Leaving a Practice
When a partner leaves a partnership or LLP, it’s vital to consider all aspects of their departure to avoid any undesirable and potentially costly consequences.
Whether the reason for leaving is voluntary or compulsory, we can help you establish a watertight agreement that addresses all eventualities and advise you on your specific concerns.
We have experience of helping both firms and departing partners, and aim to get a practical solution that works for both sides.
Draft a Partnership Agreement
A legally robust partnership or LLP agreement specifies the course of action to be taken when a partner leaves the partnership or LLP. It will cover issues such as notice periods, the repayment of capital and should contain enforceable restrictive covenants.
The partnership or LLP agreement will also specify under what circumstances a partner may be required to retire (such as for professional misconduct, criminal behaviour or gross misconduct) and the thorny issue of expulsions arising from the wish of the majority of other partners, a so-called “red socks” clause.
Prepare for any Partner Departure
Matters are made far more complex when a partnership agreement does not exist. Here, we can use our expertise in partnership and LLP law to negotiate a fair and rewarding settlement on your behalf.
If you’re involved in a partnership and require expert legal advice to draft a partnership agreement or negotiate an exit strategy, our skilled legal team has years of experience acting for partners being removed from a partnership, partners wishing to leave a partnership and partners wishing to end a partnership.
Senior Partner & Head of Dispute Resolution & Insolvency
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