Several factors will affect the departure of the business partner. You must know why someone can push the partner out. This will help in safeguarding your position within the company. Thus, this blog has highlighted the reasons for this. Insights from this article will help you in taking a crucial step. So, please keep reading to uncover valuable insight.
Here are the reasons:
- Because the agreement says so
Before starting a business, you must sign a written agreement with your partner. This agreement should have all the rules and responsibilities of the partners. Plus, it should state what each partner is expected to do. It should also mention the procedure if one wants to leave the business. If the agreement allows removing the partner, you can do so. However, you should ensure the agreement has the procedure for removing the partner.
- If a partner is engaging in illegal activity
Though the chances are less, sometimes your partner might be involved in illegal activity. This reason is credible enough to depart with the partner. This will harm your business reputation and can lead to internal disputes. Those indulging in the illegal act will have to face the legalities. Meanwhile, you might also get held accountable. Before starting the business, you have to know about your partner. Also, consult your business lawyer in Los Angeles to learn more about the steps to help you can take.
- If the majority interest votes for the removal of the partner
Knowing that the majority can vote to depart the partner is crucial. This emphasises the drafting of the agreement on how the major decisions are taken within the firm. The agreement should include details of how your business will make decisions. If you are in the negative terms with the majority interest, look for a way to increase your stake in the business. Plus, you can talk to your business litigation lawyer in Los Angeles. They will guide you on the next steps that are in your favour.
- When business dissolves
Over time, businesses might dissolve into multiple firms. This means that partners might have to depart. There are so many reasons for the division in the company. The most common one is that the business is no longer profitable. The conflict between the partners is also a reason. Overall, hiring a business lawyer in Los Angeles can help you in such a situation.
Bottom lines
These are some of the reasons why partners are pushed out. So, safeguarding yourself and your business is essential. Otherwise, you might end up in an undesired situation.
We recommend hiring a business litigation lawyer in Los Angeles. They will guide you in your business journey.
James Stevenson is the author of this article. To know more about Los Angeles Lawyer please visit our website: lawpla.com
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