Legal Question in Business Law in United Kingdom

monitary entitlment when dissolving a business partnership

i am currently partner (3 ways equal) in a limited company manufacturing upvc windows and doors. i want to dissolve the partnership, what am i entitled to money wise and how do i go about it. current partners are not awilling to give me any more that they say the business can afford now. it is a growing expanding business.


Asked on 4/21/04, 3:26 am

1 Answer from Attorneys
Richard Howard Richard Howard & CO

Re: monitary entitlment when dissolving a business partnership

You would normally recover your investment through the sale of your shares either to the other shareholders or in certain circumstances through the Company buying them back. If you do not have a specific agreement the Articles of the Company may set out wnat happens.

Ultimately if you cannot reach agreement you may have to bring procedings but this is a costly last resort. Selling shares to partners has various legal and tax issues attached so you need ongoing advice from an accountant and Solicitor to reach the agreement and then implement it.

Assuming you are an employee as well you will have some potential employment claims as well. These can be utilised to reduce the tax burden.

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Answered on 4/21/04, 4:44 am


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