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Relationships between business owners

Whether your business is a limited company, a partnership, a joint venture or any other joint enterprise, regulating the relationship between you is a vital element of the preventative message that we give to business owners. Every venture starts out with good intentions, excitement and a common purpose to which everyone is committed, but as we all know that initial unity can be overtaken by later problems. Perhaps personalities do not fit as well as was hoped. Maybe ill health has prevented one of you from making a full contribution. Perhaps enthusiasm has dropped and turned into demotivating behaviour. It could be that trading performance also signals a strategic rethink.

Unscrambling business relationships in these circumstance will only be successful and cost effective if the correct documentation, such as a Partnership Agreement, Shareholders Agreement or Joint Venture Agreement was put in place between you at a time when relationships were strong. The consequence of having no agreements can usually mean that someone enjoys a stronger position and greater protection in their negotiations than they probably deserve.

The chances are that if there is a parting of the ways that one of you at least will continue in the business in one form or another. Your staff, customers and suppliers are all likely to suffer if prolonged stalemate situations over the future of the business are not resolved quickly.

Think of documentation of this kind as you would with buildings insurance. You hope you never need it but if your premises are destroyed by fire you would be very glad that you did. If you protect your buildings in this way, shouldn’t you protect the continuity of the business in the same way?

Call us now before problems arise.