“… the conviction that a partnership will last forever in sickness or in health, for richer or poorer, may fade quickly …” As is well known, under certain Middle Eastern legal systems a husband can divorce his wife by uttering, “I divorce thee” three times in her presence. In contrast, in a partnership at will…
“… Possession being nine-tenths of the law, a partner/member in this position may have to sue to recover his capital …” A worrying trend has been emerging. It has become much more common for partners and LLP members leaving professional practices to have difficulty extracting their capital. Typically professional practice governing agreements provide for capital…
Please note: this post is now out of date following subsequent tax legislation and case law. “… At the outset he has been lulled into a false sense of security, and may consider himself to be the victim of a scam …” Lawyers and accountants have been very creative in their use of LLPs. But…
“… Typically the senior partner becomes complacent about the fabulous hand of cards that life has dealt him and starts to presume that he can do no wrong …” It may come as no surprise that amongst professional practices that have no provision in their partnership deed for regular senior partner elections, an unusually high proportion…
… The majority of professional practices are woefully deficient in detecting the “virus” at the point of introducing it/him into the practice … Last month I chaired an Association of Partnership Practitioners workshop on “Rogue Partners”. What was striking was how many members attended (well over 100 leading partnership practitioners) and the intense interest in the…
… By the time creditors are negotiating terms with partners the firm may have ceased to trade, and the partners may have gone their separate ways … (This article was first published in the Law Society Gazette on 21 June 2007) When a firm fails, major creditors are often prepared to agree to limit each…
