Business Disputes

Partnership Disputes

Where conflict does occur, in the absence of an express agreement as to how the partnership is regulated, the provisions of an old and dusty piece of legislation will apply: the Partnership Act 1890.  In our experience, this may not offer the most effective way to resolve 21st century conflicts.

It is not uncommon for partners to have injected different working or actual capital at the outset. Without a partnership agreement, this can cause significant issues and difficulties. The 1890 Act provides that where there is no contrary agreement, all capital and working profits and losses are to be shared equally amongst the partners.

Some of the more common partnership disputes we deal with are as follows:

Secret Profits: partners are not permitted to make profits from their business without the express knowledge and consent of their fellow partners. Where one partner does this, it may be sufficient reason to justify expelling that partner from the partnership and to seek an order from the court directing that such profit be paid over to the partnership.

Management/Personality Conflicts: for many reasons sometimes it is just not possible to continue working with other partners. It may be possible to expel a partner by following a contractually agreed procedure, or to dissolve the partnership. It may necessary to seek the assistance of the court in order to dissolve and wind up the partnership.

Post-dissolution Issues: following a falling out, one partner may, without the consent of the others, continue with the business. This can lead to all manner of problems, and may make it necessary to make an application to the court to compel the winding up and sale of the partnership assets. Issues then arise as to the extent of the entitlement of the former partners to the proceeds of sale.

We are experts in helping both professional and other individuals with all kinds of partnership issues. We regularly advise on issues relating to dissolution, breach of fiduciary duties, partners’ rights and obligations, winding up proceedings, and actions for accounts and enquiries across a wide range of industry sectors including accountancy, medicine, dentistry, finance and investment, insolvency and health care.

For further information please call 0345 111 5050 or email us.

Contact us

3 Waterfront Business Park
Brierley Hill
West Midlands, DY5 1LX

Call Us: 0345 111 5050


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