Disputes between partners in a company can contribute towards a dysfunctional company senior management team so it is critically important that disputes between partners are resolved quickly and satisfactorily for the future success of the company.
Partnership disputes could represent a dispute between the partners in a partnership, or if the company is an LLP the dispute could be between the members of the LLP. If the company was a limited company the dispute would typically be between the company directors or even shareholders.
There are in fact fewer traditional style “partnerships” that are in operation as these type of business arrangements often do not represent the most effective business structure because the partners are saddled with the risk of unlimited personal liability. For this reason many traditional partnerships have either transferred into a Limited Liability Partnership (LLP) or are considering the transfer because an LLP is a combination of the partnership model along with the limited liability that comes with being a limited company.
Common types of partnerships and LLP’s
There are specific professions that are prevalent amongst partnerships and LLP companies.
What sort of partnership disputes often occur?
As with all businesses there are often differences of opinion amongst the owners/partners. In the case of partnerships this can cripple a business if a resolution is not found.
How can BPS Law help?
When dealing with a partnership dispute we will initially check the Partnership Agreement in place so that we can understand the framework within which the company operates and the partners work. Unfortunately, it is often the case that partnerships do not have a written set of rules with important company matters taken largely on trust between partners.
If there is no Partnership Agreement which would detail individual rights and responsibilities, disputes can become difficult to resolve.
In the first case we would take into account all the facts in the dispute and arrange mediation between the parties. This formal dispute resolution arena can often help to overcome disputes and separate the emotion from the situation.
If mediation does not solve the partnership dispute we will being court proceedings with a view to concluding in a swift and finite manner.
You may be part of a partnership that does not have a written Partnership Agreement, subject to a partnership dispute yourself or thinking of dissolving a partnership. We can help.
For further information and advice about partnership disputes please contact us on 0161 834 2623 to discuss how we can help.