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: 14

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

4.9
(14)

“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

Part 2 of Things You Need to Know About Partnership Buyouts

Things to Know About Partnership Buyouts— Part 2

Here are more things you need to know if you are opening buyout talks with your business partner.

There Are Many Things Not Well Understood about Partnership Buyouts

Things to Know About Partnership Buyouts— Part 1

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

Violence in a Business Partnership is a Very Serious Matter

Violence By a Business Partner Is Never OK

If your business partner ever is violent, call 911 immediately. Yes, even if he missed. You want to document threats of or actual violence.

Business Partner Buyout Surprise

Why Is This a Big Surprise in Buyout Negotiations?

Don’t be surprised if parties act in their own best interest during negotiations. That is normal. I would be surprised if they didn’t!

Summary
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.