QUESTION
Can a business structured as a general partnership be sold without all partner's signatures? The business has no partnership aggreement.
Asked on Mar 24th, 2013 on Business Law - New York
More details to this question:
I am in the process of selling my business to pay off all its debt. It is a partnership of 3 partners, one of whom has been estranged for17 years. There is no partnership agreement between the 3 partners. I have consent from the other partner, but the estranged partner is now stepping into the picture demanding a piece of the action. I have been the sole operating partner for 15 years and can prove I have invested much more into the business than the other partners. Can I proceed with the sale without the troublemaking partner? Shouldn't majority consent apply?
1 ANSWER
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In the absence of a written agreement, then the 'sale' will be dependent on the 'default' provisions of New York law. That being said, if the estranged partner is making waves, you will be hard pressed to go forward on a sale, claiming 'majority' rules. I strongly suggest you consult with and retain qualified business counsel.
Gerry Wendrovsky, Esq.- Upper West Side Business Lawyer
www.upperwestsidelawyer.com
Answered on Mar 25th, 2013 at 2:44 PM