Can My Business Partner Push Me Out?

Starting  a business with a partner is like getting married. There is trust, anticipation, and a common dream. However, what do you do when it all goes wrong? What if your business partner attempts to oust you from the business you have built together?

It’s a difficult predicament, emotionally as well as legally. If you’re wondering, “Can my business partner push me out?” it’s time to get to the bottom of it. And more importantly, it may be time to speak with a business partner dispute attorney.

First, Can They Even Do That?

Short answer: Possibly.

It depends on a couple of key factors:

• What does your partnership agreement state?
• What kind of business structure do you have?
• What’s the motive behind them wanting you out?

If you didn’t create a good agreement from the beginning, things can get complicated in no time. And if your shady partner is playing games with you, getting assistance from a business partner dispute attorney sooner rather than later is a good idea.

Types of Business Structures and What They Imply

The organizational structure of your business determines a significant part of whether or not your partner has the authority to oust you.

1. General Partnership

Equal ownership unless specified otherwise.

Either party can generally make decisions that impact the business.

If your partner wishes to oust you, they might not be able to legally do so without terminating the partnership altogether.

2. Limited Liability Company (LLC)

Regulated by an operating agreement.

If there is a buyout or elimination provision in the agreement, then yes, it can happen.

Without an agreement? You might be facing a battle in court.

3. Corporation

Shareholders, directors, and officers are all involved.

If your partner owns more shares or has control of the board, they can vote you out of your officer role.

However, holding shares still entitles you to rights unless they buy you out.

Signs Your Partner May Be Trying to Push You Out

Not all push-outs are obvious at first. These are a few red flags to look out for:

• You’re suddenly not invited to meetings or important decisions.
• They limit your access to bank accounts or financial records.
• You’re being excluded from valuable emails or client conversations.
• You get word that a new investor or partner is being hired.

These are definite signs that your position could be under threat. If you find yourself observing any of these, speak to a business partner dispute attorney immediately.

What Can You Do If They Try?

The good news: you’re not helpless. Here’s what you can do:

1. Read Your Agreement

With your operating or partnership agreement in hand, review it for what it says regarding partner responsibilities, removal, or buyouts.

2. Document All Communications

Document all conversations, emails, changes in your responsibilities, and any questionable activity.

3. Attempt Mediation or Negotiation

Sometimes disputes can be resolved through a third-party mediator. It’s faster, cheaper, and less stressful than going to court.

4. Seek Legal Help

If things get ugly or you’re unsure of your rights, call a business partner dispute attorney. They’ll review your documents, explain your options, and fight for your rights if needed.

How a Lawyer Can Help

Let’s be honest, this is not merely a business dispute. It is personal. A good lawyer will not only ensure you’re well-advised about your legal position but can also:

• Prevent wrongful removal efforts.
• Assist in enforcing buy-sell provisions.
• Represent you in court, if necessary.
• Negotiate healthy exit conditions should you decide to leave.

If you have been looking for a business law firm nearby in Montreal, do not settle for just any firm. You need one with experience in dealing with intricate disputes and strong local corporate law knowledge.

Legal Solutions in Business Partner Disputes

Following are some solutions a court or negotiation process may result in:

• Injunction: Prevents your partner from acting until the case has been decided.
• Buyout: Requires one partner to purchase the other’s interest at a reasonable value.
• Dissolution: Dissolves the business and splits assets as per.
• Damages: If your partner operated illegally or harmed you, you may be eligible for damages.

Things to Avoid During a Dispute

In this tense situation, it’s easy for emotions to get in the way. Here’s what not to do:

• Do not begin issuing threats.
• Do not deny information or sabotage the business.
• Don’t leave without talking to an attorney.
• Don’t share it on social media. Keep it quiet.

Keep in mind, whatever you say or do might be used against you down the road. Keep it clean, cool, and documented.

Menneh Legal: Your Companion Throughout Business Partner Disputes

At Menneh Legal, we’ve assisted numerous entrepreneurs in Montréal and the surrounding regions in guarding their rights and acquiring solutions in times of trouble. Whether you’re wading through a partner conflict, dealing with corporate reorganization, or require guidance regarding how to proceed, our skilled staff is always available to assist you. We are experts in civil law, real estate law, commercial law, corporate law, and litigation. Should you require sound assistance, we’re a phone call away.

Frequently Asked Questions

1. Can my business partner expel me without my permission?

Not generally. It will depend on your agreement and structure. Most commonly, they require grounds and a process in law to do so.

2. What happens if we don’t have a written partnership arrangement?

Then matters become complicated. Local law will apply to your dispute, which is why obtaining legal assistance quickly is paramount.

3. Can I sue my business partner for wrongful expulsion?

Yes, if your removal is in bad faith or violates the terms of your agreement.

4. How much does it cost to employ a business partner dispute lawyer?

It depends on how complex your case is. Some attorneys provide consultations or by-the-hour billing. It’s worth the expense to safeguard your stake.

Final Thoughts

Yes, your business partner may be able to try to push you out. But whether they will succeed is up to you, your agreement, your business structure, and your refusal to back down. You worked hard to create your business. Don’t let someone take it from you unjustly.

If you feel uneasy or uncertain about your circumstances, don’t hesitate. Contact a business partner dispute lawyer or search for a business law firm near me in Montreal that can provide the personalized assistance you need.