Partnership agreements

marie c · **Partnership agreements** 15-10-2007, 10:35 PM

Hi can anyone give me advice on disolving a partnership agreement. I am in business and my partner has decided to not return from her current maternity leave. It was a 50/50 partnership in investment, although I have always done the lions share of the work. She had now been on maternity for 4 months and decied not to return and thinks it would be best for me to buy her out. I am happy with this, not sure what to do next, not sure if I can raise the funds. It is a retail business with 3 shops. Anyone got any advice, would be much appreciated.

MikeH · **Re: Partnership agreements** 16-10-2007, 10:52 AM

You may have been hoping for a better reply than this but...

You need to get some legal advice on this. The transfer of the business will need to be managed properly. The value of the business is will probably be viewed differently by both of you. Finding common ground may lead to some interesting conversations.

Mike

philegal · **Re: Partnership agreements** 08-12-2007, 07:09 AM

Hi!

I hope you had gotten that legal advise.

In case you haven't, you may want to consider to set up a Ltd Co. Assuming that your partner is agreeable to this, you can pay her partly with shares in the company since money (or cash flow?) is one of your concerns. Or you can probably enter into a loan agreement over portion of her share (that you cannot pay in cash) to secured by a pledge on shares of the company.

But do get that legal advise suggested by Mike H.