We regularly advise on disputes between partners and members of limited liability partnerships.
Partnership disputes often arise out of misaligned management philosophies, especially those regarding growth strategy, culture and branding. Sometimes Partnership disputes arise after a partner retires or is expelled from the partnership or when the partnership is to be wound up. Such disputes require a high level of sensitivity, with reputations and careers usually at stake.
What can cause Partnership Disputes?
Partnership disputes can arise due to various reasons including:
Underperformance of a Partner
Every partner is assigned to a specific role while forming a partnership. If a partner is unable to carry out his/her duties well, then it can cause partnership disputes among partners.
All the profits incurred in the partnership must be clearly declared before all the partners. Any secret profit taken by any partner without the knowledge of other partners may raise partnership disputes.
It is imperative that all partners within a partnership have common interests in businesses. If two partners have a different vision and the rest of the partners do not agree to the same, partnership disputes may arise.
In this situation, the most sensible course of action may be to dissolve the partnership altogether. In some cases, you may need to involve the Courts to ensure that all loose ends are tied up so that the company’s assets are divided fairly.
How we can help?
We provide tactical and commercial advice, from practical steps before a dispute gets out of control to robust advice on mediation and settlement. Where court proceedings become necessary, our experienced litigation team will provide comprehensive advice and guide you through the process. Contact us on 01206500181.