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Infolawyer, Attorney
Category: Business Law
Satisfied Customers: 1765
Experience:  Experienced lawyer
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I have a business partner who has been convicted for

Customer Question

Hi, I have a business partner who has been convicted for peddling drugs and out on a bond but the lawsuit is still open. I have no interest to carry any further partnership has I cannot trust him. My partnership deed clearly states that a partner a) shall not do or cause to be anything which may be detrimental to the interest of the firm b) if a partner commits a criminal offence or do or suffer any act which would be a ground for the dissolution of the partnership by court and in such case the other partner purchase his partnership.
I can solve this amicably I know, but I am worried if he doesn't agree
a) he might not be ready to sign cheques where I might not be able to pay my employees
I have to proceed to the court which might take long. But this will also freeze up my company bank accounts
How do I workaround all of this without taking matter to court?
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 1 year ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

I take it from your post that your partner is out on bail while he is appealing his conviction, is that correct? Do you have any provision in your partnership agreement for valuing the business so the amount of your partner's can be quickly determined? For example there may be a provision that says if the parties do not agree it goes to arbitration or that a particular formula for buyout the interest is in the agreement. Do all your checks have to have both your signatures on them? Does he still come into the business to work?