Can I Force A Partner Out Of My Business?

There are a couple of ways to try to force a partner out of a business. If the exit of a partner is not detailed in the partnership agreement, it must be decided if the agreement with the other partner is that they will sell their shares or sell their interests in the partnership. If there are any violations of the partnership agreement and if they are serious enough, the party who is the non-violating party can file a lawsuit claiming that those things justify selling the other partner’s interests and kicking them out.

What Should I Do If My Partner Wants To Buy My 50% Interest In The Business?

If you are offered money for your share of your business, you’ve got to decide whether that is something you want to do. If it is something that you are willing to explore, it would be helpful to find out a full picture of the financial situation of the business itself. One of the things that can help with that is to get an evaluation conducted by a qualified expert, who can come in and give both parties a better idea of what the business would be worth.

If there was an agreement on the terms and the price for the partnership, then get those things documented and have counsel assist, whether it’s in a negotiation or just documenting the sale of the partnership. As for any liability that might exist, the selling partner should clearly understand if they can be held responsible for any potential liabilities that the business might have in the future, after they are gone. Are there any non-compete restrictions or any other kind of restrictions? Are they still listed as obligors on contracts or on leases? There are still items to address in addition to just the actual financial sale of the business, which should be addressed with counsel to make sure all those issues are covered before a final agreement is signed by the parties.

Can I Sell My Business If I Own Majority Even If My Partner Does Not Want To Sell It?

If there is a provision in the partnership agreement that allows for the transfer and sale of an individual’s interest, the sale is governed by that agreement. If it’s not in the agreement, then it becomes challenging because you are dealing with whatever state statute would govern the type of entity involved. Under what circumstances does the state statute allow for a sale, and what process governs that kind of sale. Additionally, the partners or shareholders can come to an agreement which is then properly documented.

For more information on Forcing A Partner Out Of Business, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (281) 277-3066 today.