Partnership Dispute and Partnership Dissolution
When a partnership deteriorates or completely breaks down it can cause distress and difficulties in relation to decision-making and the general day to day operation of the business. We understand that partnership disputes need to be resolved quickly in order to minimise their impact on the running and success of the business.
We will aim to resolve the dispute or to reach a compromise using initial communication and negotiation which may lead to Alternative Dispute Resolution if necessary. If the dispute cannot be resolved and court intervention is required we will always put your best case forward.
Dissolution of a partnership occurs when the partnership relationship terminates. Dissolution does not inevitably lead to a winding up of the partnership.
A “technical” dissolution arises when one partner leaves and/or another partner joins, but the business carries on under a new partnership arrangement. In effect, the old firm has dissolved and been replaced by a new firm of partners which will take on the assets and liabilities of the old firm and the business continues without a break. As far as an outsider is concerned, the partnership
In contrast a “general” dissolution usually refers to a dissolution leading up to a winding up of the business and assets. Once the winding up is complete, the creditors and other liabilities satisfied and the remaining assets distributed among those partners so entitled, the partnership is at an end.