Delaware County Business Attorney Discusses How to Fire Your Business Partner
As a skilled Delaware County Business Attorney, clients come to me all the time with questions regarding how to fire their business partner or shareholder. If you wish to fire your co-shareholder or another partner, there are certain problems associated with that particular decision. The first problem is you have a duty of loyalty and a fiduciary duty to your co-partner, his best interest and the best interest of the company. Presumably, he has some value to the company for either contribution for marketing or production. So now the question is, what I am going to do to replace him?
If you breach the fiduciary duty and/or the duty of loyalty, you have a problem in removing a particular partner. It’s not that it can’t be done, because if his conduct merits termination, he can be terminated as an individual employee of the company. But you still have the remaining interest that he owns, and how you’re going to evaluate them. Now you have an individual that you’ve terminated, not getting services from him for which he now has an ownership interest in the company. You now have to venture into establishing his ownership, negotiating his exit, and moving forward from there.
Are you looking to fire a business partner or shareholder of your company? Contact experienced Delaware County Business Attorney Walter Timby.
This educational blog was brought to you by experienced Delaware County Business Lawyer Walter J. Timby. Our law firm proudly represents clients throughout Delaware County, as well as Pennsylvania, the greater Philadelphia area, Delaware and New Jersey.