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My company is suffering due to my business partner’s actions

Licensed UK Insolvency Practitioners FREE Meeting for Company Directors

We can help with serious company debts, HMRC and creditor pressure, VAT/PAYE/Tax arrears, cashflow problems and raising finance.

My company is suffering due to my business partner’s actions

Reviewed: 18th February 2016

Disputes between business partners are very common, but when they escalate and begin to affect the entire company, you need to take professional advice to give you a clear picture of your options.

Sometimes the problem is just a clash of personalities; other times, the financial situation takes a turn for the worse because your focus is no longer on business growth and development.

If there’s a clear written agreement in place, it could limit the damage caused by a partner’s reckless actions. The Partnership Act of 1890 states the duties each partner has, both to each other and to all interested parties - one of these is to act in good faith towards all other partners.  

Protection of your own business interests in the company is vital, however, and you’ll want to make sure that your investment is safe in the long-run.

What are some of the common issues faced by business partners?

  • Disagreements over operational and management issues, or long-term business strategies
  • One partner having a conflict of interests that jeopardises the company’s success or reputation
  • Failing to file statutory accounts, or to provide crucial financial information
  • Breaching the Companies Act in relation to the duties of a director
  • Disagreements over the salaries each partner takes out of the business

Professional mediation is a crucial part of resolving these types of dispute. Continuing in business and growing the company are usually the main goals for all partners, and maintaining a good business reputation is fundamental.

This is why it’s important to retain confidentiality if possible, and to avoid any dispute becoming public knowledge, as it could easily affect trade and jeopardise your company’s future.

Legal avenues

Of course, taking legal action is difficult to avoid in some situations, and the potential avenues in this respect include expelling your partner. The wording of the partnership agreement should dictate whether or not this is possible, as well as determining if your partner’s actions have gone against the original terms.

Ending the partnership is an option if you do not have a written agreement. This is a drastic measure, however, which is why seeking professional advice at the first sign of problems is helpful in reaching a positive outcome.  

Real Business Rescue is here to help. Our team of professionals can provide the expertise to realign the dynamic of your business partnership, and offer the advice and guidance needed to ensure the continuity of business. Call one of the team to arrange a fully-confidential same day consultation. With 55 offices stretching from Inverness down to Exeter, Real Business Rescue can offer unparalleled director advice across the UK.


Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
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Licensed Insolvency Practitioners