What to do if I have a 50/50 partnership agreement/contract and now want to remove my partner from the company?

UPDATED: Sep 5, 2014

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What to do if I have a 50/50 partnership agreement/contract and now want to remove my partner from the company?

It indicates what my partner’s obligations were and mine. My partner did not hold up his end and now I can’t even get ahold of him to get bank cards and a business tax certificate. I’ve put a lot of effort into this company and intend on finding an investor to proceed on. How do I remove him from the company, tax certificate and bank without having to return the $300 of the $3000 he was suppose to invest?

Asked on September 5, 2014 under Business Law, Georgia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You normally *can't* remove a partner from a partnershp unless the partnership or other controlling documents state that you may do so under certain circumstances, those circumstances apply, and you comply with whatever the rules or requirements in the documents are.

In some cases, you can sue your partner for breach of contract (if he does not due what he contracted or promised to do), for  fraud (if he lied about something important to get you to invest or join the partnership), or breach of fiduciary duty (if he is not honoring the obligations to a partner which the law puts on all partners--certain basic requirements of honesty, of not using partnership assets for his own ends, etc.). And in some cases you can sue to have the partnership dissolved and the assets distributed to the partners--this is typically the case if you find yourself deadlocked and cannot agree to a course of action. But all these suits can be complicated and expensive; depending on how much you have yourself invested and the business's assets, you may be best off just quiting the company (if you are not obligated to loans, contracts, leases, etc., which obligations would follow you) and starting a new business. If you are obligated to loans, contracts, leases, and the like, then you may wish to dissolve the partnership and should seek an attorney's assistance in doing so.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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