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partnership dispute lawyers Brisbane

Partnership Disputes

Partnership Dispute Lawyers

Partnership disputes can be challenging, costly, and disruptive to a business. They may arise when partners have different views about the direction of the business or conflicting ideas about how the business should function or how its profits should be distributed.

Parties operating in business partnership tend to work together closely, with disputes having the potential to completely derail the business and any working relationships. Therefore, it is important to obtain legal advice as soon as possible. PCL Lawyers’ partnership dispute lawyers can advise you on your rights and options and have extensive experience representing partners in negotiations and litigation.

Common disputes which our lawyers encounter include:

  • Breach of fiduciary duties: partnership relationships impose fiduciary obligations on partners, which requires each partner to act in the best interests of the business
  • Conflicting interests: where partners have different visions for the business or conflicting ideas on how the business should operate
  • Death of a partner: where the former partner’s share in the business becomes part of their estate, which may need to be bought by the remaining partners
  • Departure of a partner: when a partner is expelled or retired by choice, disputes may arise regarding the value of the departing partner’s equity
  • Distribution of profits and capital contributions: partners may disagree about how profits are to be distributed, or seek to have wrongful distributions returned
  • Misappropriation of business assets: when a partner uses business assets or business funds for their personal benefit
  • Management or personality conflicts: when the working relationship between partners becomes strained or unmanageable
  • Non-performance: when there is underperformance or non-performance of a partner
  • Poorly prepared partnership agreements: where the partnership agreement contains no method of resolving disputes or is silent on important issues like profit sharing
  • Regulatory Issues: such as legal, taxation, or superannuation.
Brisbane partnership lawyers

Are you conducting business in a partnership?

Generally, partnerships are intentionally formed when two or more individuals, companies, or trusts, agree to act in partnership and to share profits.

However, you may be conducting business in a partnership without your knowledge. Partnerships may be created by two or more parties carrying out business in common with a view to making a profit. While partners share in the profits of a business, they are also jointly and severally liable for its debts, including taxation. If you are acting in partnership without your knowledge, you may be incurring additional liabilities.

If you are involved in a business arrangement with another person which involves sharing the profits of the arrangement, it is important that you understand the legal implications of your relationship. We can advise you on the nature of your relationship with another business, and what strategies and documents you need in place to protect your interests.

We recommend that any business operating as a partnership has a carefully prepared partnership agreement which sets out the ways the partners interact and how the business operates. One of the most common causes for disputes between partners are caused by a lack of a partnership agreement, or a poorly prepared partnership agreement.

How are disputes resolved?

Properly drafted partnership agreements will contain a dispute resolution process for the parties to follow, such as arbitration or mediation. If the parties are unwilling to follow that process, court action is possible and can be more effective. If no partnership agreement is in place, the Partnership Act and the common law will apply.

Our lawyers are experienced in resolving partnership disputes through both negotiation and litigation. We work to find a solution at the earliest opportunity which protects your interests and your business.

Having experienced partnership dispute lawyers involved can help you achieve a positive outcome.

Things to consider when ending a partnership

If you are intending to bring a partnership to an end, it is important to do so in writing with a high degree of accuracy. The terms of the Settlement Deed should be carefully considered, especially if you intend to continue to work in the same or similar industry.

When finalising the exit or dissolution of a business partnership, there are a number of factors that need to be considered, including:

  • existing contracts: the terms of any existing contracts may need to be renegotiated or terminated
  • customer value and ownership: the value of the business’s customers and the ownership of any customer lists may need to be determined
  • business debts: any outstanding business debts need to be paid
  • licences: any necessary licences may need to be transferred or surrendered
  • tax liability: the partnership’s tax liability for the current and future years needs to be determined
  • assets: the assets of the business need to be divided between the partners
  • profits: any profits that have been made by the business need to be distributed between the partners.

If you are intending to dissolve a partnership, it is important to make sure that the agreement is carefully considered, especially if you intend to continue to work in the same or similar industry. The division of assets is also important.

Our experienced team can assist you in understanding your personal and commercial needs and the requirements of the partnership business. We can help you to mend the partnership or, if required, sever the partnership in the most cordial way possible.

Why choose us?

Primarily because we will draft you a quality lease to protect your interests. Secondly, our fees are very competitive. We can great offer excellent pricing because we have well-defined precedents, and a lot of experience in this space.

We also understand the commercial realities that businesses face and our goal is to be the “go to” partnership dispute lawyers. We are approachable, down-to-earth and very astute when it comes to delivering quality legal advice.

Contact Us Today

Call us today on 1300 794 559. Alternatively, for a prompt response, please complete the contact form on this page.

Providing clients with the best possible service and advice.

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Our Brisbane Lawyers will provide you with expert legal advice as well as practical solutions. Our law firm has extensive experience in guiding client through their matter addressing commercial considerations and real-life situations and resolving issues quickly.

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