Whether you have a partnership agreement in place or not the law defines a business partnership.
In Western Australia a partnership is the relationship which subsists between persons carrying on a business in common with a view of profit.
If you are in a business together to make a profit you could be considered to be in a partnership and the laws on partnership will apply. This can be complex, and the assistance of lawyers may be necessary.
In a partnership all partners are jointly and severally liable for the decision of any one partner. Therefore, it is important for all of the partners to resolve any disputes quickly.
Partners may have different visions for the business or conflicting ideas on how the business should operate.
Death or by Retirement at Will When there is no partnership agreement or a poorly drafted agreement, disputes may arise when a partner retires or dies.
A partnership relationship imposes fiduciary obligations on partners Each partner has a duty to act in the best interest of the business.
A partnership relationship imposes fiduciary obligations on partners Each partner has a duty to act in the best interest of the business.
Examples of breaches:
- A partner making secret profits
- A partner engaging in an undisclosed activity which is for their own benefit or the benefit of a third party
A partner may be using the business assets and business funds for personal benefit which can be costly to the business
or underperformance of a partner
There can be disagreements or wrongful distributions that can be clawed back
such as legal, taxation or accounting
Partnership disputes, if left unresolved can be disruptive to your personal life and have a significant impact on the business. To mitigate any damage, seek legal advice as soon as possible
At Appius Lawyers, we aim for an early resolution to align with our client’s desired outcome.
If necessary, we have the skills and ability to litigate a dispute and in doing so will ensure that all is done to achieve the best outcome.
We can help resolve your partnership dispute by:
Whether you are starting a Partnership or looking at dissolving a Partnership legal advice should be sought. Often times people will look at the short-term rather than the long- term consequences and without proper legal advice you can make decisions that can cost you revenue and missed opportunities.
If there is a partnership agreement in place, we will consider the dispute resolution clause and proceed accordingly.
Normally a dispute resolution clause would outline the various methods such as arbitration or mediation.
Our lawyers will work with you to go through the facts and events that lead to the dispute and work out a plan and advise you of what options you have.
If no Agreement is in place, then the Partnership Act will dictate how the partnership dispute is to be resolved. It is quite a common issue, where very often lawyers must be engaged as the law in this area is both old and quite complex.
If you are intending to dissolve a partnership, it is necessary to consider the terms of any agreement in place and ultimately what will come of the assets of the Partnership and careful consideration must be given to the following:-
By taking the time to understand your personal and commercial needs and the requirements of the partnership business, our team can assist in resolving disputes and where such dispute cannot be resolved by providing advice and representation in any litigation that may be need to be commenced or defended.
One of the primary benefits of hiring Appius Lawyers is that you’ll receive personalised service.
Appius Lawyers is much smaller than the mega-firm, but we offer clients expertise and creative solutions at a cost that many larger firms simply can’t match.
One of the top benefits of working with Appius Lawyers is having more flexibility when it comes to billing structure.
The great thing about working with Appius Lawyers is that we focus and take the time to learn your industry, to understand your business and what we can do to help it move forward.
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