My business partner wants to leave the company, but wont let me buy him out. What can I do?

Question

My business partner wants to leave the partnership for at least 2 years to pursue other interests. He wants me to take on all the roles and responsibilities so that he doesn t have to worry about accounts or taxes etc.

However he will not sign over the company to me, nor accept a buyout as he wants to return if/when the business becomes successful.

He does not want to do any work until then. What can I do?

It seems unfair that he wants me to take on all the work and responsibility, yet he wants to waltz back in if things start going well.

Elaine M · Answer

It would be his duty to hire someone to do his part of the business.  Talk to a lawyer.

Judy · Answer

What does your written partnership agreement say you do in this situation?  If you didn't have one, you have created a mess and need to see a lawyer.

danxp2 · Answer

What is written down in your partnership agreement... before starting this you and your partner and legal council wrote out and signed a partnership agreement right?

A document specifying things like responsibilities each of you have as partner, if each of you can sell your share to outside party with or w/o approval of the other, payments from the business you are each due and any contingencies on those payments, what each of will bring to the company (capital, leads, years of experience etc.)

This should have been covered there, oh yeah but like 99 percent of partnership they are started without one of these or it is incomplete, consider getting legal council if you do not want a silent partner who can come back at a later time and be an active partner.

David 14 · Answer

Nothing you can do. He's an owner too and can do what he wants.

Anonymous · Answer

U hire a lawyer and take him to court. He can not do whatever he wants

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My business partner wants to leave the company, but wont let me buy him out. What can I do?

5 Answers