partner wants out

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Latest post 08-05-2007 10:19 AM by adjuster jack. 1 replies.
  • 08-04-2007 5:16 PM

    Question [=?] partner wants out

    Our company is 10 months old and my business partner needs out for personal reasons. We are in debt to personal investors, not a bank and will try to get a bank loan to cover the amount owed to investors.

    My partner feels that with their leaving the business, I will have to buy them out- pay them to leave me with the debt but own the business solely. Somehow that doesn't sit correctly. Someone (not anyone in law) told me that in this situation, if my partner wanted to leave they would have responsibility for the debt the company owes.

    Can you advise on this situation?
  • 08-05-2007 10:19 AM In reply to

    re: partner wants out

    If you didn't have a lawyer assist in the creation of your partnership agreement and that agreement didn't address buyout and/or dissolution, then you certainly need a lawyer now.

    How you buy out and/or dissolve the business, at this point, is subject to negotiation.

    "My partner feels that with their leaving the business, I will have to buy them out- pay them to leave me with the debt but own the business solely. Somehow that doesn't sit correctly."

    You got that right.

    Don't take legal advice from your partner.

    You can certainly make whatever counter offer you like.

    One that comes to my mind: You leave me with the debt you don't get a nickel. (That's not legal advice.)

    "Someone (not anyone in law) told me that in this situation, if my partner wanted to leave they would have responsibility for the debt the company owes."

    Who were you talking to? The village idiot?

    Talk to a lawyer instead.


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