Voting A Partner Off The Island
September 2018
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A partner in this sense is an owner. A non-equity partner is just an employee. Owners have certain rights to the financial benefits of the firm. Dealing with the how and why is important, but the what is most important. Most partners, if they are smart, are not signing on to an agreement that will easily displace them by a simple majority vote. So the only thing that works is a proper buy-sell agreement that not only sets the terms for termination, but also creates the capital to buy out a partner. This last piece is missing 99% of the time, and as such creates all sorts of problems for the firm, not to mention for the terminated partner. Hence the need for trial attorneys.