Business Partner dropping out
Business Partner dropping out
Author
Discussion

x5x3

Original Poster:

2,437 posts

284 months

Thursday 7th April 2016
quotequote all
Once there were three and now we are down to two.

He fully understands that he is dropping out and is therefore not entitled to any share of the business/profit/etc in the future.

It is all very amicable (currently).

However I'd like to get something written down and for him to sign it (with witnesses?) - does anyone have a link to a template for this - I did try Google but obviously did not pick the correct search terms, in fact I'm not even sure there is a proper term for this type of document?

sgrimshaw

7,587 posts

281 months

Thursday 7th April 2016
quotequote all
If there is no provision in the Partnership Agreement as to what happens if a partner dies or leaves (or if there is no Partnership Agreement) then AFAIK the partnership is dissolved.

Presumably though, you could draw something up "now" before #3 leaves.

Edited by sgrimshaw on Thursday 7th April 14:33

trickywoo

14,257 posts

261 months

Thursday 7th April 2016
quotequote all
What was in writting at the start?

This is all you need to worry about.

x5x3

Original Poster:

2,437 posts

284 months

Thursday 7th April 2016
quotequote all
thanks all - there was no partnership agreement or anything in writing at the start, a guess there are a few emails with ideas but nothing that says we all agree with any of them.

Yes I know it is a bit of a mess but it is amicable at the moment so I do hope it is just me being a bit paranoid!

Rangeroverover

1,523 posts

142 months

Friday 8th April 2016
quotequote all
This really is something worth paying a lawyer to do, you may regret not doing it properly when you are even more powerfully built and the ex partner wants a piece of your learjet.

Invest a few hundred£ on proper advice now

warp9

1,632 posts

228 months

Friday 8th April 2016
quotequote all
Rangeroverover said:
This really is something worth paying a lawyer to do, you may regret not doing it properly when you are even more powerfully built and the ex partner wants a piece of your learjet.

Invest a few hundred£ on proper advice now
Completely agree with this. We had a partner leave a few years ago and while it was mostly all amicable, getting it legally ratified protects all parties. Couple of bits of advice - have really open and honest conversations about what all partners want in this process. Don't leave any issues festering or not getting dealt with. Secondly, once you have all agreed what and how the exit will happen, make it happen ASAP. Procrastination breeds contempt. Lastly, get a proper agreement in place with the remaining partner.