Business Partnership Advisor

Together, we can fix your business and partnership problems

Chris Reich, Business Luminary

5 Points to Consider When a Partner Is Locked Out Of the Business

Chris:

My partner is a mess. He comes in late, leaves early, and doesn’t do any work. He makes us look bad in front of customers. I’m afraid he is going to take things from the business. He has used the company’s credit card lately for personal items. I have had enough and want to lock him out of the bank account and the business. Can I do that?

Locking a Partner Out of the Business

I get calls on this every week. Locking a partner out is a risky move. The locked out partner has rights that if violated could entitle him to reinstatement and damages. You are far better off negotiating a separation than risking a court action against you.

 

Did You Like This Post? Would You Please Rate It?

Click on a star to rate it!

Average rating 4.9 / 5. Vote count: 13

No votes so far! Be the first to rate this post.

4.9
(13)

“If you are thinking about locking a partner out of the business, I advise against it. You are better off legally to negotiate a dissolution of the partnership.”

Do you like FREE services? Contact me now for a 100% confidential and 100% FREE consultation.

Prefer a direct approach?

Email: [email protected]

Phone: (530) 467-5690

Learn How to Draft Agreements with Your Partner by Chris Reich

How to Draft Resolutions to Strengthen Your Partnership

I recommend that partners talk through a specific issue and then draft an agreement (called a resolution) that sets a policy. You can keep this in a binder to serve as amendments (or foundation) to your Partnership Agreement. In this post I’ll explain how to talk about things that bug you with your partner and how to draft a binding resolution to fix the problems.

When Politics and Business Partners Don't Mix by Chris Reich

When Politics and Business Partners Don’t Mix

Unless you are in some sort of political business, you should keep politics out of your establishment completely. Of course, you have freedom of speech, but we are in very contentious times and displays of political or religious positions might be off-putting to to your customers.

Wife Should Not Keep Books TeachU

Relatives Should Never Keep the Books in a Business Partnership

Even when people get along well, having one partner’s relative handling the books just isn’t good policy. There is an inherent conflict of interest.

Partnership Expectations and Vision by Chris Reich of TeachU

About Documenting Partnership Expectations

Many partnership disputes begin around expectations not being met. But were they ever defined in the first place?

Summary
5 Points to Consider When a Partner Is Locked Out Of the Business
Title
5 Points to Consider When a Partner Is Locked Out Of the Business
Description

Locking a partner out is a risky move. The locked-out partner has rights that if violated could entitle him to reinstatement and damages. You are far better off negotiating a separation than risking a court action against you.