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
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.
“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.”
Buyouts between partners are usually mired in things that people think are legal entitlements. Let’s look at the most common misconceptions around buyouts.