Desire to dissolve partnership

Discussion in 'Legal' started by GrahamB41, Sep 11, 2017.

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  1. GrahamB41

    GrahamB41 UKBF Contributor Free Member

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    Hi, i'd appreciate some advice.
    I founded a company and a few weeks after everything was set up (suppliers, branding, website etc) i asked my friend if he wanted to join. He paid half what i put in and we split everything thus far but, i am the one driving the business forward and as i feel the relationship has broken down, i no longer want him part of the business. No contracts in place and we are non VAT registered.
    We aren't making a profit as yet either.
    I know i need firm legal advice but before i go down that route, can anyone share their similar experiences? As its not an LLP, does this make the process much harder?
     
    Posted: Sep 11, 2017 By: GrahamB41 Member since: Sep 11, 2017
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  2. Scalloway

    Scalloway UKBF Legend Free Member

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    Is it an ordinary partnership, ie not a limited company?
     
    Posted: Sep 11, 2017 By: Scalloway Member since: Jun 6, 2010
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  3. GrahamB41

    GrahamB41 UKBF Contributor Free Member

    35 1
    Yes that is correct.
     
    Posted: Sep 11, 2017 By: GrahamB41 Member since: Sep 11, 2017
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  4. Scalloway

    Scalloway UKBF Legend Free Member

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    If it is an ordinary partnership then you just have to say it is dissolved. Work out what your shares of the money in the business are and refund him his half.
     
    Posted: Sep 11, 2017 By: Scalloway Member since: Jun 6, 2010
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  5. GrahamB41

    GrahamB41 UKBF Contributor Free Member

    35 1
    Oh right ok, i see. The plan is that i continue with the business, may i ask, if they were to challenge and say they wanted the business, where do i stand? I don't think he would, but I'm covering all corners.
     
    Posted: Sep 11, 2017 By: GrahamB41 Member since: Sep 11, 2017
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  6. The Resolver

    The Resolver UKBF Big Shot Full Member

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    Once you serve notice of dissolution of the partnership then assets have to be sold, including the business, and a dissolution account sold. You strictly need his consent to continuing to run the company by buying the business off the partnership. Of course you could just d it without consent if he is unlikely to object and you are prepared pay into the partnership account a fair price for the business so he comes out with something.
     
    Posted: Sep 11, 2017 By: The Resolver Member since: Mar 31, 2006
    #6
  7. GrahamB41

    GrahamB41 UKBF Contributor Free Member

    35 1
    What if i slightly change the business name, change domain, apply for a new trade mark etc could i then continue as a new business without his consent?
     
    Posted: Sep 11, 2017 By: GrahamB41 Member since: Sep 11, 2017
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  8. The Resolver

    The Resolver UKBF Big Shot Full Member

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    Then its a different business and ye you can do that,. But if you want to use any assets of the partnership ,including intellectual property assets , eg the website and files, then strictly you need this to be part of a dissolution agreement.
     
    Posted: Sep 12, 2017 By: The Resolver Member since: Mar 31, 2006
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