Business partnerships may run into difficulties, and relationships that once worked harmoniously can sometimes sour. In some cases, the relationship may have degenerated to the point where you may need to remove a business partner. This process is not always easy, and you should have legal help.
When you started your business, you should have drafted and signed documents that dictate how the company is to be governed. These should have set out the process to use to remove an owner. Specifically, a properly drafted business agreement would include the following:
Your hope is that your partnership agreement has a buyout clause, or a buy/sell provision, that can be used in the event of a dispute that cannot be resolved. Otherwise, there is a chance that the partnership may need to be dissolved entirely. Your case would end up in court, where state law could impose a remedy on your business that could be beyond your control.
The best way to remove a business partner is through mutual agreement. This keeps you from having to litigate and allows you to focus more on your business. If you find that your relationship with a partner is badly deteriorating, you should at least keep the lines of communication open and never let things get so bad that they reach a point where you cannot talk. You may be able to negotiate a solution to the problem.
The legal team of Naples & Spence, Attorneys at Law, can help you handle sensitive and contentious matters that could threaten your business. Contact us today to discuss your matter and learn more about commonsense legal solutions.
