Friendships are sadly not always a good foundation for business relationships. In one case, a falling out between workplace colleagues who had been personally close for almost 20 years ended up being fought out before employment tribunals.
The two men had established a successful company and were its only directors. One of them owned one third of the venture, the other two thirds. Following a row about website redesign, the minority shareholder claimed that he had been sacked. His former friend, however, argued that he had resigned.
In the end, and after a lengthy legal process, neither individual felt they received a satisfactory outcome.
The key point here is that people often mix business with pleasure and achieve very mixed results. Even if you trust someone completely, you never know what the future may hold. People change and disagreements happen. It is important that your relationship is properly memorialised in an appropriate legal document, covering off all the various concerns you and your business associate may have or encounter both in the present and for the future.
Even if business partners never fall out, sometimes the worse can happen, with one business partner passing away, sometimes unexpectedly. Without a legal agreement in place, it may be the case that a third party who is either unknown to you or inexperienced may end up involved in the business as a result of the partner’s passing.
Obtaining legal advice to formalise your business partnership will ensure that you and your business associates achieve both protection and peace of mind. We have a specialist team who can advise on the most appropriate course of action for your business, whilst considering all the options available to you.