Business partnerships are complex entities with many moving parts. If those parts don’t function in tandem, the consequences can be severe. A dispute between partners can affect everything from the bottom line to a company’s reputation and its relationship with other businesses. It’s important that a Partnership dispute lawyer is brought in at the first sign of trouble to help prevent things from getting out of hand and to explore avenues for resolution outside of litigation.
How do you resolve a dispute in a partnership deed?
One of the most common reasons for a partnership dispute is a claim of breach of fiduciary duty. A general partner or limited partner has a fiduciary responsibility to act in accordance with the interests of the business, which includes responsible management of partnership funds. A violation of this fiduciary duty is considered a breach of contract and may lead to legal action.
Some partners are not good at keeping their personal assets separate from those of the business and can use company credit cards or equipment for their own purposes without accounting for it. This can drain the company of money and interfere with its ability to fulfill obligations to investors. It can also cause problems with tax matters and may result in a need to bring in a partnership dispute lawyer.
Other causes of a partnership dispute include disagreements over the terms of a buyout or the process of forcing out a partner. These issues can be very emotional and require careful negotiation to reach a fair resolution for all parties involved.