Common Causes of Partner Disputes
Partner disputes usually arise from recurring sources: disagreement over profit distribution or its calculation, one partner exceeding their management authority, a partner's absence from actual work contribution despite continued entitlement to their share, or one partner's wish to exit under terms unacceptable to others.
Reviewing the Founding Contract and Partners Agreement
We always start with precise review of the founding contract and partners agreement if one exists, the legal basis defining each partner's rights and obligations, and any dispute must be resolved in light of what this contract stipulates first.
Profit Distribution Disputes
We represent partners in profit distribution disputes, whether the disagreement is over calculating distributable net profit, or each partner's percentage, and help reach a fair settlement based on the contract's text and actual practice followed.
Exceeding Management Authority
When a partner responsible for management exceeds their agreed authority, such as entering major financial obligations without other partners' consent, we help affected partners claim a halt to this overreach and compensation for any resulting damage.
Negotiating a Partner's Exit From the Company
We help negotiate the exit of a partner wishing to withdraw, including a fair valuation of their share and the mechanism for paying this value, without needing to fully liquidate the company or enter lengthy litigation harming all parties.
Protecting Minority Partner Rights
We help partners with smaller shares protect their rights from majority partner dominance, including their right to access financial records and genuinely participate in fundamental decisions, not just a nominal share without real influence.
Resolving the Dispute Through Mediation Before Judicial Escalation
We help partners explore resolving the dispute through neutral mediation before escalating to full litigation, especially when the company's continuity benefits all parties despite the existing disagreement, a faster, less costly path better preserving the relationship.
A Company Dissolution Lawsuit as a Last Resort
When any amicable resolution proves impossible and the company's continuity becomes practically impossible due to the disagreement, we help partners assess the option of filing a company dissolution lawsuit, a last resort we pursue only after exhausting all other options.
Future Partner Agreements to Avoid Disputes
After resolving the current dispute, we always recommend drafting a detailed partners agreement covering potential future scenarios, such as a share valuation mechanism upon exit or dispute resolution, avoiding a similar dispute recurring later.
How We Start With You
Send us your dispute details with your partner and any founding documents you have on WhatsApp. We assess your position quickly and help you choose the most suitable path to resolve the dispute with the least possible harm to business continuity.
Frequently Asked Questions
My partner refuses to disclose the company's financial records. What are my rights as a minority partner?
You have a legal right to access financial records, and we help you formally claim this right and escalate it if the refusal continues.
I want to exit the partnership but my partner refuses to fairly value my share. What are my options?
We help you negotiate a fair valuation based on the company's actual assets and performance, and represent you in any necessary escalation if direct negotiation fails.
My partner responsible for management entered a major financial obligation without our knowledge or consent. What are our options?
We review their agreed authority scope in the founding contract, and help you claim a halt to this overreach and compensation for any resulting damage.
Can our dispute be resolved without resorting to full litigation?
Yes in many cases through neutral mediation, and we help you explore this option first especially if the company's continuity benefits all parties.
When is filing a company dissolution lawsuit the appropriate option?
Only when any amicable resolution proves impossible and the company's continuity becomes practically impossible due to the disagreement, and we help you assess this option as a last resort.
We disagree over how to calculate distributable net profit. How do we resolve this disagreement?
We review the founding contract's text and previously followed actual practice, and help you reach a fair settlement based on these grounds.
We resolved our current dispute. How do we avoid a similar disagreement in the future?
We recommend drafting a detailed partners agreement covering potential future scenarios, such as a share valuation mechanism upon exit or dispute resolution.