My Business Partner Is Making Important Decisions Without Me—What Are My Rights?
A business partnership requires trust and a good working relationship. When all parties are not on the same page, there can be serious issues. This raises an important question: Can a business partner make a major decision without me? In Florida, the answer depends largely on the specific structure of your business. In this blog post, our West Palm Beach partnership dispute attorney explains the key things to know if your business partner is improperly making decisions without your input.
The Partnership Agreement is the Basis of Your Rights and Responsibilities
The Florida partnership laws regulate the full range of partnership businesses, including general partnerships, limited partnerships (LPs), and limited liability partnerships (LLPs). However, our state’s partnership laws only have a limited amount to say in regards to the day-to-day and big picture decision-making authority for businesses.
Decision-making authority—including the rights and obligations of each business partner—is determined largely based on the partnership agreement. Every partnership should have a well-drafted and comprehensive written agreement in place. If a dispute over decision making arises, you should always start by referring to the partnership agreement to determine your rights.
What to Do If Your Business Partner is Making Major Decisions Without You
If your business partner is making major decisions without you, it is always best to take a proactive approach. To start, it is also generally a best practice to try to resolve the matter at the lowest possible level of conflict. Here are three steps to take if your partner is making major business decisions without your input:
- Address Your Concerns Directly With Your Business Partner: To the extent that you have a positive working relationship with your business partner, you should start by raising your concerns directly to them. You may be able to resolve the matter informally and clarify any issues about decision-making.
- Document Exactly What Happened: If a legal conflict does arise over decision-making authority for a business partnership, you will want to have as much information as possible. Gather all documents, records, and other details that establish what happened.
- Seek Advice from a Partnership Dispute Lawyer in Florida: You may have to escalate the matter to protect your legal rights and financial interests. Do not hesitate to consult with an experienced Florida partnership law attorney. A lawyer can help you determine the best way to resolve a decision-making authority dispute. Once again, a non-adversarial approach—negotiation, mediation, etc—is usually the right starting point. Though, litigation may be required if your rights were violated.
Speak to Our South Florida Partnership Lawyers Today
At Pike & Lustig, LLP, we understand the challenges of dealing with a partnership dispute. If you believe that your business partner is improperly making key decisions without your input, we can help you determine the best available course of action. Contact us today to set up your strictly private, no commitment initial case review. From our law offices in West Palm Beach, Miami, and Wellington, we provide business partnership dispute representation throughout South Florida.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0620/0620.html
