Ditching a business partner...

[SuPaSpArK]

Chaps,
What are the legal formamities of ditching a business parter who is no longer involved within the day to day running of a business...infact no input within the last 9 months.
Anybody been in similar situation.
Supes.

[singlecoil]

Is there a partnership agreement? If so, what does it say about this situation?

If not, then I think you need to tell us a bit more about the background to this, and maybe someone can suggest something. Nowhere near enough info yet.

[karona]

There was a discussion on something similar a month or so back:

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

It really depends whether you are still communicating with the absentee partner

[SuPaSpArK]

No partnership agreement, business has been making a small loss due to present climate, I have injected cash to stay afloat. I have had comms with absent partner, I know partner is liable to stump up 50% of input cash but if they refuse where do I stand.

Edited by SuPaSpArK on Saturday 27th February 20:53

[singlecoil]

SuPaSpArK said:

No partnership agreement, business has been making a small loss due to present climate, I have injected cash to stay afloat. I have had comms with absent partner, I know partner is liable to stump up 50% of input cash but if they refuse where do I stand.

Edited by SuPaSpArK on Saturday 27th February 20:53

If there is no partnership agreement, it could maybe be said that there is no partnership, depends on the circumstances, which remain unknown to us.

You are still being very economical with the information, and until you provide some more I don't know that you are going to get anything useful out of this.

Is it the business (hairdressing) shown in your profile? Did you both pay equal amounts to set it up? WHose name is it in? etc etc etc

[SuPaSpArK]

singlecoil said:

SuPaSpArK said:

No partnership agreement, business has been making a small loss due to present climate, I have injected cash to stay afloat. I have had comms with absent partner, I know partner is liable to stump up 50% of input cash but if they refuse where do I stand.

Edited by SuPaSpArK on Saturday 27th February 20:53

If there is no partnership agreement, it could maybe be said that there is no partnership, depends on the circumstances, which remain unknown to us.

You are still being very economical with the information, and until you provide some more I don't know that you are going to get anything useful out of this.

Is it the business (hairdressing) shown in your profile? Did you both pay equal amounts to set it up? WHose name is it in? etc etc etc

It is the salon.
Bills are in my name
50% equal share on setup costs (£3000 each)

[singlecoil]

Have you spoken to the person about it? If not, why not? If you have, what was said, was anything agreed?

How about suggesting you buy them out for their £3000 share on an installment basis? If they really have no interest in being involved in the business, and it isn't making any profit at the moment, that should appeal to them. If they don't agree, do it anyway, get your solictior to write them a letter setting out your offer, then if they don't reply, put their share in a seperate account to give them when they do agree, and carry on as if they are no longer connected with the business.

[SuPaSpArK]

Yeah, I thinking the same way, glad for your input matey...just makes me think I'm on the right track...;)
Supes.

[lozzom]

Good advice to sort it out properly, probably using a solicitor.

There can still be a partnership even though there is no partnership agreement - the relevant legal document is then the 1890 Partnership Act - not the most up to date piece of law and probably not what you want! Any future profits would be allocated 50/50 irrespective of the amount of 'interest' shown in the business by each partner so good advice to sort it now!