Can I Stop Myself From Being Expelled From A Business Partnership?
Forming a partnership can be an efficient and effective way to run a business in Florida. Though, even when business partners start out on great terms, conflicts can arise. There may even come a point in which one or more business partners takes action to try to expel another partner from the business.
This raises an important question: Can you stop a business partner from pushing you out of a partnership? The answer depends entirely on the specific circumstances—including the terms of the partnership. Here, our West Palm Beach partnership dispute lawyers explain the key things to know about your rights if your business partners are attempting to expel you from the partnership.
Why Might Partnership Expulsion Happen?
Expulsion occurs when a business partner is removed from their ownership position in the company. A partner may be expelled from a business partnership for a wide range of different reasons. Some of the most notable examples include:
- Alleged breach of the partnership agreement;
- Alleged professional misconduct;
- Filing for personal bankruptcy protection; or
- Failing to live up to other professional/contractual requirements.
What it means to be expelled also depends on the specific circumstances of the case. Though, as a general matter, the expelled partner typically needs to be paid for their ownership stake in the business. How much they will be paid will depend on many factors.
Your Rights (and Responsibilities) Start With the Partnership Agreement
If, when, and how a business partner can be expelled from a partnership in Florida depends largely on the terms of the partnership agreement. A well-drafted partnership agreement should be comprehensive. Along with other things, a partnership agreement should have clear terms regarding partnership expulsion.
If you are trying to stop a business partner (or business partners) from expelling you from the business, you should refer to the partnership agreement. Their ability to do so—and your ability to stop them—depends primarily on the specific terms of the agreement. Carefully review the contract for any language regarding partnership expulsion.
Options for Resolving a Partnership Expulsion Dispute
Once one partner moves to expel another, it may be difficult to save the business relationship. That being said, the partner being expelled does not merely have to accept the matter. There are legal options available (negotiation, mediation, arbitration, litigation, etc) that can help you resolve the matter in the most favorable possible manner. As a business partner, your legal rights and financial interest matter. A South Florida partnership dispute attorney can review your case, assess your partnership agreement, and help you determine the best course of action.
Consult With Our West Palm Beach, FL Partnership Attorney
At Pike & Lustig, LLP, our commercial litigation attorneys have deep experience handling partnership law cases. If you are at risk of being expelled from a business partnership and you have questions about your rights, we are available to help. Call us right away to set up your fully private initial appointment. We represent clients in West Palm Beach, Miami, and the surrounding areas.