Getting rid of a partner n a partnership

[Stuart garrett]

Hello,

I was wondering whether anybody could provide me with any help with a situation.

I have a company with two partners as a partnership. My business partner wants out of the business but I don't want the business to be dissolved. He is willing to walk away from the business because of health issues and wants no money in return. He is at retirement age and just wants to retire without the stress of the business. Without dissolving the partnership can I bring in a new partner and write my current partner out of the business with his authority?? I would then still have two business partners and could carry on trading as a partnership...

I would appreciate any help of ideas of resolving this matter as he is very keen to retire soon.

I look forward to any help.

Stuart

 

[Scalloway]

Why do you need another partner?

 

[Stuart garrett]

I was going to get my wife to become a partner. I did not want to dissolve the partnership and it's my understanding that this is what I would need to do if my current partner left the partnership. Is this correct or not??

 

[The Byre]

Is this a general partnership with no founding articles?

If so, found a new partnership that is heir to the old partnership and put it all in writing!

 

[Scalloway]

It is my recollection that any change in partners means that the partnership has been dissolved and a new one has been created.

 

[Stuart garrett]

The partnership in place has no written partnership agreement in place would this make any difference?

 

[Scalloway]

From Section 32 of the Partnership Act 1890 which is applied if no written agreement exists

http://www.legislation.gov.uk/ukpga...ssolution-of-partnership-and-its-consequences

32 Dissolution by expiration or notice.

Subject to any agreement between the partners, a partnership is dissolved—

(a)If entered into for a fixed term, by the expiration of that term:

(b)If entered into for a single adventure or undertaking, by the termination of that adventure or undertaking:

(c)If entered into for an undefined time, by any partner giving notice to the other or others of his intention to dissolve the partnership.

In the last-mentioned case the partnership is dissolved as from the date mentioned in the notice as the date of dissolution, or, if no date is so mentioned, as from the date of the communication of the notice.

So either partner can dissolve the partnership by giving notice.

 

[Stuart garrett]

Thank you so much for the advice.

Many thanks