What to do if 3 partners in an agriculture related business wish to close the business but the fourth partner wants to run the it himself?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

What to do if 3 partners in an agriculture related business wish to close the business but the fourth partner wants to run the it himself?

The latter partner is far from qualified and not certified to handle the products. How do we protect ourselves from being held responsible for fines levied by the environmental protection agency for violations, from fraudulent taxes returns, unpaid creditors, etc.?

Asked on September 8, 2014 under Business Law, Kentucky

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

As long as you are part of the business, you can't protect yourselves entirely. However, you can sell your interests to the 4th partner--even for a nominial amount if you want--and execute documents (e.g. contracts of sale) which remove you from the business and pursuant to which he will also indemnify you from any costs or liability which you might somehow incur. Any compentent business or transactional attorney can help you draft the documents and structure the deal so as to remove yourselves from the business and liability.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption