There’s nothing better than a harmonious business partnership, and unfortunately, few things can be worse if that relationship turns sour.
To avoid disputes, it’s crucial that every member of the partnership understands their responsibilities and what to do if disputes arise.
Disagreements in business can happen for a few reasons, including:
- Profit sharing disagreements
- Management disputes
- Financial decisions
- Expansion plans
- Breach of contract
- Ending or leaving a business partnership
Preserving the partnership and continuing to have a good working relationship is essential to the success of the business, and there are a few ways to keep that healthy.
In case of disputes, the first thing business partners can try is to simply communicate effectively. Identifying the issue at hand, listening to each other’s concerns and then working towards a solution is the best way to quickly solve problems.
If that is not working, you can seek help with a mediator who will facilitate discussions and negotiations among all the partners. Getting professional advice from a legal, accounting or taxation expert – depending on the issue at hand – can also help in decision making and prevent the problem from escalating.
Finally, if the issues are proving too great, or fast action is required, you may need to initiate legal proceedings. If that is the case, you will need a commercial and business law expert to help you and advise you of your legal options.
At all times during the dispute, it is important for partners to continue to meet their obligations to the partnership agreement and the business, including management obligations.
The team at GLG Legal can help you with all aspects of business partnerships. From drawing up the agreements and contracts, to assisting with disputes, our experts are waiting to meet with you.
Make an appointment today by calling (07) 3161 9555 or emailing info@glglegal.com.au