Partnership - Rogue Partner
5 years ago
I am partner in a small partnership firm owning 80% shares with other two partners owning 10% each. While me and other partner ( one of the other two) diligently work to get the best returns for the firm, the other partner has turned rogue and doesn’t contribute and is only interested in his share of profit. He threatens me and has nil contribution to the company for the past 8 years but he has been collecting money from us on the pretext of shutting down partnership firm. What should be the best solution to
Get him ( rouge partner ) out of the partnership firm? It is becoming very difficult to talk to him in a cordial manner and our partnership deed doesn’t have arbitration clause nor we have enough funds to pay lawyers’ fees for years.
Even the 10% stake/ share to this rouge partner was a kind of incentive/ sweat equity.
Ashish K Dongre
Responded 5 years ago
Pass a resolution and remove him and intimate the same to the Registrar of Firms if it is registered. Lodge a complaint with police.
Vimlesh Prasad Mishra
Responded 5 years ago