In any business partnership, it is vital that you are able to trust your fellow partners. It is not a good idea to go into business with someone that you cannot rely on, and your business is unlikely to succeed under these conditions.
We take a look at what you can do to ensure you can trust your partner, and also offer guidance on dealing with cases where you discover later on that a partner is not as trustworthy as they first appeared.
Choosing a business partner
In a business context, it is important to remember that trust is not the same as friendship. Indeed, there are many examples of successful business partnerships where the partners do not socialise at all.
While it would be advantageous to have some knowledge of what a potential business partner is like, it is also good practice to do a background check before making a decision. This will reveal if there are any reasons why you would not want to go into business with this person.
What happens if you discover your partner has done something wrong?
Unfortunately, there are many examples of occasions where one person within a business has deceived their fellow partners and been caught undertaking illegal activity. This includes crimes such as fraud or theft, for example taking money from the partnership accounts for personal use or falsifying expense claims.
Your partnership agreement should also plan for the long-term future of the business, and this will include any forbidden activities such as setting up a rival business without the other partners knowledge.
If you discover something of this nature has been going on, there are a number of things you have to deal with, not least the possibility of legal action being taken against you. However, the removal of the offending partner is also likely to be high on your to-do list, and this can be achieved much more easily with help from an experienced partnership law solicitor.
Ralli Solicitors have an extensive knowledge of this process and will be able to advise you on what needs to be done to ensure your business can end its association with that partner and move on. Call us on 0161 832 6131 for further information.