor personal relationships between the owners.

Usually things can be resolved amicably. But if that’s not possible, we’ll talk you through your legal position so you’re clear where you stand. And if you are considering making a claim against a business partner, we’ll explain the implications for you and the business.

Gepp Solicitors has a wealth of experience in dealing with Partnership Disputes, representing clients from various industries. Our team combines legal expertise with a practical approach to resolve any Partnership issues issues efficiently. We prioritise early intervention and amicable settlements but are prepared to take assertive action when necessary.

For more information or advice

Contact Justin Emerson on:
Call: 01245 228101 or
email: emersonj@gepp.co.uk

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Call: 01245 493939 or email: mail@gepp.co.uk or request a call back.

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Area of Expertise

Breach of partnership agreement
Dissolution and winding up
Management and control disputes
Partner exit or expulsion
Profit and loss distribution disputes

Partnership Disputes FAQs

What should we do if a partner consistently fails to meet their obligations under the partnership agreement?

If a partner consistently fails to meet their obligations, the first step is to address the issue directly with the partner involved. Open communication is key to understanding their perspective and finding a resolution. If the issue persists, review the partnership agreement for any clauses that outline procedures for handling breaches or lack of performance. This might include steps like mediation or even expulsion if the agreement provides for it. Consulting with a legal professional can also help interpret the agreement and advise on the best course of action.

What are the steps to take if we suspect a partner of competing with the partnership?

If a partner is suspected of competing with the partnership, it is essential to address the situation quickly to protect the partnership’s interests. Collect any evidence that suggests the partner is engaging in competitive activities. This may include reviewing emails, client communications, and financial records. Review the Partnership Agreement for any non-compete clauses or restrictions on partners engaging in competitive businesses. These clauses will be critical in determining the appropriate course of action. Depending on the severity of the competition and the terms of the partnership agreement, possible actions may include requiring the partner to cease the competitive activities, compensating the partnership for any losses, or even pursuing expulsion or legal action if necessary.

What are the options if we want to dissolve the partnership due to irreconcilable differences?

If partners decide that dissolution is the best option due to irreconcilable differences, the partners should check the Partnership Agreement for any specific provisions regarding dissolution, including notice periods, distribution of assets, and handling of liabilities. They should try to create a detailed plan for winding down the business, including settling debts, notifying clients and creditors, and distributing remaining assets. It may be necessary to consult with legal and financial professionals to ensure compliance with all legal requirements and fair distribution of assets. If possible, partners should aim for a mutual agreement on the terms of dissolution to avoid protracted disputes and potential litigation. Mediation can be helpful if there are disagreements over the terms of dissolution.

How can we resolve disputes when partners disagree on business strategy?

Disagreements over business strategy can be challenging but can often be resolved. Open discussions are essential so all the partners can express their views on the business strategy in a constructive manner. Those discussions should be based on facts rather than opinions as this can help guide decisions and reduce emotions in strategic discussions. Explore whether there is a middle ground that accommodates the key concerns of all partners. Sometimes a hybrid approach to strategy can satisfy everyone’s objectives.

Bringing in an external consultant or advisor can provide an objective perspective on the business strategy and help mediate between conflicting views.

How can we avoid partnership disputes in the future?

The best way of preventing partnership disputes is to have a comprehensive partnership agreement that clearly defines roles, responsibilities, profit-sharing, dispute resolution mechanisms, and exit strategies. In addition regular communication is key. Hold regular meetings to discuss business operations, address concerns, and ensure alignment among partners. Regularly review and update the partnership agreement and business practices to adapt to changes in the business and market environment.

Partnership disputes

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Area of Expertise

Partnership Disputes Experience

Your Partnership Disputes Team

Justin Emerson

Nadia Stillwell

Natasha Kelt

Nikki King

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