..more about partnership problems....

shaz · Mar 2, 2006

Hi - I posted here last week about a contribution inbalance in my business partnership and got some very good advice.

Taking the general advice, I toned down my discussion with her, and merely put the point that an inequality can exist between us, but that in that case, the respective rewards should reflect that inequality.

We have at last now agreed to bring resolution ideas back to a meeting next week.

My question to the forum is:

How would a 60:40 split in an llp partnership work out & what issues should I consider before putting that forward? Also - if she rejects it wholesale, and we agree to dissolve the partnership, could I carry on with the business legally?

Many thanks for all suggestions...

gordonthegofor · Mar 2, 2006

I dont think you would be dissolve the partnership but buying her out

welshnoonoo · Mar 2, 2006

I think you would have to get an accountant to work out how much the shares are worth and then go from there.

shaz · Mar 2, 2006

Hi - thank you for your suggestions -I've been trawling the llp legislation - but it seems a bit unhelpful unless one of us is bankrupt! :roll:

Plastics Dave · Mar 2, 2006

I will give you my solution. I had the same problem and was becoming more and more wound up to the extent that a good business was suffering.
I changed the partnership to a Ltd company of which of course we are all employees and I am now paid as the managing director and he is paid the general manager, surprising how much oil a couple of quid extra in your wages can pour on troubled waters.
regards
dave

gordonthegofor · Mar 2, 2006

Dave I presume you both retained equal shares and the difference in value was paid in wages

Plastics Dave · Mar 2, 2006

Hello Gordon et al.
I will keep this going because it is an answer to the thread
We are 50 / 50 shareholders in the business so any divvies are split that way, the difference is in the wage structure of the employees, us and the 15 others. The fact that the 2 owners work for the business is irrelevent.
For this to work of course there has to be an acceptance by the owners of individual employee values, this we have insofar as it has always been accepted that I run the business and he has no desire to take on that pressure and responsibility. When I had to decide how much we should be paid I called in our accountant as a moderator and worked it from there based on market rates for the job I do and what the company can reasonably afford of course.
This also helps with the issues surrounding his desire to retire before I am able to.
Regards
Dave

Cornish Steve · Mar 2, 2006

I know it won't help the situation now, but I was advised on day one not to set up a 50:50 partnership. Someone must always be in charge. We agreed to a 55:45 split, and this has worked well.

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..more about partnership problems....

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