Chester 01244 405555

Grosvenor Court
Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester

Shrewsbury 01743 443 043

Lakeside House
Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Airport City, Manchester 0844 800 8346

Office 129
Manchester Business Park
3000 Aviator Way
Manchester M22 5TG

Send us a message
Our Offices

Professional Partnership Problems – Leaving a Partnership

1st October, 2014

When you start up a new business, whether it’s with a family member, your spouse, a friend or colleague, the one thing that’s certain is that at some point someone will want to leave, or will be in a position where they have to leave (death, illness, dispute, change of personal circumstances all affect partnership businesses).

Exiting a partnership is often compared to divorce. However with expert help it should not be that painful!

Common Dilemmas

Every partnership is different but we can see common themes including:

• Family disputes adversely affecting the business;
• The ending of a marriage or relationship leading to problems regarding the running the business;
• Loss of trust between the partners for some reason (money, lack of equal effort, changes in their personal lives);
• The evolution of the business changing the skills and personnel required to succeed. Start up skills, for example, are distinct from long term operational skills;
• Financial disputes – money is at the root of many of the problems we help resolve;
• “Partners” in companies – a partner is a specific legal term and does not apply in a company but we talk every day to those who think they are partners but are not. Do not panic – we guide companies, shareholders and directors on implementing exits as well.

All of these common issues can be resolved in a variety of ways. We usually advise our clients to consider:

• Negotiated retirement of an individual partner from the partnership (retirement being the legal term for leaving the business rather than becoming a pensioner);
• Force retirement (if the Partnership Agreement permits this);
• Mediation – an agreed outcome and departure terms reached by negation using the help of a independent third party;
• Arbitration – a decision imposed by an independent person charged with settling the dispute privately under the rules of arbitration;
• Litigation – using the Courts to achieve legal redress.

At Aaron & Partners LLP we have a niche team of solicitors advising solicitors, doctors, dentists, accountants and general partnerships (typically, transport, trading or farming businesses). Our specialist website can be found here: www.aaronspartnershiplaw.co.uk

You might also be interested in...

Aaron & Partners picks up new five year contract with Dwr Cymru Welsh Water

27th January, 2020

The legal firm has been selected by the water utilities giant to provide property law expertise as well... Read More »

Female driver harassed before and during employment awarded £74,000

23rd January, 2020

In the recent case of Kim Beaney v Highways England and others, Miss Beaney (the “Claimant”) was awarded... Read More »

Protecting art and culture in Cheshire – the Acceptance in Lieu Scheme

22nd January, 2020

The Acceptance in Lieu Scheme aims to allow tax efficient gifts of works of art to the nation.... Read More »

Contact Us
Secured By miniOrange